Past performance is not a guarantee or a reliable indicator of future results. Investing in the bond market is subject to certain risks including market, interest-rate, issuer, credit, and inflation risk. The strategy may invest all of its assets in high-yield, lower-rated, securities which involve greater risk than higher-rated securities. Investing in non-U.S. securities involves heightened risk due to currency fluctuations, and economic and political risks, which may be enhanced in emerging markets.  Derivatives may involve certain costs and risks such as liquidity, interest rate, market, credit, management and the risk that a position could not be closed when most advantageous. Investing in derivatives could lose more than the amount invested.

The Diversified Income Index was created by PIMCO and is the return of the following indices: 33% Global Investment Grade Credit, 33% Global High Yield, 33% Emerging Markets.  The inclusion of different funds or adjustment of the weighting by PIMCO may change the value of the index.  The Index is a hypothetical representation that is used as a benchmark and should not be used as an asset allocation model.  The Index is rebalanced monthly.  The Diversified Income Index is not a PIMCO product and is used for illustrative purposes only.  It does not represent the returns of any particular investment, and does not reflect actual trading, liquidity constraints, fees and other costs. It is not possible to invest directly in an unmanaged index.

This material has been distributed for educational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product.  No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission of Pacific Investment Management Company LLC, 840 Newport Center Drive, Newport Beach, CA  92660. ©2008, PIMCO.