Pimco Files For PIMCO Emerging Markets Aggregate U.S.$ Denominated Bond Index Fund ETF

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Pimco Files For PIMCO Emerging Markets Aggregate U.S.$ Denominated Bond Index Fund ETF

March 12th, 2010

Pimco has filed paperwork with the SEC for a PIMCO Emerging Markets Aggregate U.S.$ Denominated Bond Index Fund ETF. The PIMCO Emerging Markets Aggregate U.S.$ Denominated Bond Index Fund will seek to provide total return that closely corresponds, before fees and expenses, to the total return of The BofA Merrill Lynch US Emerging Markets Sovereign & Credit Plus Index.

PRINCIPAL INVESTMENT STRATEGIES

The Fund seeks to achieve its investment objective by investing under normal circumstances at least 80% of its total assets (exclusive of collateral held from securities lending) in the component securities (“Component Securities”) of The BofA Merrill Lynch US Emerging Markets Sovereign & Credit Plus IndexSM (the “Underlying Index”). The Fund may invest the remainder of its assets in Fixed Income Instruments that are not Component Securities, but which PIMCO believes will help the Fund track its Underlying Index, as well as in cash and investment grade, liquid short-term instruments, forwards or derivatives, such as options, futures contracts or swap agreements, and shares of affiliated bond funds. The Fund may invest in securities of any rating or may invest in unrated securities. The average portfolio duration of this Fund will closely correspond to the duration of its Underlying Index, which as of [ ] was [ ] years.

The Underlying Index is an unmanaged index comprised of U.S. dollar denominated emerging market and crossover sovereign, quasi-government and corporate debt securities with at least 1 year remaining term to final maturity. As of [ ], there were [ ] issues in the Underlying Index. Sovereign debt securities included in the Underlying Index have a BBB1 or lower foreign currency long-term sovereign debt rating (based on an average of the ratings of Moody’s, S&P and Fitch), a fixed, floating or fixed-to-floating rate coupon and a minimum amount outstanding of $250 million. Quasi-government and corporate debt securities included in the Underlying Index have a country of risk rated BBB1 or lower (based on an average of Moody’s, S&P and Fitch foreign currency long term sovereign debt ratings), a fixed coupon schedule and a minimum amount outstanding of $100 million for below investment grade securities and $250 million for investment grade securities. Issuers with a country of risk that is not rated, or that is rated “D” or “SD” by one or several rating agencies, are included in the Underlying Index, but individual non-performing securities are removed. Original issue zero coupon bonds, debt issued simultaneously in the Eurobond and U.S. domestic bond markets, 144A securities and corporate pay-in-kind securities qualify for inclusion in the Underlying Index. Callable perpetual securities qualify for inclusion in the Underlying Index provided they are at least one year from the first call date. Fixed-to-floating rate securities also qualify provided they are callable within the fixed rate period and are at least one year from last call prior to the date the bond transitions from a fixed to a floating rate security. The Underlying Index is capitalization-weighted and the composition of Component Securities is updated monthly. Cash flows from bond payments that are received during the month are retained in the Underlying Index, without earning reinvestment income, until removal at the end of the month as part of the rebalancing. It is not possible to invest directly in the Underlying Index. The Underlying Index does not reflect deductions for fees, expenses or taxes.

PIMCO uses an indexing approach in managing the Fund’s investments. The Fund employs a representative sampling strategy in seeking to achieve its investment objective. In using this strategy, PIMCO seeks to invest in a combination of Component Securities and other instruments such that the combination effectively provides exposure to the Underlying Index. In using a representative sampling strategy, the Fund may not track its Underlying Index with the same degree of accuracy as a fund that replicates each of the Component Securities of the Underlying Index. Unlike many investment companies, the Fund does not attempt to outperform the index the Fund tracks. An indexing approach may eliminate the chance that the Fund will substantially outperform its Underlying Index but also may reduce some of the risks of active management. Indexing seeks to achieve lower costs by keeping portfolio turnover low in comparison to actively managed investment companies.

The Fund may invest in derivative instruments, such as options, futures contracts or swap agreements. The Fund may invest in U.S. dollar-denominated securities of foreign issuers, including securities and instruments economically tied to emerging market countries. The Fund may purchase and sell securities on a when-issued, delayed delivery or forward commitment basis. The Fund may, without limitation, seek to obtain market exposure to the securities in which it primarily invests by entering into a series of purchase and sale contracts or by using other investment techniques (such as buy backs). The “total return” sought by the Fund consists of income earned on the Fund’s investments, plus capital appreciation, if any, which generally arises from decreases in interest rates.

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