Fund Description

The fund invests, under normal circumstances, at least 80% of assets in a diversified portfolio of fixed income securities issued or guaranteed by the U.S. Government, its agencies or government-sponsored enterprises, which may be represented by forwards or derivatives such as options, futures or swaps. Other assets may be invested in other fixed income instruments. It normally maintains a minimum average duration of eight years and expects a dollar-weighted average maturity of more than 10 years. Investments in fixed income instruments are limited to investment grade U.S. dollar-denominated securities of U.S. issuers that are rated at least A by Moody's (or equivalently by S&P or Fitch) or, if unrated, determined by PIMCO to be of comparable quality; additionally, the fund may invest up to 10% of total assets in securities rated A and up to 25% in securities rated Aa (or equivalents/unrated comparable), and these limits do not apply to securities issued or guaranteed by the U.S. Government, its agencies or government-sponsored enterprises. It may use derivatives, mortgage- or asset-backed securities, when-issued trades, dollar rolls, buy backs, and short sales, and may invest up to 10% in preferred securities.