The PCM Provident Agency Fund invests in MBS (Agency MBS) tranches guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae (collectively, the Agencies), which the Investment Manager and the Sub-Advisor identify as having good risk/reward characteristics. The portfolio may allocate up to 25% of assets to non-Agency MBS. The Fund is focused on building a diverse portfolio with strong cash flows, and employs both buy and hold and some moderate trading of portfolio inventory. While a portion of risk on each position is offset with positions in inversely related instruments, the portfolio is also hedged utilizing the fixed income cash and futures markets. Leverage is limited to long positions of no more than 150% of the Fund's equity.