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Strategy Overview

While emerging market currencies have not been immune to the current bout of global risk aversion, the fundamental improvements undertaken by emerging nations over the past decade have enabled them to weather the current tumult with far greater market confidence than in the past. Local currency denominated investments in these countries allow investors to capture high real local interest rates and attractive interest rate differentials as compared to U.S. dollar interest rates. In addition, as the emerging economies remain well-positioned for further fundamental improvements, investors in this strategy may benefit from an appreciation of these currencies, especially in an environment of increasing secular pressure on the U.S. dollar. Currency exposure can also provide important portfolio diversification benefits due to low correlations with other asset classes.

PIMCO’s Emerging Markets Currency Strategy invests primarily in the currencies of, and fixed income instruments denominated in the currencies of, developing markets. PIMCO considers a developing market to be any non-U.S. country, excluding those countries that have been classified by the World Bank as high-income OECD economies (the current per capita Gross National Income (GNI) cut off level is defined by the World Bank as $11,906. In addition, PIMCO may consider additional countries as emerging market countries, based on a broader assessment on their development stage).

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Disclosures

Past performance is not a guarantee or a reliable indicator of future results. All investments contain risk and may lose value. Investing in the bondmarket is subject to certain risks including market, interest-rate, issuer, credit, and inflation risk. Investing in foreign denominated and/or domiciledsecurities may involve heightened risk due to currency fluctuations, and economic and political risks, which may be enhanced in emerging markets. Currencyrates may fluctuate significantly over short periods of time and may reduce the returns of a portfolio. PIMCO strategies utilize derivatives which mayinvolve certain costs and risks such as liquidity, interest rate, market, credit, management and the risk that a position could not be closed when mostadvantageous. Investing in derivatives could lose more than the amount invested. There is no guarantee that this investment strategy will work under allmarket conditions and each investor should evaluate their ability to invest for a long-term especially during periods of downturn in the market.Diversification does not ensure against loss.

This material contains the current opinions of the manager and such opinions are subject to change without notice. This material has been distributed forinformational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy or investmentproduct.