Building blocks for investment portfolio

PIMCO’s Japan Core Strategy invests not only in Japanese bonds but also bonds issued overseas by Japanese issuers. Risk is controlled to a similar level to that of a benchmark, such as NOMURA-BPI Aggregate, but the portfolio draws on a broad range of investment opportunities in pursuit of higher alpha, or excess returns above the benchmark, than if invested solely in Japanese bonds. This strategy can provide the building block for portfolios where Japanese bonds are positioned as the core asset.

Characteristics of Japan Core Strategy

Consistent Investment Philosophy and Approach

Global Portfolio Management Capability

Disclosures

Target returns are calculated based on the assumption that all investment tools that are normally used with the strategy are available. Target returns should not be construed as an estimate or promise of results that a client portfolio may achieve.

The value of assets under management will be affected by, and fluctuate based upon, movements in prices of securities in the portfolio, financial market conditions, interest rates, and credit risk arising from changes in the financial condition of issuers of securities in the portfolio, among others. Where investments are made in foreign currency denominated assets, the value of the assets will also be affected by movements in foreign exchange rates. All profits and losses resulting from investments are for the account of the investor. Thus, there is no guarantee that the principal amount of the investment will be preserved, or that a certain return will be realized; rather, the investment could suffer a loss.

The fee charged for our activities related to the financial instruments business will vary depending on the investment trust acquired or the investment advisory agreement entered into, and thus these materials do not set forth specific fee amounts or their calculation methodologies.