Fund Description

The fund is designed for investors who want professional managers to make asset allocation decisions. It uses a three-step approach: setting a target allocation, adding relative value strategies, and using hedging techniques to manage risk. It invests through combinations of affiliated and unaffiliated funds and/or direct holdings in fixed income instruments, equity securities, forwards and derivatives, with exposure tied to at least three countries. It typically allocates 20%-80% of net assets to equity-related investments (net of shorts) and up to 25% of total assets to commodity-related investments, including exposure obtained through a Cayman subsidiary and through investment in certain Underlying PIMCO Funds; the subsidiary is advised by PIMCO and primarily invests in commodity-linked derivative instruments backed by a portfolio of Fixed Income Instruments. It may invest without limitation in foreign-currency securities, high yield securities, and emerging market exposures, trade on a when-issued or forward basis, and engage in short sales. When making allocation decisions, PIMCO considers various qualitative and quantitative factors relating to the U.S. and non-U.S. economies and markets, and has the flexibility to reallocate the fund's assets among affiliated or unaffiliated funds or invest directly based on its ongoing analyses of the global economy and financial markets; while these analyses are performed daily, material shifts in investment exposures typically take place over longer periods of time.