Fund Description

The fund seeks total return by investing under normal circumstances at least 65% of total assets in a diversified portfolio of fixed income instruments of varying maturities, which may be represented by forwards or derivatives such as options, futures contracts, or swap agreements. Fixed income instruments include bonds, debt securities and similar instruments issued by various U.S. public- or private-sector entities. The average portfolio duration of the fund normally varies within two years (plus or minus) of the portfolio duration of the securities comprising the Bloomberg U.S. Aggregate Index, as calculated by PIMCO. It invests only in investment grade U.S. dollar-denominated securities of U.S. issuers. It may invest without limitation in derivatives and in mortgage- or asset-backed securities, transact when-issued or forward, engage in short sales, and use techniques such as buy backs or dollar rolls; up to 10% may be in preferred securities.