Fund Description

The fund invests at least 65% of total assets in a diversified portfolio of fixed income instruments of varying maturities, including U.S. and non-U.S. bonds and debt securities, and may use forwards and derivatives such as options, futures, and swaps. Average portfolio duration normally ranges from one to three years. It will not invest in the securities of any non-governmental issuer determined by PIMCO to be engaged principally in the manufacture of alcoholic beverages, tobacco products or military equipment, the operation of gambling casinos, the production or distribution of adult entertainment materials, the oil industry (including extraction, production, and refining), or the production or distribution of coal and coal fired generation. It invests primarily in investment grade securities, may hold up to 10% high yield, up to 30% in foreign-currency securities with net foreign currency exposure normally limited to 20%, and up to 10% economically tied to emerging markets. It may invest without limitation in derivatives and mortgage- or asset-backed securities, may engage in when-issued trades and short sales, and may invest up to 10% in preferred securities.