Past performance is not a guarantee or a reliable indicator of future results.
All investments contain risk and may lose value. Investing in the bond market is subject to risks, including market, interest rate, issuer, credit,
inflation risk, and liquidity risk. The value of most bonds and bond strategies are impacted by changes in interest rates. Bonds and bond strategies with
longer durations tend to be more sensitive and volatile than those with shorter durations; bond prices generally fall as interest rates rise, and the
current low interest rate environment increases this risk. Current reductions in bond counterparty capacity may contribute to decreased market liquidity
and increased price volatility. Bond investments may be worth more or less than the original cost when redeemed. Corporate debt securities are subject to
the risk of the issuer’s inability to meet principal and interest payments on the obligation and may also be subject to price volatility due to factors
such as interest rate sensitivity, market perception of the creditworthiness of the issuer and general market liquidity. The credit quality of a particular
security or group of securities does not ensure the stability or safety of the overall portfolio.
This paper contains hypothetical analysis based on a set of assumptions that may or may not develop over time. Results shown may not be
attained and should not be construed as the only possibilities that exist. Different weightings in the asset allocation illustration will produce different
results. Actual results will vary and are subject to change with market conditions. There is no guarantee that results will be achieved. The analysis
reflected in this information is based upon data at time of analysis. Forecasts, estimates, and certain information contained herein are based upon
proprietary research and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product.
PIMCO routinely reviews, modifies, and adds risk factors to its proprietary models. Due to the dynamic nature of factors affecting markets, there is no
guarantee that simulations will capture all relevant risk factors or that the implementation of any resulting solutions will protect against loss. All
investments contain risk and may lose value. Simulated risk analysis contains inherent limitations and is generally prepared with the benefit of hindsight.
Realized losses may be larger than predicted by a given model due to additional factors that cannot be accurately forecasted or incorporated into a model
based on historical or assumed data.
The correlation of various indexes or securities against one another or against inflation is based upon data over a certain time period. These correlations
may vary substantially in the future or over different time periods that can result in greater volatility.
This material contains the opinions of the authors but not necessarily those of PIMCO and such opinions are subject to change without notice. This material
has been distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular security,
strategy or investment product. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed. No part of this
material may be reproduced in any form, or referred to in any other publication, without express written permission. PIMCO is a trademark of Allianz Asset
Management of America L.P. in the United States and throughout the world. ©2016, PIMCO.