PIMCO Absolute Return

Strategy IV

Fund Investment Objectives

The PARS strategies seek to produce absolute returns by expressing PIMCO's top long and short investment ideas across all sectors of developed and developing country fixed income and currency markets. The ideas that are implemented in PARS replicate the same alpha ideas used in PIMCO's long only Total Return and Global strategies. Whereas these traditional strategies will underweight a particular risk that PIMCO does not like versus their indices, the PARS strategies will instead short that same risk. PARS IV will generally target 4X the degree of that long or short view in order to try to achieve a return in line with the stated objective of Libor + 6-9% (before fees). These top-down themes are then complemented with bottom-up and relative value implementation ideas from PIMCO's extensive team of global portfolio managers and sector specialists.