• Aims to deliver a high and consistent level of income to shareholders.
• Takes a multi-sector approach, investing in a broad range of fixed-income securities.
• May enhance portfolio diversification in conjunction with core stock and bond investments, for investors willing to accept the greater risks associated with extensive exposure to high yield and non-U.S. securities.
• Provides access to PIMCO's deep fixed income resources and expertise.

PIMCO Income Fund takes a broad-based approach to investing in income-generating fixed-income securities. Rather than stretch for yield by focusing only on lower credit quality bonds, the Fund pursues its objectives—high current income with capital appreciation as a secondary objective—by tapping into multiple areas of the global bond market and using income-efficient portfolio management strategies. This multi-sector strategy may help temper the risks of high income investing.

Potential for High and Consistent Income
Some bond income funds focus mainly on corporate bonds and can invest without limit in high yield securities—an approach that can result in a portfolio with concentrated credit risk. In pursuing a level of dividend income that is both high and consistent, PIMCO Income Fund taps into a much broader opportunity set, targeting a portfolio with:

• Exposure to sectors across the global bond market that offer attractive income potential in PIMCO's view
• No more than 50% of total assets in below-investment-grade securities
• An intermediate average portfolio duration to emphasize income while also considering capital appreciation
• Low correlation with the overall U.S. bond market

Flexible Approach
PIMCO Income Fund's multi-sector approach allows it to seek the best income-generating opportunities in any given market climate while managing portfolio risk. As a result, the Fund may be a good choice for a long-term income allocation. Of course, the Fund is subject to risks associated with bond investing, including market risk and interest rate risk. Since up to 50% of the portfolio may be invested in below-investment-grade securities, another primary risk is credit risk. Also, because the Fund may invest without limit in foreign bonds, it entails specialized risks such as political and economic risk and the risk of currency fluctuations. That is why is the Fund should be considered as a complement to an investor’s core bond holdings. For more information on all of the risks associated with this Fund, please refer to the prospectus.

Expert Management
PIMCO has been managing income-producing securities for more than 30 years and is widely recognized as one of the world's premier bond managers. The firm was at the forefront of investing in sectors such as mortgage-backed securities and emerging markets bonds, and employs dedicated specialists in virtually every sector of global fixed-income. PIMCO currently manages a number of income-oriented bond portfolios with investment objectives that are similar to those of PIMCO Income Fund.

The Fund's investment process starts with PIMCO's annual secular forum at which the firm develops a 3–5 year outlook for the global economy and interest rates. This helps set the basic portfolio parameters, including duration, yield-curve positioning, sector weightings and credit quality breakdown. The portfolio manager then attempts to identify investments that provide high current income through fundamental research, driven by independent credit analysis and proprietary analytical tools. However, consideration of yield is only one component of the Fund's approach; the manager also considers issues with capital appreciation potential. Notably, the Fund has the flexibility to allocate its assets among a broad spectrum of mortgage-related, government, corporate and other debt securities of U.S. and non-U.S. issuers, including emerging market bonds. The relative value assessment within credit sectors will draw on PIMCO's regional and sector specialist expertise.

Dan Ivascyn is a Managing Director and a member of PIMCO's mortgage and asset-backed securities team. He began his investment career in 1991, and has an MBA in analytical finance from the University of Chicago.

Newport Beach, California

Led by Founder and Co-Chief Investment Officer Bill Gross, PIMCO is widely recognized as one of the premier bond managers in the world. PIMCO applies this expertise to a range of core and specialized investment portfolios.