annual report - national bank of abu dhabi · to secretary henry paulson and then ......

Mr. Kashkari is a managing director and head of global equities in the Newport Beach office. He also serves on PIMCOs Business Assessment Committee, and he is president of PIMCO Equity Series Trust. Previously, he was head of new investment initiatives for the firm. Prior to joining PIMCO in 2009, Mr. Kashkari served in the U.S. Treasury Department from 20062009, first as senior advisor to Secretary Henry Paulson and then as Assistant Secretary of the Treasury. In the latter role, he established and led the Office of Financial Stability and oversaw the Troubled Assets Relief Program (TARP). Before joining the Treasury Department, Mr. Kashkari was a vice president at Goldman Sachs in San Francisco, advising technology companies on financings and mergers and acquisitions.

Annual Report31 December 2013

Your Global Investment Authority

PIMCO Funds: Global Investors Series plc

An open-ended investment company with variable capital and segregated liability between Funds incorporated with limited liability under the Companies Acts, 1963 to 2013 with registered number 276928 and authorised by the Central Bank of Ireland as an undertaking for collective investment in transferable securities pursuant to the European Communities (Undertakings for Collective Investment in Transferable Securities [UCITS]) Regulations, 2011 (as amended).

PIMCO Funds: Global Investors Series plc Annual Report 31 December 2013

GENERAL CHARACTERISTICS

Fund Type:UCITS

Number of Funds offered in Company:51 Funds

Classes of Shares offered in Company:Institutional ClassInstitutional CAD (Hedged) ClassInstitutional CAD (Unhedged) ClassInstitutional CHF (Hedged) ClassInstitutional CHF (Unhedged) ClassInstitutional DKK (Hedged) ClassInstitutional EUR ClassInstitutional EUR (Hedged) ClassInstitutional EUR (Partially Hedged) ClassInstitutional EUR (Unhedged) ClassInstitutional GBP ClassInstitutional GBP (Hedged) ClassInstitutional GBP (Unhedged) ClassInstitutional ILS (Hedged) ClassInstitutional ILS (Unhedged) ClassInstitutional NOK (Hedged) ClassInstitutional NZD (Hedged) ClassInstitutional SEK (Hedged) ClassInstitutional SGD (Hedged) ClassInstitutional USD (Unhedged) ClassInvestor ClassInvestor CHF (Hedged) ClassInvestor CHF (Unhedged) ClassInvestor EUR (Hedged) ClassInvestor EUR (Unhedged) ClassInvestor GBP (Hedged) ClassInvestor NOK (Hedged) ClassInvestor SGD (Hedged) ClassInvestor USD (Unhedged) ClassAdministrative ClassAdministrative CHF (Hedged) ClassAdministrative EUR (Hedged) ClassAdministrative EUR (Unhedged) ClassAdministrative GBP (Hedged) ClassAdministrative SEK (Hedged) ClassAdministrative SGD (Hedged) ClassClass H InstitutionalClass EClass E CHF (Hedged)Class E CNH (Hedged)Class E EUR (Hedged)Class E EUR (Partially Hedged)Class E EUR (Unhedged)Class E GBP (Hedged)Class E HKD (Unhedged)Class E SGD (Hedged)Class E USD (Unhedged)Class G Retail EUR (Hedged)Class G Retail EUR (Partially Hedged)Class G Retail EUR (Unhedged)Class M RetailClass M Retail AUD (Hedged)Class M Retail HKD (Unhedged)Class M Retail SGD (Hedged)Class RClass R EUR (Hedged)Class R GBP (Hedged)Class R GBP (Unhedged)Class R USD (Unhedged)Class S CHF (Hedged)Class S CHF (Unhedged)Class S EUR (Hedged)Class S EUR (Unhedged)Class S GBP (Hedged)Class ZClass Z USD (Unhedged)

Types of Shares:Within each Class, the Company may issue Income Shares (Shares which distributeincome), Accumulation Shares (Shares which accumulate income) and Income IIShares (Shares which distribute enhanced yield).

Net Assets (Amounts in thousands):93,941,250 (USD129,446,346).

Minimum Holding:The Administrative, Institutional, Investor, Class G Institutional, Class HInstitutional Classes and Class S require a minimum holding of USD500,000 or itsequivalent in the relevant Share Class currency in aggregate, with a minimum ofUSD100,000 or its equivalent in the relevant Share Class currency per Fund.Class E, Class G Retail, Class M Retail and Class R Shares require a minimumholding of USD5,000 or its equivalent in the relevant Share Class currency inaggregate per Fund. Class Z Shares require a minimum holding of USD20 millionor its equivalent in the relevant Share Class currency in aggregate per Fund. Pacific

Investment Management Company LLC, at its sole discretion, is authorised to waivethe minimum initial subscription, minimum additional subscription, and minimumholding requirements as set forth in the current Prospectus.

Dealing Day:In relation to a Fund such Business Day or Business Days as shall be specified in therelevant Supplement for that Fund and determined by the Directors from time to timeand notified to Shareholders in advance provided that there shall be at least oneDealing Day every fortnight.

Funds Functional Currency:USD ($), except the UK Corporate Bond, UK Long Term Corporate Bond,UK Real Return Fund, UK Sterling Long Average Duration and UK Sterling LowAverage Duration Funds which are denominated in British Pound Sterling (), and thePIMCO EqS Pathfinder Europe, Euro Short-Term, Euro Bond, Euro Credit, EuroIncome Bond, Euro Long Average Duration, Euro Low Duration, Euro Real Return andEuro Ultra-Long Duration which are denominated in Euro ().

Hong Kong Authorisation:The following Funds are not authorised in Hong Kong, and are not available to HongKong residents:

PIMCO Asia Local Bond FundPIMCO Capital Securities FundPIMCO Credit Absolute Return FundDiversified Income Duration Hedged FundPIMCO Dividend and Income Builder FundEmerging Markets Corporate Bond FundPIMCO Emerging Multi-Asset FundEM Fundamental Index StocksPLUS FundPIMCO EqS Dividend FundPIMCO EqS Emerging Markets FundPIMCO EqS Pathfinder FundPIMCO EqS Pathfinder Europe FundEuro Credit FundEuro Income Bond FundEuro Long Average Duration FundEuro Low Duration FundEuro Real Return FundEuro Short-Term FundEuro Ultra-Long Duration FundGlobal Advantage FundGlobal Advantage Real Return FundGlobal Bond Ex-US FundGlobal Fundamental Index StocksPLUS FundGlobal Multi-Asset FundInflation Strategy FundSocially Responsible Emerging Markets Bond FundStocksPLUS FundStrategic Income FundUK Corporate Bond FundUK Long Term Corporate Bond FundUK Real Return FundUK Sterling Long Average Duration FundUK Sterling Low Average Duration FundUnconstrained Bond FundUS Fundamental Index StocksPLUS FundUS Government Money Market Fund

Singapore AuthorisationThe following Funds are not recognised by the Monetary Authority of Singapore underthe Securities and Futures Act, Chapter 289 of Singapore, and hence are not availableto the retail public in Singapore:

PIMCO Asia Local Bond FundPIMCO Capital Securities FundPIMCO Credit Absolute Return FundPIMCO Emerging Multi-Asset FundEM Fundamental Index StocksPLUS FundPIMCO EqS Emerging Markets FundEuro Credit FundEuro Income Bond FundEuro Long Average Duration FundEuro Low Duration FundEuro Real Return FundEuro Short-Term FundEuro Ultra-Long Duration FundGlobal Fundamental Index StocksPLUS FundInflation Strategy FundSocially Responsible Emerging Markets Bond FundStrategic Income FundUK Corporate Bond FundUK Long Term Corporate Bond FundUK Real Return FundUK Sterling Long Average Duration FundUK Sterling Low Average Duration FundUS Fundamental Index StocksPLUS FundUS Government Money Market Fund

Reuters Page:PAFPPLC

Registered trademark or trademark of Pacific Investment Management Company LLC in the United States and/or other countries.

Table of Contents

Page

Chairmans Letter 2Important Information About the Funds 3Benchmark Descriptions 59Statements of Assets and Liabilities 66Statements of Operations 84Statements of Changes in Net Assets 102Portfolio of Investments and Assets & Significant Changes in

Portfolio Composition 108Notes to Financial Statements 585Directors Report 686Independent Auditors Report 689Custodians Report 690Reference Information 691Glossary 694General Information 695

FUND FundSummaryPortfolio ofInvestmentsand Assets

PIMCO Asia Local Bond Fund 4 108PIMCO Capital Securities Fund 5 112CommoditiesPLUS Strategy Fund 6 117PIMCO Credit Absolute Return Fund 7 126Diversified Income Fund 8 137Diversified Income Duration Hedged Fund 10 158PIMCO Dividend and Income Builder Fund 11 172Emerging Asia Bond Fund 12 180Emerging Local Bond Fund 13 188Emerging Markets Bond Fund 14 200Emerging Markets Corporate Bond Fund 15 213Emerging Markets Currency Fund 16 221PIMCO Emerging Multi-Asset Fund 17 230EM Fundamental Index StocksPLUS Fund 18 244PIMCO EqS Dividend Fund 19 249PIMCO EqS Emerging Markets Fund 20 255PIMCO EqS Pathfinder Fund 21 262PIMCO EqS Pathfinder Europe Fund 22 270Euro Bond Fund 23 274Euro Credit Fund 24 283Euro Income Bond Fund 25 290Euro Long Average Duration Fund 26 298Euro Low Duration Fund 27 305Euro Real Return Fund 28 310Euro Short-Term Fund 29 315Euro Ultra-Long Duration Fund 30 321Global Advantage Fund 31 328Global Advantage Real Return Fund 32 344Global Bond Fund 33 353Global Bond Ex-US Fund 35 374Global Fundamental Index StocksPLUS Fund 36 384Global High Yield Bond Fund 37 389Global Investment Grade Credit Fund 38 402Global Multi-Asset Fund 40 425Global Real Return Fund 41 442High Yield Bond Fund 42 453Income Fund 43 463Inflation Strategy Fund 44 476Low Average Duration Fund 45 483Socially Responsible Emerging Markets Bond Fund 46 494StocksPLUS Fund 47 502Strategic Income Fund 48 509Total Return Bond Fund 49 513UK Corporate Bond Fund 51 529UK Long Term Corporate Bond Fund 52 536UK Real Return Fund 53 543UK Sterling Long Average Duration Fund 54 549UK Sterling Low Average Duration Fund 55 555Unconstrained Bond Fund 56 560US Fundamental Index StocksPLUS Fund 57 579US Government Money Market Fund 58 583

Chairmans Letter

Dear Shareholder:

We are pleased to provide you with the Annual Report for the PIMCO Funds: Global Investors Series plc covering the twelve-month reporting period ended 31 December 2013. On the following pages, please find specific details as to each Fundsinvestment performance and a discussion of those factors that affected performance.

The past twelve months were marked by ongoing periods of heightened market volatility brought on by uncertainty aroundcentral bank monetary and fiscal policy, geopolitical concerns, and a slower than hoped for rebound in the global economy.Following a particularly bumpy third quarter, however, financial markets completed the year along a relatively smoother path.Federal Reserve (Fed) Chairman Ben Bernanke laid the groundwork in September, when he clarified the Feds commitment tomaintain its quantitative easing (QE) bond purchase program of US Treasuries and mortgages, while maintaining the FederalFunds Rate within a zero-bound range. The nomination of Janet Yellen to the Chairmanship further helped to reassure investorsthat the Fed would be committed to the continuation of their accommodative policies.

Towards the latter part of December 2013, the Fed announced that beginning in January 2014 it intends to gradually exit itsbond-buying program, by reducing it from $85 billion to $75 billion spread equally across mortgage and US Treasury purchases.As expected, in order to anchor the front-end of the yield curve, the Federal Open Market Committee (FOMC) provided evengreater assurances that the policy rate would remain near a zero-bound range until signs of sustainable growth are more broadlyevident in the US economy. While the markets had months to prepare for the announcement, equities and other risk assets soaredin reaction to the news while bond markets saw yields drift higher.

As an update, in the financial markets over the twelve-month reporting period:

In terms of economic growth, only the US showed significant strength among developed economies (especially towards thelatter part of the reporting period). Europe showed modest signs of improvement while Japan slowed. Within the emergingmarkets (EM), some EM economies struggled with reduced investor flows, high inflation and political unrest. The EuropeanCentral Bank (ECB) reduced their main policy rate (or the interest rate at which it lends money to banks) by 25 basis pointsto 0.25%, likely due to their concern over lower than expected inflation and a weak global growth outlook. The Bank ofEngland (BOE) unanimously voted to leave its main policy rate unchanged amid a pickup in economic growth andexpectations that this would lead to an eventual decline in the UK unemployment rate.

Global inflation-linked bonds (ILBs) generally posted negative returns for the period amid weak global demand for inflationprotection. However, certain countries saw marginal support for their ILB markets, including the UK and Italy. UK ILBs, forexample, benefited early in the year from the decision to leave the calculation methodology for the Retail Price Index (RPI)reference index intact. Italian ILBs outperformed other Eurozone countries given renewed risk appetite following the end ofturbulence surrounding the situation in Cyprus and signs of a more stable political environment in the country. The JapaneseILB market was also positive for the year as inflation reached the highest level in over five years, largely the result of a trio ofreforms led by Prime Minister Shinzo Abe in seeking to boost Japans economy. The Barclays World Government Inflation-Linked Bond USD Hedged Index declined 5.51%. Diversified commodities, as measured by the Dow Jones-UBS CommodityIndex Total Return, declined 9.52%.

EM external debt underperformed US Treasuries during the year and was impacted by the second quarter sell-off. Country-specific stories and the risk-on market sentiment following the Fed tapering announcement supported lower spreads in thefourth quarter, particularly in December. EM local assets underperformed US Treasuries during the period as weaker EMcurrencies and increases in local yields weighed on overall returns.

US Treasury yields rose to their highest level in late December 2013 as investors reacted to the Feds announcement that itwould begin the reduction of its asset purchases starting in January 2014. This decision was made on the back of improvingeconomic data, which included a lower unemployment rate, respectable monthly job reports, and improving housingfundamentals. The benchmark ten-year US Treasury note yielded 3.03% at the end of the reporting period, as compared to1.76% on 31 December 2012.

Developed market equities posted strong performance in 2013, despite a period marked by considerable volatility anduncertainty around central bank policy. Global equities, as represented by the MSCI All Country World Index Net USD andMSCI World Index, returned 22.80% and 26.68%, respectively. US equities, as measured by the S&P 500 Index, returned32.39%. EM equities, as represented by the MSCI Emerging Markets Index (Net Dividends in USD), declined 2.60%. EMequities underperformed developed market equities due to declining earnings growth and rising interest rates in the USwhich placed pressure on local EM currencies.

If you have questions regarding the PIMCO Funds: Global Investors Series plc, please contact the Administrator on +353 (1) 603 6200.

Thank you again for the trust you have placed in us. We value your trust and will continue to work diligently to meet your broadinvestment needs.

Sincerely,

Joseph V. McDevittChairman15 April 2014

2 PIMCO FUNDS: GLOBAL INVESTORS SERIES PLC

Important Information About the Funds

This material is authorised for use only when preceded or accompanied by the current PIMCO Funds: Global Investors Series plcProspectus. Investors should consider the investment objectives, risks, charges and expenses of these Funds carefully before investing. Thisand other information is contained in the Prospectus. Please read the Prospectus carefully before you invest or send money.

We believe that bond funds have an important role to play in a well diversified investment portfolio. It is important to note, however, that in anenvironment where interest rates may trend upward, rising rates will negatively impact the performance of most bond funds, and fixed-incomesecurities held by a fund are likely to decrease in value. The price volatility of fixed-income securities can also increase during periods of risinginterest rates, resulting in increased losses to a fund. Bond funds and individual bonds with a longer duration (a measure of the expected life ofa security) tend to be more sensitive to changes in interest rates, usually making them more volatile than securities or funds with shorterdurations. The longer-term performance of most bond funds has benefited from capital gains in part resulting from an extended period ofdeclining interest rates. In the event interest rates increase, these capital gains should not be expected to recur.

The Funds may be subject to various risks in addition to those described above. Some of these risks may include, but are not limited to, thefollowing: real rate risk, derivative risk, small company risk, foreign security risk, high-yield security risk and specific sector investment risks. TheFunds may use derivative instruments for hedging purposes or as part of an investment strategy. Use of these instruments may involve certaincosts and risks such as liquidity risk, interest rate risk, market risk, credit risk, management risk and the risk that a fund could not close out aposition when it would be most advantageous to do so. Funds investing in derivatives could lose more than the principal amount invested inthese instruments. Investing in foreign securities may entail risk due to foreign economic and political developments; this risk may be enhancedwhen investing in emerging markets. High-yield bonds typically have a lower credit rating than other bonds. Lower rated bonds generallyinvolve a greater risk to principal than higher rated bonds. Smaller companies may be more volatile than larger companies and may entail morerisk. Concentrating investments in individual sectors may add additional risk and volatility compared to a diversified fund.

Past performance is no guarantee of future results. On each individual fund summary page in this Report, the Total Return InvestmentPerformance table measures performance assuming that all dividend and capital gain distributions were reinvested. Investment return andprincipal value will fluctuate so that Fund shares, when redeemed, may be worth more or less than their original cost. Returns do not reflectthe deduction of taxes that a shareholder would pay (i) on Fund distributions or (ii) the redemption of Fund shares. Current performance maybe lower or higher than the performance data quoted. All Fund returns are net of fees and expenses.

An investment in a Fund is not a deposit in a bank and is not guaranteed or insured by any government agency. The value of and income fromShares in the Fund may go up or down and you may not get back the amount you have invested in the Funds.

PIMCO Funds: Global Investors Series plc is distributed by PIMCO Europe Ltd, 11 Baker Street, London W1U 3AH, England; PIMCO Asia PteLtd, 501 Orchard Road #09-03, Wheelock Place, Singapore 23880 and PIMCO Australia Pty Ltd, Level 19, 363 George Street, Sydney, NewSouth Wales 2000 Australia; www.pimco.com.

Annual Report 31 December 2013 3

PIMCO Asia Local Bond Fund

Total Return Net of Fees and Expenses for the Period Ended 31 December 20131

1 Year ClassInception

Classes denominated in USD

Institutional Class Accumulation Shares (Inception 18-Jun-2013) -3.90%

Class E Accumulation Shares (Inception 18-Jun-2013) -4.20%

Class Z Income Shares (Inception 18-Jun-2013) -3.44%

HSBC Asian Local Bond Index -3.42%2

1 Annualised performance for periods of at least one year, otherwise cumulative.2 Benchmark inception performance is calculated from the inception date of the oldest share class.

Portfolio Insights

The PIMCO Asia Local Bond Fund seeks topreserve the real value of capital throughprudent investment management. The Fundwill be managed actively and willpredominantly invest in a diversified portfolioof Asian local currency denominated FixedIncome Instruments (as defined in theProspectus). The Fund seeks to achieve itsobjective by investing across the globalopportunity set of securities utilizingPIMCOs investment approach and its globaltrading platform. The Fund invests at least80% of net assets at all times in investmentsin Asian local currency denominated FixedIncome Instruments (which may be issued byissuers outside of Asia). The Fund may investup to 25% of its assets in Fixed IncomeInstruments that are rated Baa3 by Moodysor BBB- by S&P (or, if unrated, determined bythe Investment Advisors to be of comparablequality) subject to a minimum ratingcategory of B3 by Moodys or B- by S&P (or,if unrated, determined by the InvestmentAdvisors to be of comparable quality).

The Fund commenced operations on18 June 2013.

An overweight to the Indonesian Rupiahduring most of the reporting perioddetracted from performance as the currencysold off and underperformed.

An underweight to the Chinese Yuan andoffshore Renminbi, which outperformed,detracted from performance.

An underweight to local Thai interest rates,which outperformed, detractedfrom performance.

An underweight to Indonesian interest rates,which rose following a sell-off throughoutthe reporting period, benefited performance.

A portfolio-level underweight to local Asianinterest rates, which rose over the reportingperiod, benefited performace.

An underweight to the Indian Rupee, whichdepreciated sharply during the reportingperiod, benefited performance.


PIMCO Capital Securities Fund

Return Net of Fees and Expenses for the Period Ended 31 December 20131



Institutional Class Accumulation Shares (Inception 31-July-2013) 7.02%

Administrative Class Accumulation Shares (Inception 9-Aug-2013) 5.97%

Administrative Class Income Shares (Inception 9-Aug-2013) 5.86%

Class E Accumulation Shares (Inception 28-Oct-2013) 2.70%

Class M Income II Shares (Inception 23-Dec-2013) 0.10%

Class Z Income Shares (Inception 31-Oct-2013) 2.53%

3 Month USD LIBOR Index 0.11%2

Classes denominated in CHF

Institutional CHF (Hedged) Class Accumulation Shares (Inception 9-Aug-2013) 5.91%

Classes denominated in EUR

Institutional EUR (Hedged) Class Accumulation Shares (Inception 9-Aug-2013) 6.12%

Institutional EUR (Hedged) Class Income Shares (Inception 9-Aug-2013) 6.04%

Administrative EUR (Hedged) Class Accumulation Shares (Inception 9-Aug-2013) 5.76%

Class E EUR (Hedged) Accumulation Shares (Inception 28-Oct-2013) 2.70%

Classes denominated in GBP

Institutional GBP (Hedged) Class Accumulation Shares (Inception 9-Aug-2013) 6.20%

Institutional GBP (Hedged) Class Income Shares (Inception 31-July-2013) 7.09%

Classes denominated in SGD

Class M Retail SGD (Hedged) Income II (Inception 23-Dec-2013) 0.10%


Portfolio Insights

The PIMCO Capital Securities Fund seeks toprovide focused exposure to attractivelypriced Capital Securities (as defined in theProspectus) together with maximum totalreturn, consistent with preservation of capitaland prudent investment management, byinvesting in an actively managed portfolio ofFixed Income Instruments (as defined in theProspectus) and other securities of which atleast 80% will be invested in CapitalSecurities in accordance with the policies setout in the Funds Prospectus.

The Fund commenced operations on31 July 2013.

Exposure to contingent convertible securitiescontributed to performance as thesesecurities posted positive returns during thereporting period.

Exposure to Tier 1 bonds contributed toperformance as these securities postedpositive returns during the reporting period.

Exposure to lower Tier 2 bonds contributedto performance as these securities postedpositive returns during the reporting period.

Buy protection on CDX senior andsubordinated financials detracted fromperformance as spreads tightened during thereporting period.


CommoditiesPLUS Strategy Fund

Return Net of Fees and Expenses for the Period Ended 31 December 20131



Institutional Class Accumulation Shares (Inception 31-Aug-2006) -9.52% -1.10%

Investor Class Accumulation Shares (Inception 11-Aug-2011) -10.00% -8.02%

Class E Accumulation Shares (Inception 21-Sep-2007) -10.43% -3.15%

Class E Income Shares (Inception 31-Oct-2006) -10.49% -1.81%

Class R Accumulation Shares (Inception 30-Nov-2012) -9.81% -10.84%

Class Z Income Shares (Inception 18-Nov-2008) -8.96% 5.66%

Dow Jones-UBS Commodity Index Total Return -9.52% -3.02%2


Institutional EUR (Hedged) Class Accumulation Shares (Inception 08-Jun-2010) -10.09% 1.65%

Institutional EUR (Hedged) Class Income II Shares (Inception 01-Oct-2013) -0.37%

Class E EUR (Hedged) Accumulation Shares (Inception 07-Mar-2012) -10.94% -6.84%

Dow Jones-UBS Commodity Index Total Return (EUR Hedged) -9.83%


Institutional GBP (Hedged) Class Income Shares (Inception 17-May-2011) -9.53% -7.86%

Dow Jones-UBS Commodity Index Total Return (GBP Hedged) -9.31%


Portfolio Insights

The CommoditiesPLUS Strategy Fund seeksto achieve its investment objective byinvesting under normal circumstances incommodity index-linked derivativeinstruments backed by a portfolio of activelymanaged global Fixed Income Instruments(as defined in the Prospectus).

A short position in US nominal duration (orsensitivity to changes in nominal interestrates) contributed to performance as ratessold off during the reporting period.

Exposure to securitized issues, whichoutperformed the Funds commodity indexduring the reporting period, contributedto performance.

An overweight to Australian nominalduration detracted from performance as theAustralian yield curve sold off during thereporting period.

An overweight to US real duration (orsensitivity to changes in real interest rates)detracted from performance as real yieldsrose during the reporting period.


PIMCO Credit Absolute Return Fund




Institutional Class Accumulation Shares (Inception 14-Oct-2011) 1.08% 5.21%

Administrative Class Accumulation Shares (Inception 19-Jun-2013) 0.10%

Class E Accumulation Shares (Inception 21-Dec-2012) 0.20% 0.19%

3 Month USD LIBOR Index 0.28% 0.37%2


Institutional CHF (Hedged) Class Accumulation Shares (Inception 17-Dec-2012) 0.70% 0.77%

3 Month USD LIBOR (Hedged to CHF) -0.10%


Institutional EUR (Hedged) Class Accumulation Shares (Inception 14-Oct-2011) 0.90% 5.04%

Institutional EUR (Hedged) Class Income II Shares (Inception 01-Oct-2013) 1.17%

Administrative EUR (Hedged) Class Accumulation Shares (Inception 18-Jun-2013) -0.20%

Class E EUR (Hedged) Accumulation Shares (Inception 21-Dec-2012) 0.00%

3 Month Euribor 0.21%


Institutional GBP (Hedged) Class Accumulation Shares (Inception 14-Oct-2011) 1.26% 5.42%

Class R GBP (Hedged) Income Shares (Inception 30-Nov-2012) 1.27% 1.92%

3 Month GBP LIBOR Index 0.51%


Portfolio Insights

The PIMCO Credit Absolute Return Fundseeks to provide a positive total return acrossa variety of market environments, consistentwith preservation of capital and prudentinvestment management, by investing atleast 80% of its net assets in a diversifiedportfolio of Fixed Income Instruments (asdefined in the Prospectus). The Fund seeks apositive total return rather than a returnwhich is greater than a particular benchmarkand aims to generate absolute returnsirrespective of whether markets are trendingup or down.

Long exposure to the building materialssector benefited performance as the sectorposted positive returns during thereporting period.

Long exposure to airline companies, whichposted positive returns during the reportingperiod, benefited performance.

Long exposure to the gaming sector, whichposted positive returns during the reportingperiod, benefited performance.

A long US duration (or sensitivity to changesin market interest rates) exposure detractedfrom performance as US interest rates roseduring the reporting period.

A long exposure to the pipelines sectordetracted from performance as the sectorposted negative returns during thereporting period.


Diversified Income Fund




Institutional Class Accumulation Shares (Inception 30-Jun-2005) -0.70% 7.44%

Institutional Class Income Shares (Inception 08-Sep-2008) -0.67% 8.85%

Investor Class Accumulation Shares (Inception 30-Apr-2013) -3.70%

Investor Class Income Shares (Inception 30-Apr-2013) -3.72%

Administrative Class Income Shares (Inception 21-Jul-2011) -1.16% 5.34%

Class H Institutional Accumulation Shares (Inception 08-Jun-2011) -0.84% 5.54%

Class H Institutional Income Shares (Inception 08-May-2013) -3.96%

Class E Accumulation Shares (Inception 11-Sep-2006) -1.55% 6.73%

Class E Income Shares (Inception 31-Jul-2006) -1.59% 6.86%

Class M Retail Income Shares (Inception 30-Nov-2010) -1.52% 5.57%

Class R Accumulation Shares (Inception 30-Nov-2012) -0.79% 0.00%

Class R Income Shares (Inception 30-Nov-2012) -0.76% 0.03%

Class M Retail Income II (Inception 23-Dec-2013) -0.10%

Class Z Accumulation Shares (Inception 21-Feb-2012) 0.00% 6.43%

1/3 each-Barclays Global Aggregate Credit Component, BofA Merrill Lynch Global High Yield,BB-B Rated Constrained, JPMorgan EMBI Global; All USD Hdgd -0.35% 6.95%2

Classes denominated in AUD

Class M Retail AUD (Hedged) Income Shares (Inception 19-Dec-2012) 0.80% 1.07%

1/3 each-Barclays Global Aggregate Credit Component, BofA Merrill Lynch Global High Yield,BB-B Rated Constrained, JPMorgan EMBI Global; All AUD Hdgd 1.87%

Classes denominated in CAD

Institutional CAD (Hedged) Class Accumulation Shares (Inception 09-Dec-2011) 0.00% 8.28%

1/3 each-Barclays Global Aggregate Credit Component, BofA Merrill Lynch Global High Yield,BB-B Rated Constrained, JPMorgan EMBI Global; All CAD Hdgd 0.29%


Institutional CHF (Hedged) Class Accumulation Shares (Inception 24-Jun-2011) -1.22% 5.15%

Institutional CHF (Hedged) Class Income Shares (Inception 31-Aug-2012) -1.17% 2.06%

1/3 each-Barclays Global Aggregate Credit Component, BofA Merrill Lynch Global High Yield,BB-B Rated Constrained, JPMorgan EMBI Global; All CHF Hdgd -0.84%


Institutional EUR (Hedged) Class Accumulation Shares (Inception 14-Feb-2007) -1.00% 7.38%

Institutional EUR (Hedged) Class Income Shares (Inception 17-Oct-2007) -0.98% 7.79%


Investor EUR (Hedged) Class Accumulation Shares (Inception 05-Jul-2007) -1.38% 7.60%

Investor EUR (Hedged) Class Income Shares (Inception 15-Feb-2013) -1.42%

Administrative EUR (Hedged) Class Accumulation Shares (Inception 20-Jul-2007) -1.46% 7.47%

Administrative EUR (Hedged) Class Income Shares (Inception 08-Aug-2011) -1.48% 5.68%

Class E EUR (Hedged) Accumulation Shares (Inception 03-Jul-2007) -1.85% 7.09%

Class E EUR (Hedged) Income Shares (Inception 16-Oct-2009) -1.85% 7.24%

Class G Retail EUR (Hedged) Income Shares (Inception 30-Mar-2012) -1.88% 4.12%

Class R EUR (Hedged) Accumulation Shares (Inception 30-Nov-2012) -1.19% -0.37%

1/3 each-Barclays Global Aggregate Credit Component, BofA Merrill Lynch Global High Yield,BB-B Rated Constrained, JPMorgan EMBI Global; All EUR Hdgd -0.63%


Institutional GBP (Hedged) Class Accumulation Shares (Inception 16-May-2006) -0.65% 8.09%

Institutional GBP (Hedged) Class Income Shares (Inception 14-Feb-2006) -0.64% 7.86%

Administrative GBP (Hedged) Class Income Shares (Inception 21-Jul-2011) -1.08% 5.47%

Class R GBP (Hedged) Income Shares (Inception 30-Nov-2012) -0.74% 0.05%

1/3 each-Barclays Global Aggregate Credit Component, BofA Merrill Lynch Global High Yield,BB-B Rated Constrained, JPMorgan EMBI Global; All GBP Hdgd -0.21%

Portfolio Insights

The Diversified Income Fund seeks to achieveits investment objective by investing undernormal circumstances at least two thirds ofits total assets in a diversified portfolio ofFixed Income Instruments (as defined in theProspectus) of varying maturities.

An underweight to emerging markets (EM)spread duration benefited performance asspreads widened over the reporting period.

A tactical allocation to non-Agencymortgages benefited performance as thesector posted positive performance over thereporting period.

An underweight to high yield spreadduration detracted from performance asspreads tightened over the reporting period.

An overweight to investment grade financialsbenefited performance as the sectoroutperformed the broader credit market overthe reporting period.

A tactical allocation to Brazilian local rateswas a significant detractor from performanceas Brazilian local rates rose sharply over thereporting period.


Diversified Income Fund (Cont.)

Total Return Net of Fees and Expenses for the Period Ended 31 December 20131 (Cont.)


Classes denominated in SEK

Institutional SEK (Hedged) Class Accumulation Shares (Inception 31-Mar-2006) -0.15% 7.68%

1/3 each-Barclays Global Aggregate Credit Component, BofA Merrill Lynch Global High Yield,BB-B Rated Constrained, JPMorgan EMBI Global; All SEK Hdgd 0.32%


Class E SGD (Hedged) Income Shares (Inception 03-Jan-2013) -1.90%

1/3 each-Barclays Global Aggregate Credit Component, BofA Merrill Lynch Global High Yield,BB-B Rated Constrained, JPMorgan EMBI Global; All SGD Hdgd



Diversified Income Duration Hedged Fund




Institutional Class Accumulation Shares (Inception 31-May-2011) 3.83% 6.12%

Class E Accumulation Shares (Inception 16-Aug-2013) 3.00%

Class E Income Shares (Inception 31-May-2011) 2.99% 5.31%

Class R Income Shares (Inception 30-Nov-2012) 3.71% 4.37%

Class Z Income Shares (Inception 31-May-2011) 4.54% 6.82%

Blend of the following three indices at constant .25 year duration: 1/3 each-Barclays GlobalAggregate Credit Component, BofA Merrill Lynch Global High Yield BB-B RatedConstrained, JPMorgan EMBI Global; All USD Hdgd 2.99% 4.05%2


Institutional EUR (Hedged) Class Accumulation Shares (Inception 16-Aug-2011) 3.57% 7.64%


Class E EUR (Hedged) Accumulation Shares (Inception 11-Aug-2011) 2.69% 7.25%

Class E EUR (Hedged) Income Shares (Inception 07-May-2013) 0.09%

Blend of the following three indices at constant .25 year duration: 1/3 each-Barclays GlobalAggregate Credit Component, BofA Merrill Lynch Global High Yield BB-B RatedConstrained, JPMorgan EMBI Global; All EUR Hdgd 2.87%


Institutional GBP (Hedged) Class Accumulation Shares (Inception 23-Aug-2011) 4.00% 8.84%

Institutional GBP (Hedged) Class Income Shares (Inception 22-Jan-2013) 3.11%

Blend of the following three indices at constant .25 year duration: 1/3 each-Barclays GlobalAggregate Credit Component, BofA Merrill Lynch Global High Yield BB-B RatedConstrained, JPMorgan EMBI Global; All GBP Hdgd 2.87%


Class E SGD (Hedged) Income Shares (Inception 18-Sep-2013) 2.19%

Blend of the following three indices at constant .25 year duration: 1/3 each-Barclays GlobalAggregate Credit Component, BofA Merrill Lynch Global High Yield BB-B RatedConstrained, JPMorgan EMBI Global; All SGD Hdgd


Portfolio Insights

The Diversified Income Duration HedgedFund seeks to achieve its investmentobjective by investing at least 80% of its netassets in a diversified portfolio of variableand floating-rate Fixed Income Instruments(as defined in the Prospectus), Fixed IncomeInstruments with a duration of less than orequal to one year, and fixed rate FixedIncome Instruments.

An underweight to emerging markets (EM)spread duration benefited performance asspreads widened over the reporting period.

A tactical allocation to non-Agencymortgages benefited performance as thesector posted positive performance over thereporting period.

An overweight to investment grade creditspread duration benefited performance asspreads tightened over the reporting period.

An overweight to investment grade financialsbenefited performance as the sectoroutperformed the broader credit market overthe reporting period.

A tactical allocation to Brazilian local rateswas a significant detractor from performanceas Brazilian local rates rose sharply over thereporting period.


PIMCO Dividend and Income Builder Fund




Institutional Class Income Shares (Inception 14-Dec-2011) 16.49% 16.06%

Class E Income Shares (Inception 30-Apr-2012) 14.98% 12.93%

Class Z Income Shares (Inception 14-Dec-2011) 17.54% 17.05%

75% MSCI All Country World Index Net USD/25% Barclays Global Aggregate(USD Unhedged) Index 15.99% 15.84%

MSCI All Country World Index Net USD 22.80% 20.96%2


Class E CHF (Hedged) Accumulation Shares (Inception 13-Feb-2013) 10.40%

75% MSCI All Country World Index Net/25% Barclays Global Aggregate Index; AllCHF Hedged

MSCI All Country World Index Net (CHF Hedged)


Institutional EUR (Hedged) Class Income Shares (Inception 31-Jul-2012) 17.78% 16.18%

Class E EUR (Hedged) Income Shares (Inception 31-Jul-2012) 16.21% 14.57%

Investor EUR (Hedged) Income Shares (Inception 08-Jul-2013) 7.57%

75% MSCI All Country World Index Net/25% Barclays Global Aggregate Index; AllEUR Hedged 17.77%

MSCI All Country World Index Net (EUR Hedged) 24.37%


Class R GBP (Unhedged) Income Shares (Inception 30-Nov-2012) 13.94% 13.92%

75% MSCI All Country World Index Net/25% Barclays Global Aggregate Index; AllGBP Unhedged 13.83%

MSCI All Country World Index Net (GBP Unhedged) 20.52%


Portfolio Insights

The PIMCO Dividend and Income BuilderFund seeks to provide current income thatexceeds the average yield on global stocks,to provide a growing stream of income pershare over time, and to provide long-termcapital appreciation, by investing in adiversified portfolio of income-producinginvestments, and will typically invest at least50% of its assets in Equity Securities (asdefined in the Prospectus) and equity-relatedsecurities. The Funds investments in equityand equity-related securities include commonand preferred stock (and securitiesconvertible into, or that PIMCO expects to beexchanged for, common or preferred stock),as well as securities issued by real estateinvestment trusts, master limitedpartnerships and other equity trusts anddepositary receipts.

During the past twelve months, the Fundpaid ordinary quarterly dividends of 41.3cents per share on its Institutional shareclass. The dividend per share was slightlylower for the other share classes, to accountfor varying class specific expenses. TheFunds net asset value increased by $1.41per share (from $11.27 to $12.68) over thereporting period, bringing the twelve-monthtotal return to 16.49%.

Security selection within equities detractedfrom performance. The largest singledetractor from relative performance was theFunds position in Gold Fields, the SouthAfrican precious metals miner.

The Funds equity sector positioningdetracted from relative performance.Specifically, the Funds underweight to theconsumer discretionary sector detracted fromrelative performance.

The largest single contributor to relativeperformance was the Funds holding inWalgreens, the US retail drugstore operator.

The Funds fixed income allocationperformed positively, driven mainly by havinghigher income than the fixed incomebenchmark and by security selection.


Emerging Asia Bond Fund




Institutional Class Accumulation Shares (Inception 03-Jun-2011) -3.65% 1.12%

Institutional Class Income Shares (Inception 22-Jul-2011) -3.64% 1.13%

Class E Income Shares (Inception 01-Jun-2010) -4.41% 7.44%

[90% JPMorgan Asia Credit Index (JACI) + 10% 1 month USD LIBOR] * [JPMorgan EmergingLocal Markets Index (ELMI+)] / [3 month USD LIBOR] -3.49% 7.95%2


Institutional EUR (Unhedged) Class Accumulation Shares (Inception 01-Oct-2010) -7.87% 3.66%

Institutional EUR (Unhedged) Class Income II Shares (Inception 01-Oct-2013) -1.32%

Class E EUR (Unhedged) Accumulation Shares (Inception 03-Jun-2011) -8.58% 2.51%

[90% JPMorgan Asia Credit Index (JACI) + 10% 1 month USD LIBOR] * [JPMorgan EmergingLocal Markets Index (ELMI+)] / [3 month USD LIBOR]. (EUR Unhedged) -7.66%

Classes denominated in HKD

Class M Retail HKD (Unhedged) Income Shares (Inception 01-Mar-2011) -4.40% 2.30%

[90% JPMorgan Asia Credit Index (JACI) + 10% 1 month USD LIBOR] * [JPMorgan EmergingLocal Markets Index (ELMI+)] / [3 month USD LIBOR]. (HKD Unhedged) -3.45%


Portfolio Insights

The Emerging Asia Bond Fund seeks tomaximise total return, consistent withprudent investment management. The Fundinvests in a combination of Fixed IncomeInstruments (as defined in the Prospectus) ofissuers that are economically tied to Asia ex-Japan countries with emerging securitiesmarkets, related derivatives (as further setout in the Prospectus) on such securities andemerging market currencies. Fixed IncomeSecurities purchased by the Fund will berated at least Caa by Moodys or CCC by S&P(or if unrated, determined by the InvestmentAdvisors to be of comparable quality).

An underweight to Indonesian sovereignbonds, which sold off sharply during thesecond half of the reporting period,benefited performance.

A portfolio-level underweight to US interestrate duration benefited performance as USTreasury yields rose during thereporting period.

A portfolio-level underweight to sovereignspreads, which widened over the reportingperiod, benefited performance.

An overweight to Indonesian quasi-sovereigns detracted from performance asIndonesian bonds were the worst-performingbonds in the credit index over thereporting period.

A portfolio-level underweight to corporatespreads, which tightened over the reportingperiod, detracted from performance.

Allocations to the Brazilian Real, whichdepreciated and underperformed the Fundsbenchmark index, detractedfrom performance.


Emerging Local Bond Fund




Institutional Class Accumulation Shares (Inception 11-Dec-2007) -10.73% 4.94%

Institutional Class Income Shares (Inception 18-Apr-2008) -10.77% 4.55%

Investor Class Accumulation Shares (Inception 18-Aug-2010) -11.10% 1.20%

Class E Accumulation Shares (Inception 19-Nov-2008) -11.58% 9.67%

Class E Income Shares (Inception 08-Jul-2010) -11.69% 1.85%


Class R Income Shares (Inception 30-Nov-2012) -10.85% -8.22%


JPMorgan Government Bond Index-Emerging Markets Global Diversified Index (Unhedged) -8.98% 5.46%3

Classes denominated in CAD

Institutional CAD (Unhedged) Class Accumulation Shares (Inception 09-Dec-2011) -4.77% 2.73%

JPMorgan Government Bond Index-Emerging Markets Global Diversified Index(CAD Unhedged) -2.87%


Institutional CHF (Unhedged) Class Accumulation Shares (Inception 19-Oct-2012) -13.25% -10.36%

Investor CHF (Unhedged) Class Accumulation Shares (Inception 02-Mar-2011) -13.55% -0.85%

Class S CHF (Unhedged) Accumulation Shares (Inception 28-Oct-2013) -6.50%

JPMorgan Government Bond Index-Emerging Markets Global Diversified Index(CHF Unhedged) -11.56%


Institutional EUR (Unhedged) Class Accumulation Shares (Inception 16-Apr-2010)2 -14.58% 1.89%

Institutional EUR (Unhedged) Class Income Shares (Inception 23-Jun-2010) -14.59% -0.17%

Investor EUR (Unhedged) Class Accumulation Shares (Inception 02-Mar-2011) -14.94% 0.67%

Administrative EUR (Unhedged) Class Accumulation Shares (Inception 30-Sep-2010) -15.05% -0.37%

Class E EUR (Unhedged) Accumulation Shares (Inception 02-Jul-2009) -15.46% 5.53%

Class G Retail EUR (Unhedged) Income Shares (Inception 14-Dec-2010) -15.40% -0.96%

Class S EUR (Unhedged) Accumulation Shares (Inception 02-Dec-2013) -1.50%

JPMorgan Government Bond Index-Emerging Markets Global Diversified Index(EUR Unhedged) -12.91%


Institutional GBP (Unhedged) Class Accumulation Shares (Inception 27-Jun-2008) -12.40% 8.86%

Institutional GBP (Unhedged) Class Income Shares (Inception 14-Aug-2008) -12.38% 7.43%

JPMorgan Government Bond Index-Emerging Markets Global Diversified Index(GBP Unhedged) -10.67%

Classes denominated in ILS

Institutional ILS (Unhedged) Class Accumulation Shares (Inception 20-Jun-2013) -5.30%

JPMorgan Government Bond Index-Emerging Markets Global Diversified Index(ILS Unhedged)

1 Annualised performance for periods of at least one year, otherwise cumulative.2 Institutional EUR (Unhedged) Class Accumulation Shares opened initially on 13 June 2008, closed on 21 April 2009 and

re-opened on 16 April 2010.3 Benchmark inception performance is calculated from the inception date of the oldest share class.

Portfolio Insights

The Emerging Local Bond Fund seeks tomaximise total return, consistent withprudent investment management. The Fundwill normally invest at least 80% of its assetsin Fixed Income Instruments (as defined inthe Prospectus) denominated in currencies ofcountries with emerging securities markets,which may be represented by forwards orderivatives such as options, futurescontracts, or swap agreements.

An underweight to Indonesian local interestrates contributed to performance as theIndonesian central bank raised its policy rate.

An underweight to the Turkish Lira and toTurkish local rates added to returns aspolitical uncertainty contributed to thecountrys underperformance.

An overweight to Brazilian local ratesdetracted from performance as Brazilian localrates rose over the reporting period.

An underweight to duration (or sensitivity tochanges in market interest rates) in Russiadetracted from returns as Russiaoutperformed the broader index over thereporting period.

An underweight to the Hungarian Forint andduration in Hungary detracted fromperformance as Hungary outperformed thebroader index over the reporting period.


Emerging Markets Bond Fund




Institutional Class Accumulation Shares (Inception 31-Jul-2001) -6.27% 11.24%

Institutional Class Income Shares (Inception 13-Dec-2001) -6.25% 10.23%

Investor Class Accumulation Shares (Inception 25-Apr-2002) -6.61% 9.27%

Investor Class Income Shares (Inception 18-Apr-2002) -6.62% 9.21%

Administrative Class Accumulation Shares (Inception 29-May-2003) -6.74% 7.69%

Class H Institutional Accumulation Shares (Inception 17-Oct-2002) -6.45% 10.93%

Class E Accumulation Shares (Inception 31-Mar-2006) -7.10% 6.28%

Class E Income Shares (Inception 28-Oct-2005) -7.05% 6.50%

Class M Retail Income Shares (Inception 30-Nov-2010) -7.11% 4.69%

Class M Retail Income II Shares (Inception 23-Dec-2013) -0.20%


Class R Income Shares (Inception 30-Nov-2012) -6.39% -4.86%

Class Z Accumulation Shares (Inception 21-Feb-2012) -5.66% 4.38%


JPMorgan Emerging Markets Bond Index (EMBI) Global -6.58% 9.78%2

Classes denominated in AUD

Class M Retail AUD (Hedged) Income Shares (Inception 19-Dec-2012) -5.06% -4.44%

JPMorgan EMBI Global (AUD Hedged) -4.82%


Institutional CHF (Hedged) Class Income Shares (Inception 16-Dec-2005) -6.86% 5.54%

JPMorgan EMBI Global (CHF Hedged) -7.15%


Institutional EUR (Hedged) Class Accumulation Shares (Inception 17-Dec-2002) -6.65% 9.49%

Institutional EUR (Hedged) Class Income Shares (Inception 20-Dec-2010) -6.57% 5.85%


Investor EUR (Hedged) Class Accumulation Shares (Inception 04-Aug-2009) -6.96% 8.03%

Investor EUR (Hedged) Class Income Shares (Inception 15-Feb-2013) -6.40%

Class E EUR (Hedged) Accumulation Shares (Inception 31-Mar-2006) -7.47% 5.58%


JPMorgan EMBI Global (EUR Hedged) -6.90%


Institutional GBP (Hedged) Class Accumulation Shares (Inception 05-Feb-2004) -6.23% 8.46%

Institutional GBP (Hedged) Class Income Shares (Inception 30-Dec-2005) -6.33% 7.07%

Class R GBP (Hedged) Income Shares (Inception 30-Nov-2012) -6.37% -4.85%

JPMorgan EMBI Global (GBP Hedged) -6.53%


Class E SGD (Hedged) Accumulation Shares (Inception 15-Feb-2007) -7.15% 4.81%

JPMorgan EMBI Global (SGD Hedged) -6.84%


Portfolio Insights

The Emerging Markets Bond Fund seeks toachieve its investment objective by investingat least 80% of its assets in Fixed IncomeInstruments (as defined in the Prospectus) ofissuers that economically are tied tocountries with emerging securities markets.The Fund is actively managed to maximisetotal return potential and minimise riskrelative to the benchmark.

An underweight to interest rate duration waspositive for performance as interest ratesrose over the reporting period.

An underweight to spread durationcontributed to returns as spreads onemerging market bonds widened over thereporting period.

An overweight to corporate bonds in favourof sovereign bonds in Russia and Mexicobenefited performance as corporatebonds outperformed sovereign bonds inthese countries.

An underweight to Hungary and otherEastern European sovereigns detracted fromreturns as sovereign bonds in these countriesoutperformed during the reporting period.

An underweight to several higher-yieldingemerging market countries detracted fromperformance as they outperformed thebroader market over the reporting period.


Emerging Markets Corporate Bond Fund




Institutional Class Accumulation Shares (Inception 12-Nov-2009) -2.16% 6.83%

Institutional Class Income Shares (Inception 29-Jul-2013) 2.30%

Class E Accumulation Shares (Inception 27-Feb-2012) -3.06% 4.11%

Administrative Class Income Shares (Inception 16-Aug-2012) -2.71% 2.20%

Class M Retail Income Shares (Inception 06-Nov-2012) -3.14% -1.39%

Investor Class Accumulation Shares (Inception 30-Nov-2012) -2.47% -1.20%

Investor Class Income Shares (Inception 30-Nov-2012) -2.69% -1.31%

Class S Accumulation Shares (Inception 18-Oct-2013) -0.10%

Class Z Income Shares (Inception 03-Dec-2009) -1.05% 8.01%

JPMorgan Corporate Emerging Markets Bond Index Diversified (CEMBI) -1.73% 7.60%2


Institutional CHF (Hedged) Class Income Shares (Inception 31-Aug-2012) -2.68% 1.64%

Class E CHF (Hedged) Accumulation Shares (Inception 25-May-2012) -3.62% 4.01%

JPMorgan Corporate Emerging Markets Bond Diversified Index (CHF Hedged) -2.20%


Institutional EUR (Hedged) Class Accumulation Shares (Inception 19-Feb-2010) -2.61% 6.36%


Class E EUR (Hedged) Accumulation Shares (Inception 02-Mar-2010) -3.44% 5.05%


Class S EUR (Hedged) Accumulation Shares (Inception 18-Oct-2013) -0.10%

Investor EUR (Hedged) Class Accumulation Shares (Inception 30-Nov-2012) -2.87% -1.57%

JPMorgan Corporate Emerging Markets Bond Diversified Index (EUR Hedged) -1.99%


Institutional GBP (Hedged) Class Income Shares (Inception 16-Jun-2011) -2.08% 4.57%

Class R GBP (Hedged) Income Shares (Inception 30-Nov-2012) -2.00% -0.67%

JPMorgan Corporate Emerging Markets Bond Diversified Index (GBP Hedged) -1.55%


Portfolio Insights

The Emerging Markets Corporate Bond Fund(formerly named the Emerging Markets andInfrastructure Bond Fund) seeks maximumtotal return, consistent with preservation ofcapital and prudent investmentmanagement, by investing under normalcircumstances at least 80% of its assets inan actively managed diversified portfolioconsisting of Fixed Income Instruments (asdefined in the Prospectus) that areeconomically tied to emerging marketcountries including Fixed Income Instrumentsthat are issued by corporate issuers thatare economically tied to emergingmarket countries.

An underweight to interest rate duration waspositive for performance as interest ratesrose during the reporting period.

An overweight to Russian issuers, especiallybanks, contributed to performance as theseissuers outperformed the broader sector.

A general underweight to Asian issuers,especially in Hong Kong and Korea,detracted from performance as thesesecurities outperformed the broader sectorduring the reporting period.

An overweight to Brazilian issuers detractedfrom performance as these securitieslagged the broader sector amid weakerthan expected macroeconomic growth inthe country.

A modest overweight to Mexicanhomebuilders detracted from performance asthese companies underperformed during thereporting period.


Emerging Markets Currency Fund




Institutional Class Accumulation Shares (Inception 29-Sep-2006) -2.53% 4.23%

Class E Accumulation Shares (Inception 19-Nov-2008) -3.37% 4.65%

Class E Income Shares (Inception 31-Oct-2006) -3.46% 3.05%


Class Z Income Shares (Inception 25-Jul-2012)2 -1.67% 3.00%

JPMorgan Emerging Local Markets Index Plus (Unhedged) -2.04% 4.76%4

JPMorgan Emerging Local Markets Index Plus +Bid (Unhedged) -2.04% 4.49%


Institutional EUR (Unhedged) Class Accumulation Shares (Inception 20-Jan-2010)3 -6.71% 2.40%

Class E EUR (Unhedged) Accumulation Shares (Inception 02-Jul-2009) -7.53% 2.73%

JPMorgan Emerging Local Markets Index Plus (EUR Unhedged) -6.01%

1 Annualised performance for periods of at least one year, otherwise cumulative.2 Class Z Income Shares opened initially on 18 November 2010, closed on 23 July 2012 and re-opened on 25 July 2012.3 Institutional EUR (Unhedged) Class Accumulation Shares opened initially on 13 June 2008, closed on 21 April 2009 and

re-opened 20 January 2010.4 Benchmark inception performance is calculated from the inception date of the oldest share class.

Portfolio Insights

The Emerging Markets Currency Fund(formerly named the Developing LocalMarkets Fund) seeks maximum total return,consistent with preservation of capital andprudent investment management, byinvesting under normal circumstances atleast 80% of its assets in currencies of, orFixed Income Instruments (as defined in theProspectus) denominated in currencies of,emerging markets. The Investment Advisorshave broad discretion to identify countriesthat it considers to qualify as emergingmarkets. The Investment Advisors will selectthe Funds country and currency compositionbased on its evaluation of relative interestrates, inflation rates, exchange rates,monetary and fiscal policies, trade andcurrent account balances, and other specificfactors the Investment Advisors believe to berelevant. The Fund is likely to concentrate itsinvestments in Asia, Africa, the Middle East,Latin America and the emerging countries ofEurope. The Fund may invest in instrumentswhose return is based on the return of anemerging market security such as aderivative instrument, rather than investingdirectly in emerging market securities. Theaverage portfolio duration of this Fund variesbased on the Investment Advisors forecastfor interest rates and, under normal marketconditions, is not expected to exceed twoyears. The Fund may invest all of its assets inhigh yield securities, subject to a maximumof 15% of its assets in securities rated lowerthan B by Moodys or S&P (or, if unrated,determined by the Investment Advisors to beof comparable quality).

An overweight to the Mexican Pesocontributed to returns as the currencyappreciated following structural economicreforms in the country.

An underweight to the Turkish Liracontributed to returns as the currencydepreciated during the reporting period.

An overweight to the Brazilian Realdetracted from returns as the currencyunderperformed during the reporting period.

An underweight to the Hungarian Forintdetracted from returns as the currencywas amongst the best performingemerging market currencies during thereporting period.

An overweight to the South African Randdetracted from returns as the currencyunderperformed during the reporting period.


PIMCO Emerging Multi-Asset Fund




Institutional Class Accumulation Shares (Inception 10-Jun-2011) -5.44% -3.87%

Class Z Income Shares (Inception 07-Jun-2011) -4.17% -3.13%

50% MSCI Emerging Markets Index (Net Dividends in USD), 25% JPMorgan Emerging MarketsBond Index (EMBI) Global, 25% JPMorgan Government Bond Index-Emerging MarketsGlobal Diversified Index (Unhedged) -5.17% 0.31%2


Institutional EUR (Partially Hedged) Class Accumulation Shares (Inception 07-Dec-2011) -8.58% 0.05%

Institutional EUR (Partially Hedged) Class Income Shares (Inception 07-Dec-2011) -8.53% 0.06%

Class E EUR (Partially Hedged) Accumulation Shares (Inception 07-Dec-2011) -9.61% -1.07%

Class G Retail EUR (Partially Hedged) Income Shares (Inception 30-Mar-2012) -9.59% -4.08%

50% MSCI Emerging Markets Index, 25% JPMorgan Government Bond Index-EmergingMarkets Global Diversified Index (Unhedged), 25% JPMorgan Emerging Markets BondIndex (EMBI) Global. (EUR Hedged) -8.32%


Portfolio Insights

The PIMCO Emerging Multi-Asset Fund seeksmaximum total return, consistent withprudent investment management, byinvesting at least 80% of its assets ininvestments economically tied to emergingmarket countries. The Fund will undernormal circumstances typically invest 20% to80% of its total net assets in equity andequity related securities. The Fund may alsogain exposure, though not invest directly, incommodities, up to 25% of net assets, andproperty (as outlined in the Prospectus).

The relative performance of the PIMCOemerging markets equities strategycontributed to relative performance as thisUnderlying PIMCO strategy outperformed itsrespective primary benchmark, the MSCIEmerging Markets Index, over thereporting period.

The relative performance of the PIMCOemerging external debt strategy contributedto relative performance as this UnderlyingPIMCO strategy outperformed its respectiveprimary benchmark, the JPMorgan EMBIGlobal, over the reporting period.

The relative performance of the PIMCOemerging local debt strategy detracted fromrelative performance as this UnderlyingPIMCO strategy underperformed itsrespective primary benchmark, the JPMorganGBI-EM Global Diversified, over thereporting period.

An asset allocation decision to overweightlocal debt negatively contributed to relativeperformance as the asset class, asrepresented by JPMorgan GBI-EM GlobalDiversified, underperformed the Fundsblended benchmark.


EM Fundamental Index StocksPLUS Fund




Institutional Class Accumulation Shares (Inception 03-Sep-2013) 7.40%

Institutional Class Income Shares (Inception 03-Sep-2013) 7.40%

MSCI Emerging Markets Index (Net Dividends in USD) 7.91%2


Institutional EUR (Unhedged) Class Accumulation Shares (Inception 03-Sep-2013) 2.60%

Institutional EUR (Unhedged) Class Income Shares (Inception 03-Sep-2013) 2.50%

Class E EUR (Unhedged) Accumulation Shares (Inception 25-Sep 2013) -3.30%

MSCI Emerging Markets Index (EUR Unhedged)


Institutional GBP (Unhedged) Class Accumulation Shares (Inception 03-Sep-2013) 0.70%

Institutional GBP (Unhedged) Class Income Shares (Inception 03-Sep-2013) 0.70%

MSCI Emerging Markets Index (GBP Unhedged)


Portfolio Insights

The EM Fundamental Index StocksPLUSFund seeks a total return which exceeds thatof its benchmark index, namely the MSCIEmerging Markets Index, by following theInvestment Advisors proprietary portfoliomanagement strategy known asStocksPLUS (which combines an activelymanaged portfolio of Fixed IncomeInstruments with exposure to a notionalportfolio of equity securities which seeksover time to outperform an equity index, inthis case the MSCI Emerging Markets Index).The notional portfolio of equity securities isselected based upon the Enhanced RAFIEmerging Markets Strategy (as furtheroutlined in the Funds Prospectus).

The Fund commenced operations on3 September 2013.

The Funds holdings of equity indexderivatives contributed to performance as theEnhanced RAFI EM Index returned 8.21%versus 7.91% for the MSCI EmergingMarkets Index since the Funds inceptionperiod from 3 September 2013 to31 December 2013.

The Fund benefited from earning a higheryield than the money market interest ratecost associated with equity indexderivatives ownership.

US duration (or sensitivity to changes inmarket interest rates) positioning detractedfrom returns as US Treasury yields broadlyrose during the reporting period.

Long Australian duration positioningdetracted from performance as local swaprates increased over the reporting period.

Long Brazilian duration detracted fromperformance as local swap rates increasedover the reporting period.

Holdings of investment grade and high yieldcorporate bonds contributed to performanceas these holdings outperformed USTreasuries on a duration-adjusted basis.

Exposure to emerging market economiescontributed to performance as thesesecurities outperformed US Treasuries on aduration-adjusted basis.


PIMCO EqS Dividend Fund




Institutional Class Income Shares (Inception 14-Dec-2011) 19.27% 16.92%

Class E Income Shares (Inception 30-Apr-2012) 17.55% 13.48%

Class Z Income Shares (Inception 14-Dec-2011) 20.23% 17.93%

MSCI All Country World Index Net USD2 22.80% 20.96%3


Institutional EUR (Hedged) Class Accumulation Shares (Inception 28-Sep-2012) 20.38% 16.90%

Institutional EUR (Hedged) Class Income Shares (Inception 16-Dec-2011) 20.44% 16.73%


Class E EUR (Hedged) Income Shares (Inception 16-Dec-2011) 18.80% 15.07%

MSCI All Country World Index Net (EUR Hedged) 24.37%


Institutional GBP (Unhedged) Class Income Shares (Inception 30-Nov-2012) 17.02% 17.08%


MSCI All Country World Index Net (GBP Unhedged) 20.52%

1 Annualised performance for periods of at least one year, otherwise cumulative.2 Effective 01 January 2013 the benchmark changed from the MSCI World Index to the MSCI All Country World Index Net

USD. Performance is shown for the MSCI All Country World Index Net USD.3 Benchmark inception performance is calculated from the inception date of the oldest share class.

Portfolio Insights

The PIMCO EqS Dividend Fund seeks toprovide current income that exceeds theaverage yield on global stocks, and toprovide long-term capital appreciation, byinvesting in Fixed Income Instruments (asdefined in the Prospectus) and EquitySecurities (as defined in the Prospectus) andequity-related securities, including commonand preferred stock (and securitiesconvertible into, or that PIMCO expects to beexchanged for, common or preferred stock),as well as securities issued by real estateinvestment trusts, master limitedpartnerships and other equity trusts anddepository receipts.

During the past twelve months, the Fundpaid ordinary quarterly dividends of 38.9cents per share on its Institutional classshares. The dividend per share was slightlylower for the other share classes, to accountfor varying class specific expenses. TheFunds net asset value increased by $1.74per share (from $11.23 to $12.97) over thereporting period, bringing the twelve-monthtotal return to 19.27%.

Security selection detracted fromperformance. The largest single detractorfrom relative performance was the Fundsholding in Gold Fields, the South Africanprecious metals miner.

The Funds sector positioning detracted fromrelative performance. Specifically, the Fundsunderweight to the consumer discretionarysector detracted from relative performance.

The largest single contributor to relativeperformance was the Funds holding inWalgreens, the US retail drugstore operator.


PIMCO EqS Emerging Markets Fund




Institutional Class Accumulation Shares (Inception 22-Mar-2011) -1.46% -4.50%

Class Z Income Shares (Inception 22-Mar-2011) -0.18% -3.29%

MSCI Emerging Markets Index (Net Dividends in USD) -2.60% -1.36%2


Institutional EUR (Unhedged) Class Accumulation Shares (Inception 22-Mar-2011) -5.72% -3.45%

Institutional EUR (Unhedged) Class Income II Shares (Inception 01-Oct-2013) -0.33%

Class E EUR (Unhedged) Accumulation Shares (Inception 22-Mar-2011) -6.90% -4.61%

MSCI Emerging Markets Index (EUR Unhedged) -1.57%


Class R GBP (Unhedged) Income Shares (Inception 30-Nov-2012) -3.36% 0.02%

MSCI Emerging Markets Index (GBP Unhedged) -4.41%


Portfolio Insights

The PIMCO EqS Emerging Markets Fundinvests under normal circumstances at least80% of its net assets in an activelymanaged, diversified portfolio of investmentsthat are economically tied to emergingmarket countries. The Fund will investprimarily in equity and equity-relatedsecurities including common stock, preferredstock, warrants, equity-related exchange-traded funds and securities (such as bonds,P notes, depositary receipts or debentures)which reference or which are convertible orthat the Investment Advisors expect to beconvertible into common or preferred stock.

From a sector perspective, stock selection inthe consumer discretionary and energysectors contributed to relative performance.Holdings of Macau casinos also contributedto performance. Positions in Russian energycompanies were the top contributors toperformance as prices on these stocks roseduring the reporting period.

On the downside, an underweight to theinformation technology sector and stockselection within the materials sectordetracted from returns. Stock selection inIsraeli and Chinese materials companies alsodetracted from performance.

From a country perspective, an allocation toJapan, as well as security selection withinBrazil, added to relative performance.

On the downside, an underweight to Taiwanand an off-benchmark allocation to Israelwere negative for relative performance.Within Taiwan, an underweight to theconsumer discretionary and financials sectorsalso detracted from performance.


PIMCO EqS Pathfinder Fund





Institutional Class Income Shares (Inception 20-May-2010) 18.89% 9.11%

Investor Class Accumulation Shares (Inception 08-Jul-2010) 18.43% 8.39%

Class E Accumulation Shares (Inception 28-May-2010) 17.49% 7.80%

Class E Income Shares (Inception 28-May-2010) 17.49% 7.78%

Class R Accumulation Shares (Inception 30-Nov-2012) 18.61% 18.12%

Class Z Income Shares (Inception 06-Sep-2011) 20.02% 13.85%

MSCI World Index 26.68% 15.52%2


Institutional EUR (Hedged) Class Accumulation Shares (Inception 26-Jul-2010) 20.14% 8.80%


Class E EUR (Hedged) Accumulation Shares (Inception 10-Nov-2010) 18.58% 6.51%

MSCI World (Euro hedged) Index 28.07%



MSCI World Index (GBP Unhedged) 24.32%


Portfolio Insights

The PIMCO EqS Pathfinder Fund seeks toachieve its investment objective primarily byinvesting, under normal circumstances, inEquity Securities (as defined in theProspectus), including common and preferredstock, of issuers which the Investment Advisoris of the view are undervalued and that areeconomically tied to at least three countries(one of which may be the United States). TheFunds bottom-up value investment styleattempts to identify securities that areundervalued by the market in comparison tothe Investment Advisors own determinationof the companys value, taking into accountcriteria such as asset, book value, cash flowand earnings estimates.

An overweight to and security selection in theconsumer staples sector was a significantdetractor from returns during the reportingperiod, as was an underweight to and securityselection in the consumer discretionary sector.In addition, the Funds modest cash holdingand indirect market hedges also detractedfrom returns. However, security selection inthe financials, technology, and utilities sectorsbenefited returns relative to the Fundsbenchmark index.

Holdings in Apple, Genworth Financial, andLogitech added to performance as prices onthese securities appreciated during thereporting period.

Holdings in Imperial Tobacco, AngloGoldAshanti, and the use of gold as an indirectmarket hedge detracted from returns asprices on these securities declined or failedto keep pace with the broader equity marketduring the reporting period.

At the end of the reporting period, the Fundheld approximately 99% in equities webelieve are undervalued, approximately 1%(on the long side only) in merger arbitrageinvestments, and held the balance of theportfolio in cash and currency hedges.


PIMCO EqS Pathfinder Europe Fund





Class E Accumulation Shares (Inception 09-Jun-2010) 15.98% 7.46%

Class E Income Shares (Inception 09-Jun-2010) 15.98% 7.47%

MSCI Europe Index 19.82% 11.98%2



MSCI Europe Index (GBP Unhedged) 22.91%


Portfolio Insights

The PIMCO EqS Pathfinder Europe Fundseeks to achieve its investment objectiveprimarily by investing, under normalcircumstances, in Equity Securities (asdefined in the Prospectus), includingcommon and preferred stock, of issuerswhich the Investment Advisors are of theview are undervalued and that areeconomically tied to European countries.

An overweight to the consumer staplessector was a significant detractor fromreturns, however strong security selectionduring the reporting period negated much ofthis effect; an underweight to and securityselection in the consumer discretionarysector was a significant detractor fromperformance. In addition, the Funds modestcash holding and indirect market hedges alsodetracted from returns. However, a lighterweight to the materials sector, along withsecurity selection in the financials,information technology, and utilities sectorsbenefited returns relative to the Fundsbenchmark index.

Holdings in Carrefour, Logitech and MarineHarvest were notable contributors toperformance as these companies share pricesappreciated during the reporting period.

Holdings in Imperial Tobacco and the use ofgold as an indirect market hedge detractedfrom returns as prices on these securitiesdeclined or failed to keep pace with thebroader market during the reporting period.

At the end of the period, the Fund heldapproximately 97% in equities we believeare undervalued, less than 1% (on the longside only) in merger arbitrage investments,approximately 3% in cash equivalents, andheld the balance of the portfolio incurrency hedges.


Euro Bond Fund




Institutional Class Accumulation Shares (Inception 31-Dec-1998) 2.25% 4.74%

Institutional Class Income Shares (Inception 07-Jan-2003) 2.26% 4.59%

Investor Class Accumulation Shares (Inception 08-May-2002)2 1.91% 4.69%

Investor Class Income Shares (Inception 29-Apr-2002) 1.91% 4.65%

Administrative Class Accumulation Shares (Inception 07-Jun-2001) 1.79% 4.50%

Class E Accumulation Shares (Inception 31-Mar-2006) 1.36% 3.35%

Class E Income Shares (Inception 10-Oct-2005) 1.37% 2.81%

Class S Accumulation Shares (Inception 16-Oct-2013) 1.30%

Citigroup Euro Broad Investment-Grade Index 2.13% 4.66%3


Institutional CHF (Hedged) Class Accumulation Shares (Inception 30-Jun-2006) 1.82% 3.27%

Citigroup Euro Broad Investment-Grade Index (CHF Hedged) 1.92%

1 Annualised performance for periods of at least one year, otherwise cumulative.2 Investor Class Accumulation Shares opened initially on 18 January 2001, closed on 26 July 2001 and re-opened

08 May 2002.3 Benchmark inception performance is calculated from the inception date of the oldest share class.

Portfolio Insights

The Euro Bond Fund seeks to achieve itsinvestment objective by investing at leasttwo-thirds of its assets in a diversifiedportfolio of Euro-denominated Fixed IncomeInstruments (as defined in the Prospectus) ofvarying maturities.

A tactical overweight to shorter dated yieldsin Italy and Spain, primarily during thesecond half of the year, contributed toperformance as peripheral sovereignspreads compressed.

A curve-steepening bias in Europe,implemented through an underweight tocore country (Germany and France) duration(or sensitivity to changes in market interestrates) and exposure to Euribor contracts,contributed to performance as Bund yieldsrose and markets priced rate hikes furtherinto the future.

Exposure to select Spanish Local Authoritiescontributed to performance as prices onthese securities appreciated during thereporting period.

Exposure to UK residential mortgage-backedsecurities (RMBS) contributed to performanceas these securities posted positive returnsduring the reporting period.

Issue selection in the financial space,especially subordinated issues, contributedto performance as they outperformed duringthe reporting period.

Diversification into US, UK and Australianduration detracted from performance asdeveloped country yields sold off during thereporting period.

Tactical exposure to Brazilian local durationdetracted from performance as Brazilianyields rose during the reporting period.

An underweight to Spanish Cedulasdetracted from performance as spreadscompressed during the reporting period.


Euro Credit Fund




Institutional Class Accumulation Shares (Inception 31-Jan-2008) 1.89% 5.18%


Class E Accumulation Shares (Inception 25-May-2010) 1.05% 3.98%

Barclays Euro-Aggregate Credit Index 1.72% 5.23%2


Portfolio Insights

The Euro Credit Fund seeks to maximise totalreturn, consistent with preservation of capitaland prudent investment management. TheFund invests at least two-thirds of its assetsin a diversified portfolio of Euro-denominatedFixed Income Instruments (as defined in theProspectus) of varying maturities, which maybe represented by direct or indirect holdingsin credit-related Fixed Income Securities (asdefined in the Prospectus) or derivativeinstruments such as options, futures swaps orcredit default swaps.

An underweight to the pharmaceuticalssector, which underperformed the broaderEuro credit market, contributed toperformance during the reporting period.

An underweight to the wirelines sector,which lagged the broader credit market,contributed to performance during thereporting period.

Tactical exposure to the high yield creditsector, which had higher returns than theinvestment grade credit market, contributedto performance during the reporting period.

An underweight to the insurance sector,which outperformed the broader creditmarket, detracted from performance duringthe reporting period.

Tactical exposure to emerging markets localduration, primarily in Brazil, detracted fromperformance as rates in the region roseduring the reporting period.


Euro Income Bond Fund




Institutional Class Accumulation Shares (Inception 28-Feb-2011) 5.97% 7.38%

Institutional Class Income Shares (Inception 28-Feb-2011) 5.96% 7.38%

Investor Class Income Shares (Inception 29-May-2012) 5.61% 10.17%

Class E Accumulation Shares (Inception 28-Feb-2011) 5.02% 6.41%

Class E Income Shares (Inception 28-Feb-2011) 5.01% 6.40%

Barclays Euro Aggregate 1-10 Year Bond Index 2.30% 5.32%2


Portfolio Insights

The Euro Income Bond Fund seeks to investat least two-thirds of its assets in adiversified portfolio of Euro-denominatedbonds and other Fixed Income Instruments(as defined in the Prospectus) of varyingmaturities. The Fund will seek to maintain ahigh level of dividend income by investing ina broad array of fixed income sectors whichin the Investment Advisors view typicallygenerate elevated levels of income.

An emphasis on European high yieldcontributed to performance as spreadsnarrowed during the reporting period.

Exposure to US securitized credit, mainlynon-Agency residential mortgage-backedsecurities (RMBS), contributed toperformance as they posted positive returnsduring the reporting period.

Issue selection in the financial space,especially subordinated issues acrosssystemically important European banks,contributed to performance as spreads onthese securities tightened during thereporting period.


Euro Long Average Duration Fund




Institutional Class Accumulation Shares (Inception 21-Apr-2006) -4.58% 6.08%

Barclays Euro Government (Germany, France, Netherlands) over 15 years Index2 -5.28% 5.02%3

1 Annualised performance for periods of at least one year, otherwise cumulative.2 The blended performance reflects the performance of the Citigroup Euro Broad Investment-Grade (EuroBIG) Bond > 15

Years Index from 21 April 2006 through 31 March 2011, the Citigroup Euro Broad Investment-Grade (EuroBIG) Bond AAArated > 15 Years Index from 01 April 2011 through 31 January 2012, and the Barclays Euro Government (Germany, France,Netherlands) over 15 years Index from 01 February 2012 forward.

3 Benchmark inception performance is calculated from the inception date of the oldest share class.

Portfolio Insights

The Euro Long Average Duration Fund seeksto achieve its investment objective byinvesting at least two-thirds of its assets in adiversified portfolio of Euro-denominatedFixed Income Instruments (as defined inthe Prospectus).

An underweight to German and Dutchgovernment bonds contributed toperformance as yields for these countriesbonds rose during the reporting period.However, performance was negative asyields rose.

Allocations to securitized assets contributedto performance as spreads for these sectorstightened over the reporting period.

Allocations to government-related entitiesadded to performance as spreads for theseentities narrowed during thereporting period.

During the second part of the reportingperiod, allocations to medium and long-termUS government bonds detracted fromperformance as US yields rose overthis period.

Exposure to the Australian swap curveduring the first half of the reporting perioddetracted from performance as Australianrates rose during this period.

Allocations to Brazilian government bondsover the first half of the reporting perioddetracted from performance as yields inBrazil rose.


Euro Low Duration Fund




Institutional Class Accumulation Shares (Inception 05-Jul-2011) 2.25% 3.60%

Class E Accumulation Shares (Inception 25-Mar-2013) 0.40%

Barcap Euro Aggregate ex Treasury 1-3 year Index2 2.08% 3.45%3

1 Annualised performance for periods of at least one year, otherwise cumulative.2 The blended performance reflects the performance of the PIMCO European Advantage Government 1-3 Year Bond Index

from 30 June 2011 through 30 September 2012, and the Barcap Euro Aggregate ex Treasury 1-3 Year Index from01 October 2012 forward.

3 Benchmark inception performance is calculated from 30 June 2011.

Portfolio Insights

The Euro Low Duration Fund (formerlynamed the Euro Low Average Duration Fund)seeks to achieve its investment objective byinvesting at least two-thirds of its assets in adiversified portfolio of Euro-denominatedFixed Income Instruments (as defined in theProspectus) of varying maturities. Theaverage portfolio duration of the Fund

annual report - national bank of abu dhabi · to secretary henry paulson and then ......

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