Past performance is no guarantee of future results. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed.

The Fund intends to invest a substantial portion of its assets in high yield Municipal Bonds and private activity bonds that are rated (at the time of purchase) below investment grade. Shareholders of a municipal bond fund will, at times, incur a tax liability, as income from these funds may be subject to state and local taxes. For shareholders subject to the AMT, distributions derived from private activity bonds must be included in their AMT calculations, and as such a portion of the Fund? distribution may be subject to federal income tax. Lower rated bonds generally involve a greater risk to principal than higher rated bonds. In an environment where interest rates may trend upward, rising rates will negatively impact most bond funds, and fixed income securities held by a fund are likely to decrease in value.

This is not intended as a recommendation, offer or solicitation for the purchase or sale of any financial instrument. References to specific sectors, securities or issuers are for illustrative purposes only. All holdings are subject to change daily. All share classes have the same portfolio but different expenses.

Risk Section Source: IDS GmbH-Analysis and Reporting Services, an investment analysis and reporting service which is a subsidiary of Allianz SE. This section is based on the actual share class and measures volatility. The different elements comprising this section are explained below. The overall market is represented by the unmanaged index which is the fund?s official benchmark in its prospectus. Beta measures the market related volatility of a portfolio. The beta of the market is 1 by definition. A beta greater than 1 indicates that a portfolios market risk is greater than the overall markets, while a beta less than 1 indicates a lower market risk. It is important to note that having a low market risk does not necessarily imply low volatility. A portfolio may have a low beta while experiencing volatility due to factors independent of the market. R-squared measures the percentage of a portfolio's movements that are explained by movements in the overall market. Standard deviation is an absolute measure of volatility measuring dispersion about an average which, for a mutual fund, depicts how widely the returns varied over a certain period of time.

PIMCO's average credit quality statistic is intended to provide clients with helpful insight into a portfolio's sensitivity to changes in credit spreads. In general, instruments are weighted at their market value. Certain derivatives, such as swaps, are weighted at "bond equivalent value", which is the notional amount of the instrument adjusted by the current gain or loss on the position. The two "legs" of a swap are included separately in the calculation. The "risky" leg (e.g. the fixed leg for interest rate swaps or the reference entity for credit default swaps) is assigned a credit rating associated with the regional market (for interest rate swaps) or reference entity (for credit default swaps) of the instrument. The "floating" leg is assigned a short-term rating of A1/P1.

PIMCO Funds & Allianz Funds are distributed by Allianz Global Investors Distributors LLC, 1345 Avenue of the Americas, New York, NY 10105-4800, www.allianzinvestors.com, 1-888-877-4626. Investment Products: NOT FDIC INSURED | MAY LOSE VALUE | NOT BANK GUARANTEED