PIMCO Global Credit

Opportunity Strategy

Fund Investment Objectives

The PIMCO Global Credit Opportunity Fund (GCOF) is a market-neutral credit strategy that targets high absolute returns with limited volatility and low correlation to most market betas. We launched the strategy in 2006 to capture PIMCO's best ideas across the global credit markets in an unconstrained framework. GCOF has flexibility to take both long and short positions in various credit markets, including global investment grade corporate debt, high yield bonds, bank loans, emerging market sovereign and corporate debt, and a broad range of asset-backed securities. The strategy hedges residual macro risks in an effort to ensure general market neutrality, but also has the ability to exploit short-term broad credit market dislocations. This flexibility enables GCOF to identify alpha opportunities independent of market conditions. The primary sources of potential returns are bottom-up credit strategies including, but not limited to, relative value trades across: Credit sectors and industries - Sovereign and corporate issuers - Parts of an issuer capital structure - Tranches within mortgage, ABS, CDO and other structured products - Maturities within an issuer's credit curve - Currency of issue for multi-currency issuers - Cash vs. CDS basis - Opportunistic, distressed and event-driven strategies. These strategies draw on the expertise of PIMCO's global team of over 110 credit and securitized portfolio managers and analysts to take advantage of structural inefficiencies and market mispricings. By focusing on multiple credit relative value strategies the strategy seeks to minimize return volatility and dependence on market betas. Diversification across global credit markets, an explicit focus on risk management and an investment program targeting relative value trades and general market neutrality allow GCOF to seek high absolute returns with limited volatility and low correlation to most risk factors