What is StocksPLUS®?

StocksPLUS, a unique and innovative equity management strategy introduced by PIMCO in 1986, is designed to outperform a given benchmark equity index and, at the same time, provide a very similar risk level to that of the benchmark. Typically referred to as an “enhanced index” strategy, StocksPLUS seeks to provide the best of what passive indexing and active management each attempt to deliver.

Similar to most passive index strategies, the equity market exposure in a StocksPLUS portfolio is designed to be identical to that of the benchmark index. However, unlike passive index strategies, StocksPLUS endeavors to provide investors with excess returns.

What makes StocksPLUS unique? The strategy combines PIMCO’s expertise in global fixed-income management with the merits of its “best-of-both worlds” construction, which entails obtaining the equity exposure via derivatives that are collateralized by a fixed income portfolio. Because the fixed income portfolio tends to have both a low correlation to equities and a focus on capital preservation, the combination gives StocksPLUS the potential to mitigate the volatility of the equity exposure amid changing market conditions.

Disclosures

Past performance is not a guarantee or reliable indicator of future results. All investments contain risk and may lose value. Investing in the bond market is subject to risks, including market, interest rate, issuer, credit, inflation risk, and liquidity risk. The value of most bonds and bond strategies are impacted by changes in interest rates. Bonds and bond strategies with longer durations tend to be more sensitive and volatile than those with shorter durations; bond prices generally fall as interest rates rise, and the current low interest rate environment increases this risk. Current reductions in bond counterparty capacity may contribute to decreased market liquidity and increased price volatility. Bond investments may be worth more or less than the original cost when redeemed. Equities may decline in value due to both real and perceived general market, economic and industry conditions. Investing in foreign-denominated and/or -domiciled securities may involve heightened risk due to currency fluctuations, and economic and political risks, which may be enhanced in emerging markets. Investing in non-U.S.