PIMCO 3-7 Year U.S. Treasury Index Fund

Fund Info

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PIMCO 3-7 Year U.S. Treasury Index Fund  (NYSE:FIVZ)

As of 02/08/2010 $75.94 $75.95 Treasury  Intermediate  0.15%  1.15%  0.15% 
  Market
Price		 NAV Fund
Category		 Duration
Category		 Management
Fees		 Expense Ratio
(gross)		 Expense Ratio
(net of fee waiver)
Documents
Objective: To provide total return that closely corresponds, before fees and expenses, to the total return of The BofA Merrill Lynch 3-7 Year US Treasury IndexSM*

Fund Information As of 02/08/2010

Ticker FIVZ
CUSIP 72201R601
Inception Date 10/30/2009
Shares Outstanding 506,667
Total Net Assets $38,481,289
Daily Trading Volume
(in shares)		 24,141
Premium/Discount Average
(since inception)		 0.00%
Premium/Discount as
of market close		 -0.01%
Number of Holdings 30
SEC 30-Day Yield
The 30 Day SEC Yield is a standard yield calculation developed by the Securities and Exchange Commission (SEC) that allows for fairer comparisons among bond funds. It is based on the most recent 30-day period covered by the fund's filings with the SEC. The yield figure reflects the dividends and interest earned during the period, after the deduction of the fund's expenses.
 2.15%
Click Here to Access Annualized Performance Returns for one, five, and ten year periods (or the life of the Fund) based on NAV and closing price

Portfolio Information As of 01/31/2010

Average Credit Quality AAA
Effective Maturity
Weighted average of the maturities of the underlying bonds. The measure is computed by weighing each bond's maturity by its market value with respect to the portfolio and the likelihood of any of the bonds being called.
 4.88 years
Effective Duration
A portfolio's price sensitivity to changes in interest rates. An accurate predictor of price changes only for small, parallel shifts of the yield curve. For every 1 basis point fall (rise) in interest rates, a portfolio with duration of 1 year will rise (fall) in price by 1 bp.
 4.54
Tracking Error
A measure of risk, is defined as the annualized standard deviation of the portfolio's excess return versus the benchmark expressed in percent.
(since inception) 		NA
Estimated Yield To Maturity
The Yield to Maturity is the rate of return anticipated on a bond if it is held until the maturity date. The calculation of YTM takes into account the current market price, par value, coupon interest rate and time to maturity. PIMCO calculates a Fund's Estimated Yield to Maturity by averaging the yield to maturity of each security held in the Fund on a market weighted basis by selecting each security's yield to maturity from PIMCO's analytics database or from Bloomberg. A Fund’s estimated yield to maturity may differ from its distribution yield or SEC yield due to a number of factors, including unsettled trades and Fund expenses.
 2.12%

Index Information As of 01/31/2010

Index Tracked The BofA Merrill Lynch 3-7 Year US Treasury IndexSM*
Index Ticker G3OC
Inception Date 12/31/1977
Annualized Volatility
(since inception)		 5.55%
Rebalancing Frequency Monthly
Index Description

The BofA Merrill Lynch 3-7 Year US Treasury IndexSM* is an unmanaged index that tracks the performance of the direct Sovereign debt of the U.S. Government with at least $1 billion in outstanding face value and a remaining term to final maturity of at least 3 years and less than 7 years. It is not possible to invest directly in an unmanaged index.

Portfolio Management

Portfolio Manager:
Vineer Bhansali

Dr. Bhansali is a managing director and head of analytics for portfolio management in the Newport Beach office. Prior to joining PIMCO in 2000, he was a vice president in proprietary fixed-income trading at Credit Suisse First Boston. He is the author of numerous scientific and financial papers and of the book Pricing and Managing Exotic and Hybrid Options. He currently serves as an associate editor for the International Journal of Theoretical and Applied Finance. He has 19 years of investment experience and holds a Ph.D. in theoretical particle physics from Harvard University. He has a master's degree in physics and an undergraduate degree from the California Institute of Technology.

How To Invest

This fund is available for purchase anywhere ETFs are traded. For further information and to purchase this fund, please contact your broker. You can request this fund by name (PIMCO 3-7 Year U.S. Treasury Index Fund) or ticker symbol (FIVZ).

 

Investors should consider the investment objectives, risks, charges and expenses of the funds carefully before investing. This and other information are contained in the fund’s prospectus, which may be obtained by contacting your PIMCO representative or by clicking HERE. Please read the prospectus carefully before you invest or send money.

 

Annual Fund Operating Expenses (expenses that are deducted from Fund assets)(1)
Management
Fees		 Distribution
and/or Service
(12b-1) Fees(2)		 Other
Expenses(3)		 Total Annual
Fund Operating
Expenses		 Expense
Reduction(4)		 Net Annual
Fund Operating
Expenses
0.15% None 1.00% 1.15% (1.00)% 0.15%

(1)Authorized Participants may be charged a $500 creation/redemption transaction fee and an additional variable charge as a percentage of the cash amount invested. See “Creations and Redemptions—Transaction Fees” in the fund's prospectus for more information.
(2) The Fund has adopted a Distribution and Servicing (12b-1) Plan pursuant to which the Fund may bear a 12b-1 fee of up to 0.25%. However, no such fee is currently authorized to be paid by the Fund. See “Creations and Redemptions—Distribution and Servicing Plan” in the fund's prospectus for more information.
(3)“Other Expenses” reflect estimated organizational expenses for the Fund’s first fiscal year.
(4) PIMCO has contractually agreed, until October 31, 2010, to waive its management fee, or reimburse the Fund, to the extent that organizational expenses and pro rata Trustees’ fees exceed 0.0049% (the “Expense Limit”) of the Fund’s average net assets. Under the Expense Limitation Agreement, which renews annually for a full year unless terminated by PIMCO upon at least 30 days’ notice prior to the end of the contract term, PIMCO may recoup these waivers and reimbursements in future periods, not exceeding three years, provided organizational expenses and pro rata Trustees’ fees plus such recoupment, do not exceed the Expense Limit.

In order to provide additional information regarding the intra-day value of shares of the Fund, the NYSE Arca, Inc. or a market data vendor disseminates every 15 seconds through the facilities of the Consolidated Tape Association or other widely disseminated means an updated Indicative NAV (“iNAV”) for the Fund as calculated by an information provider or market data vendor. The Fund is not involved in or responsible for any aspect of the calculation or dissemination of the iNAV and makes no representation or warranty as to the accuracy of the iNAV.

Shares of the fund are not individually redeemable and shares may only be acquired from and redeemed by the fund in Creation Units. Investors may sell or purchase individual shares in secondary market transactions that do not involve the ETF. Shares of the Funds are bought and sold at market price (not NAV). Brokerage commissions will reduce returns. Please see the prospectus for more details.

Exchange Traded Funds (“ETF”) are afforded certain exemptions from the Investment Company Act. The exemptions allow, among other things, for individual shares to trade on the secondary market. Individual shares cannot be directly purchased from or redeemed by the fund. Purchases and redemptions directly with ETFs are only accomplished through creation unit aggregations or “baskets” of shares. An investment in an ETF involves risk, including the loss of principal. Investment return, price, yield, and NAV will fluctuate with changes in market conditions. Investment policies, management fees and other information can be found in the individual ETF’s prospectus.

ETFs are subject to secondary market trading risks. Shares of the Fund will be listed for trading on an exchange, however, there can be no guarantee that an active trading market for such shares will develop or continue. There can be no guarantee that the Fund’s exchange listing or ability to trade its shares will continue or remain unchanged. Shares of the Fund may trade on an exchange at prices at, above or below their most recent NAV. The per share NAV of the Fund is calculated at the end of each business day, and fluctuates with changes in the market value of the Fund’s holdings. The trading prices of the Fund’s shares fluctuate continuously throughout the trading day based on market supply and demand, which may not correlate to NAV. The trading prices of the Fund’s shares may differ significantly from NAV during periods of market volatility, which may, among other factors, lead to the Fund’s shares trading at a premium or discount to NAV.

Investing in the bond market is subject to certain risks including the risk that fixed income securities will decline in value because of changes in interest rates; the risk that fund shares could trade at prices other than the net asset value; and the risk that the manager's investment decisions might not produce the desired results. Certain U.S. Government securities are backed by the full faith of the government. Obligations of U.S. Government agencies and authorities are supported by varying degrees but are generally not backed by the full faith of the U.S. Government; portfolios that invest in such securities are not guaranteed and will fluctuate in value. The credit quality of a particular security or group of securities does not ensure the stability or safety of the overall portfolio. The credit quality of a particular security or group of securities does not ensure the stability or safety of the overall portfolio. The Average Credit Quality ratings are provided to indicate the credit worthiness of the underlying bonds in the portfolio and generally range from Aaa (highest) to B (lowest).

Buying or selling Fund shares on an exchange may require the payment of brokerage commissions. Due to the costs inherent in buying or selling Fund shares, frequent trading may detract significantly from investment returns. Investment in Fund shares may not be advisable for investors who expect to engage in frequent trading.

The Fund uses an indexing approach and may be affected by a general decline in market segments or asset classes relating to its Underlying Index. The Fund invests in securities and instruments included in, or representative of, its Underlying Index regardless of the investment merits of the Underlying Index.

Premiums or discounts are the differences (expressed as a percentage) between the NAV and the Market Price of the Fund on a given day, generally at the time the NAV is calculated. A premium is the amount that the Fund is trading above the reported NAV, expressed as a percentage of the NAV. A discount is the amount that the Fund is trading below the reported NAV, expressed as a percentage of the NAV. A discount or premium could be significant. The since inception premium/discount average is calculated by averaging the daily premium/discount since the inception of the fund. The daily premium/discount is the difference between the daily market price for shares of the Fund and the Fund's net asset value. The market price is determined using the midpoint between the highest bid and the lowest offer on the listing exchange, as of the time that the Fund's NAV is calculated.

PIMCO's average credit quality statistic is intended to provide clients with helpful insight into a portfolio's sensitivity to changes in credit spreads. In general, instruments are weighted at their market value. If the fund invests in certain derivatives, such as swaps, they are weighted at “bond equivalent value”, which is the notional amount of the instrument adjusted by the current gain or loss on the position. The two “legs” of a swap are included separately in the calculation. The “risky” leg (e.g. the fixed leg for interest rate swaps or the reference entity for credit default swaps) is assigned a credit rating associated with the regional market (for interest rate swaps) or reference entity (for credit default swaps) of the instrument. The “floating” leg is assigned a short-term rating of A1/P1.

The BofA Merrill Lynch 3-7 Year US Treasury IndexSM is an unmanaged index that tracks the performance of the direct Sovereign debt of the U.S. Government with at least $1 billion in outstanding face value and a remaining term to final maturity of at least 3 years and less than 7 years. It is not possible to invest directly in an unmanaged index.

*“BofA Merrill Lynch” and “The BofA Merrill Lynch 3-7 Year US Treasury IndexSM” are reprinted with permission. © Copyright 2009 Merrill Lynch, Pierce, Fenner & Smith Incorporated (“BofA Merrill Lynch”). All rights reserved. “BofA Merrill Lynch” and “The BofA Merrill Lynch 3-7 Year US Treasury IndexSM” are service marks of BofA Merrill Lynch and/or its affiliates and have been licensed for use for certain purposes by PIMCO on behalf of the PIMCO 3-7 Year U.S. Treasury Index Fund that is based on The BofA Merrill Lynch 3-7 Year US Treasury IndexSM, and is not issued, sponsored, endorsed or promoted by BofA Merrill Lynch and/or BofA Merrill Lynch’s affiliates nor is BofA Merrill Lynch and/or BofA Merrill Lynch’s affiliates an adviser to the PIMCO 3-7 Year U.S. Treasury Index Fund. BofA Merrill Lynch and BofA Merrill Lynch’s affiliates make no representation, express or implied, regarding the advisability of investing in the PIMCO 3-7 Year U.S. Treasury Index Fund or The BofA Merrill Lynch 3-7 Year US Treasury IndexSM and do not guarantee the quality, accuracy or completeness of The BofA Merrill Lynch 3-7 Year US Treasury IndexSM, index values or any index related data included herein, provided herewith or derived therefrom and assume no liability in connection with their use. As the index provider, BofA Merrill Lynch is licensing certain trademarks, The The BofA Merrill Lynch 3-7 Year US Treasury IndexSM and trade names which are composed by BofA Merrill Lynch without regard to PIMCO, the PIMCO 3-7 Year U.S. Treasury Index Fund or any investor. BofA Merrill Lynch and BofA Merrill Lynch’s affiliates do not provide investment advice to PIMCO or the PIMCO 3-7 Year U.S. Treasury Index Fund and are not responsible for the performance of the PIMCO 3-7 Year U.S. Treasury Index Fund.

Average Volume As of 12/31/2009

in shares 5,039
in $ $380,566.76

Bid/Ask Spread As of 12/31/2009

in % 0.00%
in $ $0.06

Fund Tickers

NAV Per Share FIVZ.NV
Und. Trading Value FIVZ.IV
Shares Outstanding FIVZ.SO
Est. Cash FIVZ.EU
Total Cash FIVZ.TC

 

Investors should consider the investment objectives, risks, charges and expenses of the funds carefully before investing. This and other information are contained in the fund’s prospectus, which may be obtained by contacting your PIMCO representative or by clicking HERE. Please read the prospectus carefully before you invest or send money.


In order to provide additional information regarding the intra-day value of shares of the Fund, the NYSE Arca, Inc. or a market data vendor disseminates every 15 seconds through the facilities of the Consolidated Tape Association or other widely disseminated means an updated Indicative NAV (“iNAV”) for the Fund as calculated by an information provider or market data vendor. The Fund is not involved in or responsible for any aspect of the calculation or dissemination of the iNAV and makes no representation or warranty as to the accuracy of the iNAV.

Shares of the fund are not individually redeemable and shares may only be acquired from and redeemed by the fund in Creation Units. Investors may sell or purchase individual shares in secondary market transactions that do not involve the ETF. Shares of the Funds are bought and sold at market price (not NAV). Brokerage commissions will reduce returns. Please see the prospectus for more details.

Exchange Traded Funds (“ETF”) are afforded certain exemptions from the Investment Company Act. The exemptions allow, among other things, for individual shares to trade on the secondary market. Individual shares cannot be directly purchased from or redeemed by the fund. Purchases and redemptions directly with ETFs are only accomplished through creation unit aggregations or “baskets ” of shares. An investment in an ETF involves risk, including the loss of principal. Investment return, price, yield, and NAV will fluctuate with changes in market conditions. Investment policies, management fees and other information can be found in the individual ETF’s prospectus.

ETFs are subject to secondary market trading risks. Shares of the Fund will be listed for trading on an exchange, however, there can be no guarantee that an active trading market for such shares will develop or continue. There can be no guarantee that the Fund’s exchange listing or ability to trade its shares will continue or remain unchanged. Shares of the Fund may trade on an exchange at prices at, above or below their most recent NAV. The per share NAV of the Fund is calculated at the end of each business day, and fluctuates with changes in the market value of the Fund’s holdings. The trading prices of the Fund’s shares fluctuate continuously throughout the trading day based on market supply and demand, which may not correlate to NAV. The trading prices of the Fund’s shares may differ significantly from NAV during periods of market volatility, which may, among other factors, lead to the Fund’s shares trading at a premium or discount to NAV.

Investing in the bond market is subject to certain risks including the risk that fixed income securities will decline in value because of changes in interest rates; the risk that fund shares could trade at prices other than the net asset value; and the risk that the manager's investment decisions might not produce the desired results.   Certain U.S. Government securities are backed by the full faith of the government. Obligations of U.S. Government agencies and authorities are supported by varying degrees but are generally not backed by the full faith of the U.S. Government; portfolios that invest in such securities are not guaranteed and will fluctuate in value. Currency rates may fluctuate significantly over short periods of time and may reduce the returns of a portfolio. Derivatives may involve certain costs and risks such as liquidity, interest rate, market, credit, management and the risk that a position could not be closed when most advantageous. Investing in derivatives could lose more than the amount invested.

The BofA Merrill Lynch 3-7 Year US Treasury IndexSM is an unmanaged index that tracks the performance of the direct Sovereign debt of the U.S. Government with at least $1 billion in outstanding face value and a remaining term to final maturity of at least 3 years and less than 7 years. It is not possible to invest directly in an unmanaged index.

*“BofA Merrill Lynch” and “The BofA Merrill Lynch 3-7 Year US Treasury IndexSM” are reprinted with permission. © Copyright 2009 Merrill Lynch, Pierce, Fenner & Smith Incorporated (“BofA Merrill Lynch”). All rights reserved. “BofA Merrill Lynch” and “The BofA Merrill Lynch 3-7 Year US Treasury IndexSM” are service marks of BofA Merrill Lynch and/or its affiliates and have been licensed for use for certain purposes by PIMCO on behalf of the PIMCO 3-7 Year U.S. Treasury Index Fund that is based on The BofA Merrill Lynch 3-7 Year US Treasury IndexSM, and is not issued, sponsored, endorsed or promoted by BofA Merrill Lynch and/or BofA Merrill Lynch’s affiliates nor is BofA Merrill Lynch and/or BofA Merrill Lynch’s affiliates an adviser to the PIMCO 3-7 Year U.S. Treasury Index Fund. BofA Merrill Lynch and BofA Merrill Lynch’s affiliates make no representation, express or implied, regarding the advisability of investing in the PIMCO 3-7 Year U.S. Treasury Index Fund or The BofA Merrill Lynch 3-7 Year US Treasury IndexSM and do not guarantee the quality, accuracy or completeness of The BofA Merrill Lynch 3-7 Year US Treasury IndexSM, index values or any index related data included herein, provided herewith or derived therefrom and assume no liability in connection with their use. As the index provider, BofA Merrill Lynch is licensing certain trademarks, The The BofA Merrill Lynch 3-7 Year US Treasury IndexSM and trade names which are composed by BofA Merrill Lynch without regard to PIMCO, the PIMCO 3-7 Year U.S. Treasury Index Fund or any investor. BofA Merrill Lynch and BofA Merrill Lynch’s affiliates do not provide investment advice to PIMCO or the PIMCO 3-7 Year U.S. Treasury Index Fund and are not responsible for the performance of the PIMCO 3-7 Year U.S. Treasury Index Fund.

Quarter End Performance (%) As of 12/31/2009See Month End Performance ›

 CumulativeAnnualized
 YTD1MO3MO6MO1YR3YR5YR10YRSINCE
INCEPT.
NAV Total Returns (After Fees)---2.58-------------0.84
Market Price Returns---2.63-------------0.85
Index Returns---2.57-------------0.83
Performance Difference (Fund NAV vs. Index)---0.01-------------0.01
Performance Difference (Fund Market Price vs. Index)---0.06-------------0.02
Volatility------------------

Quarter End After Tax Returns (%) As of 12/31/2009See Month End Performance ›

 CumulativeAnnualized
 YTD1MO3MO6MO1YR3YR5YR10YRSINCE
INCEPT.
---2.63-------------0.94
---1.71-------------0.56
Index---2.57-------------0.83

Month End Performance (%) As of 01/31/2010See Quarter End Performance ›

 CumulativeAnnualized
 YTD1MO3MO6MO1YR3YR5YR10YRSINCE
INCEPT.
NAV Total Returns (After Fees)1.731.730.87----------0.87
Market Price Returns1.721.720.86----------0.86
Index Returns1.751.750.89----------0.90
Performance Difference (Fund NAV vs. Index)-0.02-0.02-0.02-----------0.03
Performance Difference (Fund Market Price vs. Index)-0.03-0.03-0.03-----------0.04
Volatility------------------

Month End After Tax Returns (%) As of 01/31/2010See Quarter End Performance ›

 CumulativeAnnualized
 YTD1MO3MO6MO1YR3YR5YR10YRSINCE
INCEPT.
1.661.660.70----------0.70
1.121.120.55----------0.55
Index1.751.750.89----------0.90
Pre-Liquidation
Return after taxes on distributions. Assumes fund shares have not been sold.
Post-Liquidation
Return after taxes on distributions and sale of fund shares.
Pre-Liquidation
Return after taxes on distributions. Assumes fund shares have not been sold.
Post-Liquidation
Return after taxes on distributions and sale of fund shares.

Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher that performance shown. Investment return and principal value will fluctuate, so that Fund shares may be worth more or less than their original cost when sold or redeemed. Performance data current to the most recent month-end is available by clicking HERE or by calling 888-400-4ETF.

Investors should consider the investment objectives, risks, charges and expenses of the funds carefully before investing. This and other information are contained in the fund’s prospectus, which may be obtained by contacting your PIMCO representative or by clicking HERE. Please read the prospectus carefully before you invest or send money.


The performance figures presented reflect the total return performance and reflect changes in share price and reinvestment of dividend and capital gain distributions. All periods longer than one year are annualized.

In order to provide additional information regarding the intra-day value of shares of the Fund, the NYSE Arca, Inc. or a market data vendor disseminates every 15 seconds through the facilities of the Consolidated Tape Association or other widely disseminated means an updated Indicative NAV (“iNAV”) for the Fund as calculated by an information provider or market data vendor. The Fund is not involved in or responsible for any aspect of the calculation or dissemination of the iNAV and makes no representation or warranty as to the accuracy of the iNAV.

Shares of the fund are not individually redeemable and shares may only be acquired from and redeemed by the fund in Creation Units. Investors may sell or purchase individual shares in secondary market transactions that do not involve the ETF. Shares of the Funds are bought and sold at market price (not NAV). Brokerage commissions will reduce returns. Please see the prospectus for more details.

Exchange Traded Funds (“ETF”) are afforded certain exemptions from the Investment Company Act. The exemptions allow, among other things, for individual shares to trade on the secondary market. Individual shares cannot be directly purchased from or redeemed by the fund. Purchases and redemptions directly with ETFs are only accomplished through creation unit aggregations or “baskets” of shares. An investment in an ETF involves risk, including the loss of principal. Investment return, price, yield, and NAV will fluctuate with changes in market conditions. Investment policies, management fees and other information can be found in the individual ETF’s prospectus.

ETFs are subject to secondary market trading risks. Shares of the Fund will be listed for trading on an exchange, however, there can be no guarantee that an active trading market for such shares will develop or continue. There can be no guarantee that the Fund’s exchange listing or ability to trade its shares will continue or remain unchanged. Shares of the Fund may trade on an exchange at prices at, above or below their most recent NAV. The per share NAV of the Fund is calculated at the end of each business day, and fluctuates with changes in the market value of the Fund’s holdings. The trading prices of the Fund’s shares fluctuate continuously throughout the trading day based on market supply and demand, which may not correlate to NAV. The trading prices of the Fund’s shares may differ significantly from NAV during periods of market volatility, which may, among other factors, lead to the Fund’s shares trading at a premium or discount to NAV.

Investing in the bond market is subject to certain risks including the risk that fixed income securities will decline in value because of changes in interest rates; the risk that fund shares could trade at prices other than the net asset value; and the risk that the manager's investment decisions might not produce the desired results.  Certain U.S. Government securities are backed by the full faith of the government. Obligations of U.S. Government agencies and authorities are supported by varying degrees but are generally not backed by the full faith of the U.S. Government; portfolios that invest in such securities are not guaranteed and will fluctuate in value.

Buying or selling Fund shares on an exchange may require the payment of brokerage commissions. Due to the costs inherent in buying or selling Fund shares, frequent trading may detract significantly from investment returns. Investment in Fund shares may not be advisable for investors who expect to engage in frequent trading.

The Fund uses an indexing approach and may be affected by a general decline in market segments or asset classes relating to its Underlying Index. The Fund invests in securities and instruments included in, or representative of, its Underlying Index regardless of the investment merits of the Underlying Index.

The BofA Merrill Lynch 3-7 Year US Treasury IndexSM is an unmanaged index that tracks the performance of the direct Sovereign debt of the U.S. Government with at least $1 billion in outstanding face value and a remaining term to final maturity of at least 3 years and less than 7 years. It is not possible to invest directly in an unmanaged index.

*“BofA Merrill Lynch” and “The BofA Merrill Lynch 3-7 Year US Treasury IndexSM” are reprinted with permission. © Copyright 2009 Merrill Lynch, Pierce, Fenner & Smith Incorporated (“BofA Merrill Lynch”). All rights reserved. “BofA Merrill Lynch” and “The BofA Merrill Lynch 3-7 Year US Treasury IndexSM” are service marks of BofA Merrill Lynch and/or its affiliates and have been licensed for use for certain purposes by PIMCO on behalf of the PIMCO 3-7 Year U.S. Treasury Index Fund that is based on The BofA Merrill Lynch 3-7 Year US Treasury IndexSM, and is not issued, sponsored, endorsed or promoted by BofA Merrill Lynch and/or BofA Merrill Lynch’s affiliates nor is BofA Merrill Lynch and/or BofA Merrill Lynch’s affiliates an adviser to the PIMCO 3-7 Year U.S. Treasury Index Fund. BofA Merrill Lynch and BofA Merrill Lynch’s affiliates make no representation, express or implied, regarding the advisability of investing in the PIMCO 3-7 Year U.S. Treasury Index Fund or The BofA Merrill Lynch 3-7 Year US Treasury IndexSM and do not guarantee the quality, accuracy or completeness of The BofA Merrill Lynch 3-7 Year US Treasury IndexSM, index values or any index related data included herein, provided herewith or derived therefrom and assume no liability in connection with their use. As the index provider, BofA Merrill Lynch is licensing certain trademarks, The The BofA Merrill Lynch 3-7 Year US Treasury IndexSM and trade names which are composed by BofA Merrill Lynch without regard to PIMCO, the PIMCO 3-7 Year U.S. Treasury Index Fund or any investor. BofA Merrill Lynch and BofA Merrill Lynch’s affiliates do not provide investment advice to PIMCO or the PIMCO 3-7 Year U.S. Treasury Index Fund and are not responsible for the performance of the PIMCO 3-7 Year U.S. Treasury Index Fund.

Premium/Discount analysis for As of 12/31/2009

 Closing Price
above or equal to NAV		Closing Price
below NAV
Percent DifferenceNo. of DaysPercent of Total DaysNo. of DaysPercent of Total Days
 Closing Price
above or equal to NAV		Closing Price
below NAV
Percent DifferenceNo. of DaysPercent of Total DaysNo. of DaysPercent of Total Days
 Closing Price
above or equal to NAV		Closing Price
below NAV
Percent DifferenceNo. of DaysPercent of Total DaysNo. of DaysPercent of Total Days
 Closing Price
above or equal to NAV		Closing Price
below NAV
Percent DifferenceNo. of DaysPercent of Total DaysNo. of DaysPercent of Total Days
0 - 0.49%2868.3%1331.7%
0.5% - 0.99%00.0%00.0%
1.0% - 1.49%00.0%00.0%
1.5% - 1.99%00.0%00.0%
2.0% - 2.49%00.0%00.0%
2.5% - 2.99%00.0%00.0%
3.0% - 3.49%00.0%00.0%
4.0% - 4.49%00.0%00.0%
4.5% - 4.99%00.0%00.0%
> 5.0%00.0%00.0%
Total2868.3%1331.7%
 Closing Price
above or equal to NAV		Closing Price
below NAV
Percent DifferenceNo. of DaysPercent of Total DaysNo. of DaysPercent of Total Days
 Closing Price
above or equal to NAV		Closing Price
below NAV
Percent DifferenceNo. of DaysPercent of Total DaysNo. of DaysPercent of Total Days
 Closing Price
above or equal to NAV		Closing Price
below NAV
Percent DifferenceNo. of DaysPercent of Total DaysNo. of DaysPercent of Total Days
 Closing Price
above or equal to NAV		Closing Price
below NAV
Percent DifferenceNo. of DaysPercent of Total DaysNo. of DaysPercent of Total Days

 

Investors should consider the investment objectives, risks, charges and expenses of the funds carefully before investing. This and other information are contained in the fund’s prospectus, which may be obtained by contacting your PIMCO representative or by clicking HERE. Please read the prospectus carefully before you invest or send money.


In order to provide additional information regarding the intra-day value of shares of the Fund, the NYSE Arca, Inc. or a market data vendor disseminates every 15 seconds through the facilities of the Consolidated Tape Association or other widely disseminated means an updated Indicative NAV (“iNAV”) for the Fund as calculated by an information provider or market data vendor. The Fund is not involved in or responsible for any aspect of the calculation or dissemination of the iNAV and makes no representation or warranty as to the accuracy of the iNAV.

Shares of the fund are not individually redeemable and shares may only be acquired from and redeemed by the fund in Creation Units. Investors may sell or purchase individual shares in secondary market transactions that do not involve the ETF. Shares of the Funds are bought and sold at market price (not NAV). Brokerage commissions will reduce returns. Please see the prospectus for more details.

Premiums or discounts are the differences (expressed as a percentage) between the NAV and the Market Price of the Fund on a given day, generally at the time the NAV is calculated. A premium is the amount that the Fund is trading above the reported NAV, expressed as a percentage of the NAV. A discount is the amount that the Fund is trading below the reported NAV, expressed as a percentage of the NAV. A discount or premium could be significant.

The since inception premium/discount average is calculated by averaging the daily premium/discount since the inception of the fund. The daily premium/discount is the difference between the daily market price for shares of the Fund and the Fund's net asset value. The market price is determined using the midpoint between the highest bid and the lowest offer on the listing exchange, as of the time that the Fund's NAV is calculated.

The NAV of the Fund’s shares is determined by dividing the total value of the Fund’s portfolio investments and other assets, less any liabilities, by the total number of shares outstanding. Fund shares are valued as of the close of regular trading (normally 4:00 p.m., Eastern time) (the “NYSE Close”) on each business day. The price used to calculate market returns (“Market Price”) of the Fund generally is determined using the midpoint between the highest bid and the lowest offer on the national securities exchange on which shares of the Fund will be primarily listed for trading, as of the time that the Fund’s NAV is calculated. The Fund’s Market Price may be at, above or below its NAV. The NAV of the Fund will fluctuate with changes in the market value of its portfolio holdings. The Market Price of the Fund will fluctuate in accordance with changes in its NAV, as well as market supply and demand.

The BofA Merrill Lynch 3-7 Year US Treasury IndexSM is an unmanaged index that tracks the performance of the direct Sovereign debt of the U.S. Government with at least $1 billion in outstanding face value and a remaining term to final maturity of at least 3 years and less than 7 years. It is not possible to invest directly in an unmanaged index.

*“BofA Merrill Lynch” and “The BofA Merrill Lynch 3-7 Year US Treasury IndexSM” are reprinted with permission. © Copyright 2009 Merrill Lynch, Pierce, Fenner & Smith Incorporated (“BofA Merrill Lynch”). All rights reserved. “BofA Merrill Lynch” and “The BofA Merrill Lynch 3-7 Year US Treasury IndexSM” are service marks of BofA Merrill Lynch and/or its affiliates and have been licensed for use for certain purposes by PIMCO on behalf of the PIMCO 3-7 Year U.S. Treasury Index Fund that is based on The BofA Merrill Lynch 3-7 Year US Treasury IndexSM, and is not issued, sponsored, endorsed or promoted by BofA Merrill Lynch and/or BofA Merrill Lynch’s affiliates nor is BofA Merrill Lynch and/or BofA Merrill Lynch’s affiliates an adviser to the PIMCO 3-7 Year U.S. Treasury Index Fund. BofA Merrill Lynch and BofA Merrill Lynch’s affiliates make no representation, express or implied, regarding the advisability of investing in the PIMCO 3-7 Year U.S. Treasury Index Fund or The BofA Merrill Lynch 3-7 Year US Treasury IndexSM and do not guarantee the quality, accuracy or completeness of The BofA Merrill Lynch 3-7 Year US Treasury IndexSM, index values or any index related data included herein, provided herewith or derived therefrom and assume no liability in connection with their use. As the index provider, BofA Merrill Lynch is licensing certain trademarks, The The BofA Merrill Lynch 3-7 Year US Treasury IndexSM and trade names which are composed by BofA Merrill Lynch without regard to PIMCO, the PIMCO 3-7 Year U.S. Treasury Index Fund or any investor. BofA Merrill Lynch and BofA Merrill Lynch’s affiliates do not provide investment advice to PIMCO or the PIMCO 3-7 Year U.S. Treasury Index Fund and are not responsible for the performance of the PIMCO 3-7 Year U.S. Treasury Index Fund.

Exchange Traded Funds (“ETF”) are afforded certain exemptions from the Investment Company Act. The exemptions allow, among other things, for individual shares to trade on the secondary market. Individual shares cannot be directly purchased from or redeemed by the fund. Purchases and redemptions directly with ETFs are only accomplished through creation unit aggregations or “baskets” of shares. An investment in an ETF involves risk, including the loss of principal. Investment return, price, yield, and NAV will fluctuate with changes in market conditions. Investment policies, management fees and other information can be found in the individual ETF’s prospectus.

ETFs are subject to secondary market trading risks. Shares of the Fund will be listed for trading on an exchange, however, there can be no guarantee that an active trading market for such shares will develop or continue. There can be no guarantee that the Fund’s exchange listing or ability to trade its shares will continue or remain unchanged. Shares of the Fund may trade on an exchange at prices at, above or below their most recent NAV. The per share NAV of the Fund is calculated at the end of each business day, and fluctuates with changes in the market value of the Fund’s holdings. The trading prices of the Fund’s shares fluctuate continuously throughout the trading day based on market supply and demand, which may not correlate to NAV. The trading prices of the Fund’s shares may differ significantly from NAV during periods of market volatility, which may, among other factors, lead to the Fund’s shares trading at a premium or discount to NAV.

Investing in the bond market is subject to certain risks including the risk that fixed income securities will decline in value because of changes in interest rates; the risk that fund shares could trade at prices other than the net asset value; and the risk that the manager's investment decisions might not produce the desired results.  Certain U.S. Government securities are backed by the full faith of the government. Obligations of U.S. Government agencies and authorities are supported by varying degrees but are generally not backed by the full faith of the U.S. Government; portfolios that invest in such securities are not guaranteed and will fluctuate in value.

Buying or selling Fund shares on an exchange may require the payment of brokerage commissions. Due to the costs inherent in buying or selling Fund shares, frequent trading may detract significantly from investment returns. Investment in Fund shares may not be advisable for investors who expect to engage in frequent trading.

The Fund uses an indexing approach and may be affected by a general decline in market segments or asset classes relating to its Underlying Index. The Fund invests in securities and instruments included in, or representative of, its Underlying Index regardless of the investment merits of the Underlying Index.

Interest Rate Exposures As of 01/31/2010

Exposure Portfolio Index Definition
Effective Duration 4.5 4.5 A portfolio's price sensitivity to changes in interest rates. An accurate predictor of price changes only for small, parallel shifts of the yield curve. For every 1 basis point fall (rise) in interest rates, a portfolio with duration of 1 year will rise (fall) in price by 1 bp.
Bull Market Duration 4.6 4.6 A portfolio's effective duration after a 50 bp decline in rates. The extent to which a portfolio's duration exceeds its bull market duration is a gauge of contraction risk.
Bear Market Duration 4.5 4.5 A portfolio's effective duration after a 50 bp rise in rates. The extent to which a portfolio's bear market duration exceeds its duration is a gauge of extension risk.
Total Curve Duration 0.0 NA A portfolio's price sensitivity relative to the benchmark to changes in the slope of the yield curve, measured between the 2-30 year Government yields, holding the 10-year yield constant. For every 1 bp of steepening (flattening), a portfolio with curve duration of 1 year will rise (fall) in price by 1 bp relative to the benchmark.

Sector Exposures +As of 01/31/2010

Exposure Portfolio Index Definition
Mortgage Spread Duration 0.0 0.0 The contribution of mortgages to spread duration. For every 1 bp of mortgage spread tightening (widening), a portfolio with mortgage spread duration of 1 year will rise (fall) in price by 1 bp.
Corporate Spread Duration 0.0 0.0 The contribution of corporate bonds to spread duration. For every 1 bp of corporate spread tightening (widening), a portfolio with corporate spread duration of 1 year will rise (fall) in price by 1 bp.
Emerging Markets Spread Duration 0.0 0.0 The contribution of emerging market bonds to spread duration. For every 1 bp of emerging market spread tightening (widening), a portfolio with an emerging market spread duration of 1 year will rise (fall) in price by 1 bp.

Key Rate DurationAs of 12/31/2009

* As measured by spread duration, which represents a portfolio's price sensitivity to changes in spreads, or yield premiums, that affect the value of bonds that trade at a spread to Governments. These include mortgage-backed, corporate and emerging market bonds, as well as swaps.
1 mo 0.0
3 mo 0.0
1 yr 0.0
2 yr 0.0
3 yr 1.0
5 yr 2.1

 

Investors should consider the investment objectives, risks, charges and expenses of the funds carefully before investing. This and other information are contained in the fund’s prospectus, which may be obtained by contacting your PIMCO representative or by clicking HERE. Please read the prospectus carefully before you invest or send money.

 

In order to provide additional information regarding the intra-day value of shares of the Fund, the NYSE Arca, Inc. or a market data vendor disseminates every 15 seconds through the facilities of the Consolidated Tape Association or other widely disseminated means an updated Indicative NAV (“iNAV”) for the Fund as calculated by an information provider or market data vendor. The Fund is not involved in or responsible for any aspect of the calculation or dissemination of the iNAV and makes no representation or warranty as to the accuracy of the iNAV.

Shares of the fund are not individually redeemable and shares may only be acquired from and redeemed by the fund in Creation Units. Investors may sell or purchase individual shares in secondary market transactions that do not involve the ETF. Shares of the Funds are bought and sold at market price (not NAV). Brokerage commissions will reduce returns. Please see the prospectus for more details.

Exchange Traded Funds (“ETF”) are afforded certain exemptions from the Investment Company Act. The exemptions allow, among other things, for individual shares to trade on the secondary market. Individual shares cannot be directly purchased from or redeemed by the fund. Purchases and redemptions directly with ETFs are only accomplished through creation unit aggregations or “baskets ” of shares. An investment in an ETF involves risk, including the loss of principal. Investment return, price, yield, and NAV will fluctuate with changes in market conditions. Investment policies, management fees and other information can be found in the individual ETF’s prospectus.

ETFs are subject to secondary market trading risks. Shares of the Fund will be listed for trading on an exchange, however, there can be no guarantee that an active trading market for such shares will develop or continue. There can be no guarantee that the Fund’s exchange listing or ability to trade its shares will continue or remain unchanged. Shares of the Fund may trade on an exchange at prices at, above or below their most recent NAV. The per share NAV of the Fund is calculated at the end of each business day, and fluctuates with changes in the market value of the Fund’s holdings. The trading prices of the Fund’s shares fluctuate continuously throughout the trading day based on market supply and demand, which may not correlate to NAV. The trading prices of the Fund’s shares may differ significantly from NAV during periods of market volatility, which may, among other factors, lead to the Fund’s shares trading at a premium or discount to NAV.

Investing in the bond market is subject to certain risks including the risk that fixed income securities will decline in value because of changes in interest rates; the risk that fund shares could trade at prices other than the net asset value; and the risk that the manager's investment decisions might not produce the desired results. Certain U.S. Government securities are backed by the full faith of the government. Obligations of U.S. Government agencies and authorities are supported by varying degrees but are generally not backed by the full faith of the U.S. Government; portfolios that invest in such securities are not guaranteed and will fluctuate in value. Currency rates may fluctuate significantly over short periods of time and may reduce the returns of a portfolio. Derivatives may involve certain costs and risks such as liquidity, interest rate, market, credit, management and the risk that a position could not be closed when most advantageous. Investing in derivatives could lose more than the amount invested.

The BofA Merrill Lynch 3-7 Year US Treasury IndexSM is an unmanaged index that tracks the performance of the direct Sovereign debt of the U.S. Government with at least $1 billion in outstanding face value and a remaining term to final maturity of at least 3 years and less than 7 years. It is not possible to invest directly in an unmanaged index.

*“BofA Merrill Lynch” and “The BofA Merrill Lynch 3-7 Year US Treasury IndexSM” are reprinted with permission. © Copyright 2009 Merrill Lynch, Pierce, Fenner & Smith Incorporated (“BofA Merrill Lynch”). All rights reserved. “BofA Merrill Lynch” and “The BofA Merrill Lynch 3-7 Year US Treasury IndexSM” are service marks of BofA Merrill Lynch and/or its affiliates and have been licensed for use for certain purposes by PIMCO on behalf of the PIMCO 3-7 Year U.S. Treasury Index Fund that is based on The BofA Merrill Lynch 3-7 Year US Treasury IndexSM, and is not issued, sponsored, endorsed or promoted by BofA Merrill Lynch and/or BofA Merrill Lynch’s affiliates nor is BofA Merrill Lynch and/or BofA Merrill Lynch’s affiliates an adviser to the PIMCO 3-7 Year U.S. Treasury Index Fund. BofA Merrill Lynch and BofA Merrill Lynch’s affiliates make no representation, express or implied, regarding the advisability of investing in the PIMCO 3-7 Year U.S. Treasury Index Fund or The BofA Merrill Lynch 3-7 Year US Treasury IndexSM and do not guarantee the quality, accuracy or completeness of The BofA Merrill Lynch 3-7 Year US Treasury IndexSM, index values or any index related data included herein, provided herewith or derived therefrom and assume no liability in connection with their use. As the index provider, BofA Merrill Lynch is licensing certain trademarks, The The BofA Merrill Lynch 3-7 Year US Treasury IndexSM and trade names which are composed by BofA Merrill Lynch without regard to PIMCO, the PIMCO 3-7 Year U.S. Treasury Index Fund or any investor. BofA Merrill Lynch and BofA Merrill Lynch’s affiliates do not provide investment advice to PIMCO or the PIMCO 3-7 Year U.S. Treasury Index Fund and are not responsible for the performance of the PIMCO 3-7 Year U.S. Treasury Index Fund.

Sector AllocationAs of 01/31/2010
 % of Market Value% of Duration
SectorFund+IndexFund+Index
Government99%100%100%100%
Mortgage0%0%0%0%
Investment Grade Credit0%0%0%0%
High Yield Credit0%0%0%0%
Non-U.S. Developed0%0%0%0%
Emerging Markets0%0%0%0%
Municipal/Other0%0%0%0%
Net Cash Equivalents1%0%0%0%
+Fund inception date was 10/30/2009

Top 10 Holdings As of 02/05/2010

Description%SectorCouponMaturityQuality
U S TREASURY NOTE 6.99%Treasury3.1308/31/2013AAA
U S TREASURY NOTE 5.59%Treasury3.5005/31/2013AAA
U S TREASURY NOTE 4.92%Treasury3.1304/30/2013AAA
U S TREASURY BOND 4.66%Treasury7.2505/15/2016AAA
U S TREASURY NOTE 4.43%Treasury2.3803/31/2016AAA
U S TREASURY NOTE 4.07%Treasury3.2505/31/2016AAA
U S TREASURY NOTE 4.00%Treasury2.3809/30/2014AAA
U S TREASURY NOTE 3.99%Treasury2.6312/31/2014AAA
U S TREASURY NOTE 3.98%Treasury2.6306/30/2014AAA
U S TREASURY NOTE 3.94%Treasury2.1311/30/2014AAA
Summary46.57%of holdings in the top 10


Quality DistributionAs of 01/31/2010
QualityFund %+Index %
A1/P10%0%
AAA100%100%
AA0%0%
A0%0%
Below A1/P10%0%
BAA0%0%
BB0%0%
B0%0%
Below B0%0%
+Fund inception date was 10/30/2009

Maturity DistributionAs of 01/31/2010
YearsFund %+Index %
0-11%0%
1-30%0%
3-562%61%
5-1037%39%
10-200%0%
20+0%0%
Average4.88 yr4.91 yr
+Fund inception date was 10/30/2009

All Holdings Download as Spreadsheet › As of 02/05/2010

%DescriptionCoupon RateMaturity DateMarket PriceMarket ValuePar ValueCurrencyQualitySectorCUSIP
1.34%U S TREASURY BOND 11.25002/15/2015143.05514,997360,000USDAAA Treasury912810DP0
1.55%U S TREASURY BOND 10.62508/15/2015142.58597,403419,000USDAAA Treasury912810DS4
2.06%U S TREASURY BOND 9.87511/15/2015139.57792,760568,000USDAAA Treasury912810DT2
1.49%U S TREASURY BOND 9.25002/15/2016137.05572,856418,000USDAAA Treasury912810DV7
4.66%U S TREASURY BOND 7.25005/15/2016125.911,794,2761,425,000USDAAA Treasury912810DW5
3.47%U S TREASURY BOND 7.50011/15/2016128.081,335,8561,043,000USDAAA Treasury912810DX3
1.00%U S TREASURY NOTE 3.87502/15/2013107.78383,701356,000USDAAA Treasury912828AU4
1.17%U S TREASURY NOTE 2.87501/31/2013104.80450,660430,000USDAAA Treasury912828HQ6
4.92%U S TREASURY NOTE 3.12504/30/2013105.501,894,7821,796,000USDAAA Treasury912828HY9
5.59%U S TREASURY NOTE 3.50005/31/2013106.702,153,1132,018,000USDAAA Treasury912828JB7
6.99%U S TREASURY NOTE 3.12508/31/2013105.402,689,7702,552,000USDAAA Treasury912828JK7
1.80%U S TREASURY NOTE 2.75010/31/2013103.99694,668668,000USDAAA Treasury912828JQ4
2.39%U S TREASURY NOTE 2.00011/30/2013101.18921,747911,000USDAAA Treasury912828JT8
3.38%U S TREASURY NOTE 1.50012/31/201399.151,300,8281,312,000USDAAA Treasury912828JW1
3.37%U S TREASURY NOTE 1.87502/28/2014100.271,298,5421,295,000USDAAA Treasury912828KF6
3.79%U S TREASURY NOTE 1.75003/31/201499.591,459,0491,465,000USDAAA Treasury912828KJ8
3.79%U S TREASURY NOTE 1.87504/30/201499.961,460,4301,461,000USDAAA Treasury912828KN9
4.43%U S TREASURY NOTE 2.37503/31/201698.021,703,6481,738,000USDAAA Treasury912828KT6
4.07%U S TREASURY NOTE 3.25005/31/2016102.721,566,4621,525,000USDAAA Treasury912828KW9
3.98%U S TREASURY NOTE 2.62506/30/2014102.781,530,4141,489,000USDAAA Treasury912828KY5
3.87%U S TREASURY NOTE 2.62507/31/2014102.661,489,5431,451,000USDAAA Treasury912828LC2
3.32%U S TREASURY NOTE 3.25007/31/2016102.511,279,2991,248,000USDAAA Treasury912828LD0
3.78%U S TREASURY NOTE 2.37508/31/2014101.461,454,9511,434,000USDAAA Treasury912828LK4
3.21%U S TREASURY NOTE 3.00008/31/2016100.791,236,6821,227,000USDAAA Treasury912828LL2
4.00%U S TREASURY NOTE 2.37509/30/2014101.301,539,8251,520,000USDAAA Treasury912828LQ1
2.87%U S TREASURY NOTE 3.12510/31/2016101.191,104,9691,092,000USD Treasury912828LU2
3.94%U S TREASURY NOTE 2.12511/30/201499.881,516,1071,518,000USDAAA Treasury912828LZ1
2.54%U S TREASURY NOTE 2.75011/30/201698.73978,381991,000USDAAA Treasury912828MA5
2.35%U S TREASURY NOTE 3.25012/31/2016101.66903,725889,000USD Treasury912828MD9
3.99%U S TREASURY NOTE 2.62512/31/2014102.021,534,4301,504,000USDAAA Treasury912828ME7
0.05%Cash ------19,243--USD Net Cash--
0.84%Other*1 ------322,639--USD Net Cash--
1 Other includes accrued interest and unsettled trades.

Investors should consider the investment objectives, risks, charges and expenses of the funds carefully before investing. This and other information are contained in the fund’s prospectus, which may be obtained by contacting your PIMCO representative or by clicking HERE. Please read the prospectus carefully before you invest or send money.


In order to provide additional information regarding the intra-day value of shares of the Fund, the NYSE Arca, Inc. or a market data vendor disseminates every 15 seconds through the facilities of the Consolidated Tape Association or other widely disseminated means an updated Indicative NAV (“iNAV”) for the Fund as calculated by an information provider or market data vendor. The Fund is not involved in or responsible for any aspect of the calculation or dissemination of the iNAV and makes no representation or warranty as to the accuracy of the iNAV.

Shares of the fund are not individually redeemable and shares may only be acquired from and redeemed by the fund in Creation Units. Investors may sell or purchase individual shares in secondary market transactions that do not involve the ETF. Shares of the Funds are bought and sold at market price (not NAV). Brokerage commissions will reduce returns. Please see the prospectus for more details.

Investing in the bond market is subject to certain risks including the risk that fixed income securities will decline in value because of changes in interest rates; the risk that fund shares could trade at prices other than the net asset value; and the risk that the manager's investment decisions might not produce the desired results. Certain U.S. Government securities are backed by the full faith of the government. Obligations of U.S. Government agencies and authorities are supported by varying degrees but are generally not backed by the full faith of the U.S. Government; portfolios that invest in such securities are not guaranteed and will fluctuate in value. The credit quality of a particular security or group of securities does not ensure the stability or safety of the overall portfolio. Portfolio structure is subject to change without notice and may not be representative of current or future allocations. The credit quality of a particular security or group of securities does not ensure the stability or safety of the overall portfolio. The Average Credit Quality ratings are provided to indicate the credit worthiness of the underlying bonds in the portfolio and generally range from Aaa (highest) to B (lowest).  The Quality Ratings presented is the highest of either S&P, Moody’, or Fitch. If an issue or issuer is unrated it is assigned an equivalent rating by a PIMCO portfolio Manager.

Exchange Traded Funds (“ETF”) are afforded certain exemptions from the Investment Company Act. The exemptions allow, among other things, for individual shares to trade on the secondary market. Individual shares cannot be directly purchased from or redeemed by the fund. Purchases and redemptions directly with ETFs are only accomplished through creation unit aggregations or “baskets” of shares. An investment in an ETF involves risk, including the loss of principal. Investment return, price, yield, and NAV will fluctuate with changes in market conditions. Investment policies, management fees and other information can be found in the individual ETF’s prospectus.

ETFs are subject to secondary market trading risks. Shares of the Fund will be listed for trading on an exchange, however, there can be no guarantee that an active trading market for such shares will develop or continue. There can be no guarantee that the Fund’s exchange listing or ability to trade its shares will continue or remain unchanged. Shares of the Fund may trade on an exchange at prices at, above or below their most recent NAV. The per share NAV of the Fund is calculated at the end of each business day, and fluctuates with changes in the market value of the Fund’s holdings. The trading prices of the Fund’s shares fluctuate continuously throughout the trading day based on market supply and demand, which may not correlate to NAV. The trading prices of the Fund’s shares may differ significantly from NAV during periods of market volatility, which may, among other factors, lead to the Fund’s shares trading at a premium or discount to NAV.

The BofA Merrill Lynch 3-7 Year US Treasury IndexSM is an unmanaged index that tracks the performance of the direct Sovereign debt of the U.S. Government with at least $1 billion in outstanding face value and a remaining term to final maturity of at least 3 years and less than 7 years. It is not possible to invest directly in an unmanaged index.

*“BofA Merrill Lynch” and “The BofA Merrill Lynch 3-7 Year US Treasury IndexSM” are reprinted with permission. © Copyright 2009 Merrill Lynch, Pierce, Fenner & Smith Incorporated (“BofA Merrill Lynch”). All rights reserved. “BofA Merrill Lynch” and “The BofA Merrill Lynch 3-7 Year US Treasury IndexSM” are service marks of BofA Merrill Lynch and/or its affiliates and have been licensed for use for certain purposes by PIMCO on behalf of the PIMCO 3-7 Year U.S. Treasury Index Fund that is based on The BofA Merrill Lynch 3-7 Year US Treasury IndexSM, and is not issued, sponsored, endorsed or promoted by BofA Merrill Lynch and/or BofA Merrill Lynch’s affiliates nor is BofA Merrill Lynch and/or BofA Merrill Lynch’s affiliates an adviser to the PIMCO 3-7 Year U.S. Treasury Index Fund. BofA Merrill Lynch and BofA Merrill Lynch’s affiliates make no representation, express or implied, regarding the advisability of investing in the PIMCO 3-7 Year U.S. Treasury Index Fund or The BofA Merrill Lynch 3-7 Year US Treasury IndexSM and do not guarantee the quality, accuracy or completeness of The BofA Merrill Lynch 3-7 Year US Treasury IndexSM, index values or any index related data included herein, provided herewith or derived therefrom and assume no liability in connection with their use. As the index provider, BofA Merrill Lynch is licensing certain trademarks, The The BofA Merrill Lynch 3-7 Year US Treasury IndexSM and trade names which are composed by BofA Merrill Lynch without regard to PIMCO, the PIMCO 3-7 Year U.S. Treasury Index Fund or any investor. BofA Merrill Lynch and BofA Merrill Lynch’s affiliates do not provide investment advice to PIMCO or the PIMCO 3-7 Year U.S. Treasury Index Fund and are not responsible for the performance of the PIMCO 3-7 Year U.S. Treasury Index Fund.

Investment Strategies 

Investors should consider the investment objectives, risks, charges and expenses of the funds carefully before investing. This and other information are contained in the fund’s prospectus, which may be obtained by contacting your PIMCO representative or by clicking HERE. Please read the prospectus carefully before you invest or send money.


In order to provide additional information regarding the intra-day value of shares of the Fund, the NYSE Arca, Inc. or a market data vendor disseminates every 15 seconds through the facilities of the Consolidated Tape Association or other widely disseminated means an updated Indicative NAV (“iNAV”) for the Fund as calculated by an information provider or market data vendor. The Fund is not involved in or responsible for any aspect of the calculation or dissemination of the iNAV and makes no representation or warranty as to the accuracy of the iNAV.

Shares of the fund are not individually redeemable and shares may only be acquired from and redeemed by the fund in Creation Units. Investors may sell or purchase individual shares in secondary market transactions that do not involve the ETF. Shares of the Funds are bought and sold at market price (not NAV). Brokerage commissions will reduce returns. Please see the prospectus for more details.

Exchange Traded Funds (“ETF”) are afforded certain exemptions from the Investment Company Act. The exemptions allow, among other things, for individual shares to trade on the secondary market. Individual shares cannot be directly purchased from or redeemed by the fund. Purchases and redemptions directly with ETFs are only accomplished through creation unit aggregations or “baskets” of shares. An investment in an ETF involves risk, including the loss of principal. Investment return, price, yield, and NAV will fluctuate with changes in market conditions. Investment policies, management fees and other information can be found in the individual ETF’s prospectus.

ETFs are subject to secondary market trading risks. Shares of the Fund will be listed for trading on an exchange, however, there can be no guarantee that an active trading market for such shares will develop or continue. There can be no guarantee that the Fund’s exchange listing or ability to trade its shares will continue or remain unchanged. Shares of the Fund may trade on an exchange at prices at, above or below their most recent NAV. The per share NAV of the Fund is calculated at the end of each business day, and fluctuates with changes in the market value of the Fund’s holdings. The trading prices of the Fund’s shares fluctuate continuously throughout the trading day based on market supply and demand, which may not correlate to NAV. The trading prices of the Fund’s shares may differ significantly from NAV during periods of market volatility, which may, among other factors, lead to the Fund’s shares trading at a premium or discount to NAV.

Investing in the bond market is subject to certain risks including the risk that fixed income securities will decline in value because of changes in interest rates; the risk that fund shares could trade at prices other than the net asset value; and the risk that the manager's investment decisions might not produce the desired results.  Certain U.S. Government securities are backed by the full faith of the government. Obligations of U.S. Government agencies and authorities are supported by varying degrees but are generally not backed by the full faith of the U.S. Government; portfolios that invest in such securities are not guaranteed and will fluctuate in value. The credit quality of a particular security or group of securities does not ensure the stability or safety of the overall portfolio. Portfolio structure is subject to change without notice and may not be representative of current or future allocations.

The BofA Merrill Lynch 3-7 Year US Treasury IndexSM is an unmanaged index that tracks the performance of the direct Sovereign debt of the U.S. Government with at least $1 billion in outstanding face value and a remaining term to final maturity of at least 3 years and less than 7 years. It is not possible to invest directly in an unmanaged index.

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