Fund Description

The fund was incepted in July 2003 and is managed by Pacific Investment Management Company, LLC. The fund seeks to maximize total return consistent with prudent investment management. The fund invests, under normal circumstances at least 65% of its total assets in a diversified portfolio of fixed income instruments of varying maturities. The fund invests substantially all of its assets in high yield securities rated below investment grade subject to a maximum of 10% of its total assets in securities rated below B by Moody's or by S&P or, if unrated, determined by PIMCO to be of comparable quality. The fund may invest up to 20% of its total assets in securities denominated in foreign currencies, and beyond this limit in U.S. dollar-denominated securities of foreign issuers. The fund normally hedges at least 75% of its exposure to foreign currency to reduce the risk of loss due to fluctuations in currency exchange rates. The fund declares its dividends daily and pays them monthly. Capital gains, if any, are distributed annually.