• Seeks to deliver maximum long-term total return potential
• Employs an actively managed, multi-sector approach, investing in a broad range of global fixed-income securities
• Allows manager to invest according to PIMCO’s market views, without benchmark constraints or significant sector/instrument limitations
• Provides access to PIMCO’s extensive fixed income resources and expertise

Flexible Approach

PIMCO Unconstrained Bond Fund is not tethered to benchmark-specific guidelines and the Fund has only moderate sector or instrument limitations. This flexibility permits PIMCO to more fully express its active views on the fixed income market. This flexibility differentiates the Fund from traditional core bond funds, which are generally limited in terms of how much they can vary allocations relative to a fixed income benchmark.

Beyond Traditional Core Bond Fund

The Fund seeks maximum long-term return while also offering some of the traditional benefits of a core bond fund – capital preservation potential, liquidity and diversification. Beyond that, the Fund’s more flexible investment approach provides the opportunity to enhance return potential and manage risk through diversification.

PIMCO’s Expertise

PIMCO has been managing fixed-income securities for more than 30 years and is widely recognized as one of the world’s premier bond managers. As measured by assets under management, PIMCO is one of the largest investment advisors in the country, with a client list that includes many of the largest companies in the United States. The Fund will be governed by PIMCO’s disciplined investment process and its secular outlook.

The Fund's investment process starts with PIMCO's annual secular forum at which the firm develops its 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 firm's basic views on duration, yield-curve positioning, sector weighting and credit quality. Bottom-up strategies, including credit analysis, quantitative research and individual issue selection are provided by the sector specialists.

The Fund's investment approach may lead to concentrated exposure in areas of the bond market that entail greater risks. For example, the Fund may invest up to 40% of its total assets in below-investment-grade securities, which carry a higher degree of credit risk, and may be speculative and more volatile. The Fund may also investment without limitation in securities denominated in foreign currencies and in U.S. dollar-denominated securities of foreign issuers, and can assume up to 35% exposure in non-U.S. currency. The Fund also has the ability to invest up to 50% of its total assets in securities and instruments tied to emerging market countries. These non-U.S. investments entail specialized risks such as political and economic risks and the risk of currency fluctuations. The Fund may also invest all of its assets in derivative instruments, such as options, futures contracts or swap agreements.

Mr. Dialynas is a Managing Director, portfolio manager, and a senior member of PIMCO's investment strategy group. He joined PIMCO in 1980. He holds a bachelor’s degree in economics from Pomona College, and holds an MBA in finance from The University of Chicago Graduate School of Business.

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.