On October 7, 2008, PIMCO announced that it will participate in the U.S. Department of the Treasury’s Temporary Guarantee Program for Money Market Funds (the “TTG Program”). The TTG Program insures shares held by money market fund investors as of the close of business on September 19, 2008, against loss in the event that a participating money market fund’s net asset value (NAV) per share falls below $0.995. If the number of shares an investor holds fluctuates over the period, the investor will be covered for either the number of shares held as of the close of business on September 19, 2008 or the current amount, whichever is less.

It is important to note that PIMCO believes PIMCO Money Market Fund is not in danger of “breaking the buck” (i.e., trading below a $1 NAV) for the following reasons:

• PIMCO Money Market Fund has little to no exposure to the issuers that have contributed to performance problems with other money market funds.
• PIMCO’s investment philosophy emphasizes risk management in money market cash strategies.
• PIMCO employs a very experienced team of portfolio managers to oversee PIMCO Money Market Fund.

No assurances can be offered about the stability of the Fund's future net asset value, and the TTG program is not assured to be extended beyond its initial three-month period. Current and future portfolio holdings are subject to risk.

It is clear that money market funds in general have recently been suffering from historic dislocations, which is why PIMCO decided to participate in this guarantee program. Because this environment makes it difficult for all to trade, principal preservation and liquidity are more important than ever, which makes now the time to focus on the return of principal rather than a return on principal.

Investors should note the following details of the Treasury Department’s guarantee program:

• The TTG Program covers only those money market fund shares held as of September 19, 2008. An increase in the number of shares an investor holds after the close of business on September 19, 2008 will not be guaranteed.
• Funds will pay a small fee for the Treasury Department’s temporary guarantee of those holdings; PIMCO estimates this to be 0.01% of assets under management.
• Should PIMCO Money Market Fund’s NAV fall below $0.995, and should the Fund’s board elect to liquidate the Fund, the program would make eligible investors whole with respect to the lesser of their balance on September 19, 2008, or their balance as of the liquidation date.
• The TTG Program will run for an initial three-month period, after which the Treasury Department will re-examine whether it is needed.
• Should the TTG Program be continued after its initial three-month period, PIMCO will reassess its participation.
• If a customer closes his or her fund account with a fund or broker dealer, any future investment in the fund will not be guaranteed.

For more information, please click here to read the Allianz Global Investors prospectus supplement, or call your financial advisor.