• Managed by PIMCO founder and Chief Investment Officer, Bill Gross, who is widely regarded as one of the country's premier bond managers.
• The Fund can be an important core bond holding, offering a blend of potential total return as well as reduced volatility.
• Employs a variety of value-added strategies to increase total return potential and help reduce portfolio risk.
• The largest bond fund in the country and the only bond fund among the country's five largest mutual funds.*

A Core Holding
Investment professionals recommend building a portfolio diversified with stocks and bonds to help achieve your long-term financial goals. Regardless of whether that diversification strategy leads you to invest in two mutual funds or twelve, PIMCO Total Return Fund can be the foundation of your portfolio's bond holdings. The Fund invests primarily in an intermediate-term portfolio of investment grade securities - a combination that offers investors an attractive risk/reward profile.

Proven Investment Process
PIMCO Total Return Fund is different from most other bond funds because it focuses on income and capital appreciation, rather than income alone. In fact, since inception, the Fund has realized over 20% of its total return from capital appreciation. This total return approach is backed by active portfolio management within a long-term framework.

Expert Management
As measured by assets under management, PIMCO is one of the largest investment advisors in the country. Among PIMCO's clients are many of the 100 largest U.S. corporations. PIMCO founder Bill Gross manages the Fund. Mr. Gross is widely acknowledged as one of the country's premier bond managers. In fact, Morningstar has named Bill Gross and his fixed-income team as their "Fixed-Income Manager of the Year" an unprecendented three times, in 1998, 2000 and 2007.

The top-down investment process begins with our annual secular forum where we develop a 3- to 5-year outlook for the global economy and interest rates. Quarterly meetings are then held to discuss how the outlook applies to upcoming 3- to 12-month periods and to forecast specific influencing factors, including interest rate volatility, yield curve movements and credit trends. Taken together, these sessions set the basic portfolio parameters, including duration, yield-curve positioning, sector weightings and credit quality. Bottom-up strategies, including credit analysis, quantitative research and individual issue selection, are then meshed with the top-down strategies to add value. We may at times use futures to replicate bond positions.** This strategy can offer the opportunity to outperform physical bond securities due to the relative pricing of the futures contracts and PIMCO's active management of the collateral backing the futures.

** Futures may also be used to manage the Fund portfolio's overall duration and sector exposure.

Bill Gross, CFA, is a founder and Managing Director of PIMCO. He began his investment career in 1969 and is widely regarded as the world's foremost fixed income authority.

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.