Prospectus

October 31, 2025 (as supplemented January 6, 2026)

 

PIMCO Flexible Emerging Markets Income Fund (the “Fund”) is a non-diversified,

closed-end management investment company with limited operating history that continuously

offers its shares of beneficial interest, par value of $0.00001 per share (the “Common

Shares”), and is operated as an “interval fund.” The Fund currently offers five separate classes

of Common Shares: Institutional Class, Class A-1, Class A-2, Class A-3 and Class A-4.

 

The Fund seeks to provide attractive risk-adjusted returns and current

income.

 

The Fund seeks to achieve its investment objective by investing, under

normal circumstances, across a wide array of instruments, including from sovereign,

quasi-sovereign and corporate borrowers, that are economically tied to “emerging market”

countries. The Fund utilizes a flexible asset allocation strategy among multiple public and

private credit sectors in the emerging market credit markets, including corporate debt

(including, among other things, fixed-, variable- and floating-rate bonds, loans, convertible and

contingent convertible securities and stressed, distressed and defaulted debt securities issued

by corporations or other business entities), mortgage-related and other consumer-related

instruments, collateralized debt obligations, including, without limitation, collateralized loan

obligations, government, sovereign and quasi-sovereign debt and other fixed-, variable- and

floating-rate income-producing securities. The Fund may invest without limit in investment

grade debt securities and in below investment grade debt securities (commonly referred to as

“high yield” securities or “junk bonds”), including securities of stressed, distressed or defaulted

issuers. Pacific Investment Management Company LLC (“PIMCO” or the “Investment

Manager”), the Fund’s investment manager, employs an active approach to allocation among

multiple credit sectors based on, among other things, market conditions, valuation

assessments, economic outlook, credit market trends and other economic factors.

The Fund has no targeted average portfolio duration and the Fund’s average portfolio duration

may vary significantly depending on market conditions and other factors. It is expected that the

Fund normally will have a short to longer average portfolio duration (i.e., within a zero to 12

year range), as calculated by the Investment Manager, although it may be shorter or longer at

any time or from time to time depending on market conditions and other factors.

PIMCO has broad discretion to identify countries that it considers to qualify as “emerging markets.” In exercising such discretion, PIMCO

identifies countries as emerging markets consistent with the Fund’s investment objective. The Fund will generally consider a country to be an

emerging market country based on a number of factors including if the country is classified as an emerging or developing economy by the World

Bank or if the country is considered an emerging market country for purposes of constructing certain emerging markets indexes, specifically, the

J.P. Morgan Emerging Market Bond Index, J.P. Morgan Government Bond Index-Emerging Markets and J.P. Morgan Corporate Emerging

Markets Bond Index. The Fund emphasizes countries with relatively low gross national product per capita and with the potential for rapid

economic growth. PIMCO will select the Fund’s country and currency composition based on its evaluation of relative interest rates, inflation rates,

exchange rates, monetary and fiscal policies, trade and current account balances, legal and political developments and any other specific factors

PIMCO believes to be relevant. For the avoidance of doubt, the Fund considers frontier markets to be a subset of “emerging markets.”

The Fund likely will focus its investments in Asia, Africa, the Middle East, Latin America and the developing countries of Europe. The Fund may

invest in instruments whose return is based on the return of an emerging market security or a currency of an emerging market country, such as a

derivative instrument, rather than investing directly in emerging market securities or currencies.

The Fund may invest in and/or originate loans, including, without limitation, residential and/or commercial real estate or mortgage-related loans,

consumer loans or other types of loans, which may be in the form of, and without limitation as to a loan’s level of seniority within a capital

structure, whole loans, assignments, participations, secured and unsecured notes, senior and second lien loans, mezzanine loans, bridge loans

or similar investments. The Fund may invest in and/or originate loans to corporations and/or other legal entities and individuals, including foreign

(non-U.S.) and emerging market entities and individuals.

The Fund may invest either directly or indirectly through wholly owned subsidiaries (“Subsidiaries”) in shares, certificates, notes or other

securities issued by a special purpose entity (“SPE”) sponsored by an alternative lending platform or its affiliates (the “Sponsor”) that represent

the right to receive principal and interest payments due on pools of whole loans or fractions of whole loans, which may (but may not) be issued by

the Sponsor, held by the SPE (“Alt Lending ABS”). Any such Alt Lending ABS may be backed by consumer, residential or other loans.

When acquiring and/or originating loans, or purchasing Alt Lending ABS, the Fund is not restricted by any particular borrower credit criteria.

Accordingly, certain loans acquired or originated by the Fund or underlying any Alt Lending ABS purchased by the Fund may be subprime in

quality, or may become subprime in quality.

 

The Fund is an “interval fund,” a type of fund that, in order to provide liquidity to shareholders, has adopted a

fundamental investment policy to make quarterly offers to repurchase between 5% and 25% of its outstanding Common Shares at net asset

value. Subject to applicable law and approval of the Fund’s Board of Trustees, for each quarterly repurchase offer, the Fund currently expects to

offer to repurchase 5% of the Fund’s outstanding Common Shares at net asset value, which is the minimum amount permitted.

 

The Fund currently utilizes leverage principally through reverse repurchase agreements and may also obtain leverage through credit

default swaps, dollar rolls/buybacks and borrowings, such as through bank loans or commercial paper and/or other credit facilities. The Fund may

also enter into transactions other than those noted above that may give rise to a form of leverage including, among others, futures and forward

contracts (including foreign currency exchange contracts), credit default swaps, total return swaps and other derivative transactions, loans of

portfolio securities, short sales and when-issued, delayed delivery and forward commitment transactions. The Fund may also determine to issue

preferred shares or other types of senior securities to add leverage to its portfolio. The Fund’s Board of Trustees may authorize the issuance of

preferred shares without the approval of holders of Common Shares (“Common Shareholders”). If the Fund issues preferred shares in the future,

all costs and expenses relating to the issuance and ongoing maintenance of the preferred shares will be borne by the Common Shareholders,

and these costs and expenses may be significant. Leveraging transactions pursued by the Fund may increase its duration and sensitivity to

interest rate changes and other market risks. The Fund intends to utilize reverse repurchase agreements, dollar rolls/buybacks, borrowings and

other forms of leverage opportunistically and may choose to increase or decrease, or eliminate entirely, its use of leverage over time and from

time to time based on PIMCO’s assessment of the yield curve environment, interest rate trends, market conditions and other factors. By using

leverage, the Fund seeks to obtain a higher return for Common Shareholders than if the Fund did not use leverage. Leveraging is a speculative

technique and there are special risks and costs involved. There can be no assurance that a leveraging strategy will be used or that it will be

successful during any period in which it is employed.

Institutional Class, Class A-1, Class A-2, Class A-3 and Class A-4 Common Shares are offered in this prospectus. Each share class represents

an investment in the same portfolio of investments, but each class has its own expense structure and arrangements for shareholder services or

distribution, which allows you to choose the class that best fits your situation and eligibility requirements. Class A-1, Class A-2, Class A-3 and

Class A-4 Common Shares are primarily offered and sold to retail investors by certain broker-dealers that are members of the Financial Industry

Regulatory Authority and that have agreements with PIMCO Investments LLC, the Fund's principal underwriter and distributor, to sell Class A-1,

Class A-2, Class A-3 and/or Class A-4 Common Shares, but may be made available through other financial firms, including banks and trust

companies and to specified benefit plans and other retirement accounts. Only certain investors are eligible to purchase Institutional

Class Common Shares. See “Plan of Distribution – Share Classes.”

The minimum initial investment for Institutional Class Common Shares is $1 million per account, except that the minimum investment may be

higher or lower for certain financial firms that submit orders on behalf of their customers, including retail investors in separately managed

accounts (i.e., wrap accounts) managed by PIMCO, the Trustees and certain employees and their extended family members of PIMCO and its

affiliates. There is no minimum subsequent investment amount. See “Plan of Distribution – Share Classes.”

The minimum initial investment for Class A-1, Class A-2, Class A-3 and Class A-4 Common Shares is $2,500 per account, except that the

minimum investment may be higher or lower for certain financial firms that submit orders on behalf of their customers, the Trustees and certain

employees and their extended family members of PIMCO and its affiliates. The minimum subsequent investment amount for Class A-1,

Class A-2, Class A-3 and Class A-4 Common Shares is $50. See “Plan of Distribution — Purchasing Shares.”

The Fund’s Common Shares are sold at a public offering price equal to their net asset value per share, plus a sales charge, where applicable.

See “Plan of Distribution-Purchasing Shares.” Please read this prospectus carefully before deciding whether to invest and retain it for future

reference. It sets forth concisely the information about the Fund that a prospective investor ought to know before investing in the Fund. The Fund

has filed with the Securities and Exchange Commission (“SEC”) a Statement of Additional Information dated October 31, 2025, as it may be

supplemented from time to time, (the “Statement of Additional Information”), containing additional information about the Fund. The Statement of

Additional Information is incorporated by reference into this prospectus, which means it is part of this prospectus for legal purposes. The Fund

also produces both annual and semi-annual reports that will contain important information about the Fund. Copies of the Statement of Additional

Information and the Fund’s annual and semi-annual reports, when available, may be obtained upon request, without charge, by calling

The Fund’s Common Shares do not represent a deposit or obligation of, and are not guaranteed or endorsed by, any bank or other insured

depository institution, and are not federally insured by the Federal Deposit Insurance Corporation, the Federal Reserve Board or any other

government agency.

The Fund has not authorized anyone to provide you with information other than that contained or incorporated by reference in this prospectus.

The Fund does not take any responsibility for, and does not provide any assurances as to the reliability of, any other information that others may

give you. The Fund is not making an offer of these securities in any jurisdiction where the offer is not permitted. You should not assume that the

information contained in this prospectus is accurate as of any date other than the date on the front of this prospectus. The Fund’s business,

financial condition, results of operations and prospects may have changed since that date.

Prospectus Summary

The Fund is a non-diversified, closed-end management investment

company that continuously offers its Common Shares. The Fund

commenced operations on March 15, 2022. The Fund is operated as an

“interval fund” (as defined below). The Fund currently offers five

separate classes of Common Shares of the Fund: Institutional Class,

Class A-1, Class A-2, Class A-3 and Class A-4. An investment in the Fund

may not be appropriate for all investors.

The Fund continuously offers its Common Shares through PIMCO

Investments LLC (the “Distributor”), as principal underwriter, on a best

efforts basis. Except as set forth below, Common Shares are sold at their

offering price, which is net asset value (“NAV”) per share. While neither

the Fund nor the Distributor impose an initial sales charge on

Institutional Class, Class A-1 or Class A-3 Common Shares, if you buy

Institutional Class, Class A-1 or Class A-3 Common Shares through

certain financial firms, they may directly charge you transaction or other

fees in such amount as they may determine. Please consult your

financial firm for additional information.

Unless you are eligible for a waiver, Class A-2 and Class A-4 Common

Shares are sold at a public offering price equal to their net asset value

plus an initial sales charge. The initial sales charge varies depending

upon the size of your purchase. The minimum initial investment for

Institutional Class Common Shares is $1 million per account. The

minimum initial investment for Class A-1, Class A-2, Class A-3 and

Class A-4 Common Shares is $2,500 per account. These investment

minimums may be higher or lower for certain financial firms that submit

orders on behalf of their customers, the Trustees and certain employees

and their extended family members of Pacific Investment Management

Company LLC (“PIMCO” or the “Investment Manager”), the Fund’s

investment manager, PIMCO and its affiliates. The minimum subsequent

investment amount for Class A-1, Class A-2, Class A-3 and Class A-4

Common Shares is $50. Proceeds from the offering will be held by the

Fund's custodian.

For additional information regarding each share class please see “Plan

of Distribution – Share Classes” in this prospectus. The Fund and the

Distributor each reserves the right, in its sole discretion, to reject any

purchase order, in whole or in part. Shareholders will not have the right

to redeem their Common Shares. However, as described below, in order

to provide some liquidity to shareholders, the Fund will conduct periodic

repurchase offers for a portion of its outstanding Common Shares.

Periodic Repurchase Offers

The Fund is an “interval fund,” a type of fund that, in order to provide

liquidity to shareholders, has adopted a fundamental investment policy

to make quarterly offers to repurchase between 5% and 25% of its

outstanding Common Shares at NAV. Subject to applicable law and

approval of the Fund’s Board of Trustees (the “Board” or “Board of

Trustees”), for each quarterly repurchase offer, the Fund currently

expects to offer to repurchase 5% of the Fund’s outstanding Common

Shares at NAV, which is the minimum amount permitted. Written

notification of each quarterly repurchase offer (the “Repurchase Offer

Notice”) will be sent to shareholders at least 21 calendar days before

the repurchase request deadline (i.e., the date by which shareholders

can tender their Common Shares in response to a repurchase offer) (the

“Repurchase Request Deadline”). Subject to Board approval,

Repurchase Request Deadlines are expected to occur each February,

May, August and November, and Repurchase Offer Notices are expected

to be sent to shareholders each January, April, July and October

preceding each such Repurchase Request Deadline. The Fund’s Common

Shares are not listed on any securities exchange, and the Fund

anticipates that no secondary market will develop for its Common

Shares. Accordingly, shareholders may not be able to sell Common

Shares when and/or in the amount desired. Investors should consider

Common Shares of the Fund to be an illiquid investment. Thus, the

Common Shares are appropriate only as a long-term investment. In

addition, the Fund’s repurchase offers may subject the Fund and

shareholders to special risks. See “Principal Risks of the Fund —

Repurchase Offers Risk.”

When used in this prospectus, the term “invest” includes both direct

investing and indirect investing and the term “investments” includes

both direct investments and indirect investments. For example, the Fund

may invest indirectly by investing in derivatives or through wholly

owned subsidiaries (each, a “Subsidiary”). The Fund may be exposed to

the different types of investments described below through its

investments in its Subsidiaries. The allocation of the Fund’s assets to a

Subsidiary will vary over time and will likely not include all of the

different types of investments described herein at any given time.

The Fund’s investment objective is to seek to provide attractive risk

adjusted returns and current income.

The Fund seeks to achieve its investment objective by investing, under

normal circumstances, across a wide array of instruments, including

from sovereign, quasi-sovereign and corporate borrowers, that are

economically tied to “emerging market” countries. The Fund utilizes a

flexible asset allocation strategy among multiple public and private

credit sectors in the emerging market credit markets, including corporate

debt (including, among other things, fixed-, variable- and floating-rate

bonds, loans, convertible and contingent convertible securities and

stressed, distressed or defaulted debt securities issued by corporations

or other business entities), mortgage-related and other

consumer-related instruments, collateralized debt obligations, including,

without limitation, collateralized loan obligations, government,

Interval Funds |

 

In managing the Fund, PIMCO employs

an active approach to allocation among multiple credit sectors based

on, among other things, market conditions, valuation assessments,

economic outlook, credit market trends and other economic factors.

With PIMCO’s macroeconomic analysis as the basis for top-down

investment decisions, including geographic and credit sector emphasis,

the Fund expects to focus on seeking attractive risk-adjusted returns

across multiple credit sectors. PIMCO may choose to focus on particular

countries or emerging market regions, asset classes, industries and

sectors to the exclusion of others at any time and from time to time

based on market conditions and other factors. The relative value

assessment within credit sectors draws on PIMCO’s regional and sector

specialist insights.

 

Once the Fund’s top-down,

portfolio positioning decisions have been made as described above,

PIMCO generally selects particular investments for the Fund by

employing a bottom-up, disciplined credit approach which is driven by

fundamental, independent research within each sector represented in

the Fund, with a focus on identifying securities and other instruments

with solid and/or improving fundamentals.

PIMCO utilizes strategies that focus on credit quality analysis, duration

management and other risk management techniques. PIMCO attempts

to identify, through fundamental research driven by independent credit

analysis and proprietary analytical tools, debt obligations and other

income-producing securities that provide positive risk-adjusted returns

based on its analysis of the issuer’s credit characteristics and the

position of the security in the issuer’s capital structure.

Consideration of yield is only one component of the portfolio managers’

approach in managing the Fund. PIMCO also attempts to identify

investments that may appreciate in value based on PIMCO’s assessment

of the issuer’s credit characteristics, forecast for interest rates and

outlook for particular countries/regions, currencies, industries, sectors

and the global economy and bond markets generally.

 

The Fund may invest without limitation in debt

instruments that are, at the time of purchase, rated below investment

grade (below Baa3 by Moody’s Ratings (“Moody’s”) or below BBB- by

either S&P Global Ratings (“S&P”) or Fitch Ratings, Inc. (“Fitch”)), or

unrated but determined by PIMCO to be of comparable quality to

securities so rated. The Fund may invest in securities of stressed,

distressed or defaulted issuers, which include securities at risk of being

 

PIMCO relies primarily on its own

analysis of the credit quality and risks associated with individual debt

instruments considered for the Fund, rather than relying exclusively on

rating agencies or third-party research. The Fund’s portfolio managers

utilize this information in an attempt to manage credit risk and/or to

identify issuers, industries and/or sectors that they believe are

undervalued and/or that offer potentially attractive yields relative to

PIMCO’s assessment of their credit characteristics. This aspect of

PIMCO’s capabilities will be particularly important in light of the Fund’s

plans to invest in instruments that are tied economically to emerging

markets, and to the extent that the Fund invests in high yield securities.

 

The Fund has no targeted average portfolio

duration and the Fund’s average portfolio duration may vary

significantly depending on market conditions and other factors. It is

expected that the Fund normally will have a short to longer average

portfolio duration (i.e., within a zero to 12 year range), as calculated by

the Investment Manager, although it may be shorter or longer at any

time depending on market conditions and other factors. For example, if

the Fund has an average portfolio duration of 12 years, a 1% increase in

interest rates would tend to correspond to a 12% decrease in the value

of the Fund’s portfolio. There is no limit on the maturity or duration of

any individual security in which the Fund may invest. Duration is a

measure used to determine the sensitivity of a security’s price to

changes in interest rates. The Fund’s duration strategy may entail

maintaining a negative average portfolio duration from time to time,

meaning the portfolio would tend to increase in value in response to an

increase in interest rates. If the Fund has a negative average portfolio

duration, a 1% increase in interest rates would tend to correspond to a

1% increase in the value of the Fund’s portfolio for every year of

negative duration. A negative average portfolio duration would

potentially benefit the portfolio in an environment of rising market

interest rates, but would generally adversely impact the portfolio in an

environment of falling or neutral market interest rates. PIMCO may also

October 31, 2025 (as supplemented January 6, 2026) |

  

 

The Fund will invest, under normal circumstances,

at least 80% of its net assets (plus any borrowings for investment

purposes) in a portfolio of instruments that are tied economically to

“emerging market” countries (the “80% policy”). Such instruments may

be denominated in non-U.S. currencies or the U.S. dollar. The 80% policy

is non-fundamental and may be changed without shareholder approval,

but the Fund will not change its 80% policy unless the Fund provides

shareholders with the notice required by Rule 35d-1 under the

Investment Company Act of 1940, as it may be amended from time to

time (the “1940 Act”).

For purposes of the 80% policy, debt instruments may include, without

limitation, bonds, debt securities and other similar instruments of

varying maturities issued by various U.S. and foreign (non-U.S.) public-

or private-sector entities; structured products, securitizations and other

asset-backed securities issued on a public or private basis (including

agency and non-agency residential mortgage-backed securities and

commercial mortgage-backed securities, collateralized bond obligations

(“CBOs”), collateralized loan obligations (“CLOs”), other collateralized

debt obligations (“CDOs”) and other similarly structured securities);

corporate debt securities of U.S. and non-U.S. issuers, including

convertible and contingent convertible securities and corporate

commercial paper; municipal securities and other debt securities issued

by states or local governments and their agencies, authorities and other

government-sponsored enterprises, including taxable municipal

securities; obligations of foreign governments or their sub-divisions,

agencies and government sponsored enterprises and obligations of

international agencies and supranational entities; securities issued or

guaranteed by the U.S. Government, its agencies or

government-sponsored enterprises (“U.S. Government Securities”);

loans (including, among others, and without limitation as to a loan’s

level of seniority within a capital structure, senior loans, mezzanine

loans, delayed draw and delayed funding loans, revolving credit facilities

and loan participations and assignments); loans held and/or originated

by private financial institutions, including commercial and residential

mortgage loans, corporate loans and consumer loans (such as credit

card receivables, automobile loans and student loans) (“private credit

assets”); payment-in-kind securities; zero-coupon bonds;

inflation-indexed bonds issued by both governments and corporations;

structured notes, including hybrid or indexed securities; insurance-linked

instruments, catastrophe bonds and other event-linked bonds;

credit-linked notes; covenant-lite obligations; preferred securities;

convertible debt securities (i.e., debt securities that may be converted at

either a stated price or stated rate into underlying shares of common

stock), including synthetic convertible debt securities (i.e., instruments

created through a combination of separate securities that possess the

For purposes of the Fund’s 80% policy, the Fund values its derivative

instruments based on their market value. For purposes of the 80%

policy, PIMCO has broad discretion to identify countries that it considers

to qualify as “emerging markets.” In exercising such discretion, PIMCO

identifies countries as emerging markets consistent with the Fund’s

investment objective. The Fund will generally consider a country to be an

emerging market country based on a number of factors including if the

country is classified as an emerging or developing economy by the

World Bank or if the country is considered an emerging market country

for purposes of constructing certain emerging markets indexes,

specifically, the J.P. Morgan Emerging Market Bond Index, J.P. Morgan

Government Bond Index-Emerging Markets and J.P. Morgan Corporate

Emerging Markets Bond Index. The Fund emphasizes countries with

relatively low gross national product per capita and with the potential

for rapid economic growth. PIMCO will select the Fund’s country and

currency composition based on its evaluation of relative interest rates,

inflation rates, exchange rates, monetary and fiscal policies, trade and

current account balances, legal and political developments and any

other specific factors PIMCO believes to be relevant. For the avoidance

of doubt, the Fund considers frontier markets to be a subset of

“emerging markets.”

PIMCO generally considers an instrument to be “economically tied” to

an emerging market country if: the issuer is organized under the laws of

an emerging market country; the currency of settlement of the security is

a currency of an emerging market country; the security is guaranteed by

the government of an emerging market country (or any political

subdivision, agency, authority or instrumentality of such government);

for an asset-backed or other collateralized security, the country in which

the collateral backing the security is located is an emerging market

country; or the security’s “country of exposure” is an emerging market

country, as determined by the criteria set forth below. With respect to

derivative instruments, PIMCO generally considers such instruments to

be “economically tied” to emerging market countries if the underlying

assets are currencies of emerging market countries (or baskets or

| Interval Funds

The Fund focuses its investments in Asia, Africa, the Middle East, Latin

America and the developing countries of Europe. The Fund may invest in

instruments whose return is based on the return of an emerging market

security or a currency of an emerging market country, such as a

derivative instrument, rather than investing directly in emerging market

securities or currencies.

The Fund may invest in and/or originate loans, including, without

limitation, residential and/or commercial real estate or mortgage-related

loans, consumer loans or other types of loans, which may be in the form

of whole loans, assignments, participations, secured and unsecured

notes, senior and second lien loans, mezzanine loans, bridge loans or

similar investments. The Fund may invest in and/or originate loans to

corporations and/or other legal entities and individuals, including

foreign (non-U.S.) and emerging market entities and individuals. Such

borrowers may have credit ratings that are determined by one or more

NRSROs or PIMCO to be below investment grade. The loans the Fund

invests in and/or originates may vary in maturity and/or duration. The

Fund is not limited in the amount, size or type of loans it may invest in

and/or originate, including with respect to a single borrower or with

respect to borrowers that are determined to be below investment grade,

other than pursuant to any applicable law. The Fund’s investments in

and/or origination of loans may also be limited by the requirements the

Fund intends to observe under Subchapter M of the Internal Revenue

Code of 1986, as amended (the “Code”) in order to qualify as a

regulated investment company (a “RIC”).

The Fund may, but is not required to, utilize various derivative strategies

(both long and short positions) involving the purchase or sale of futures

and forward contracts (including foreign currency exchange contracts),

call and put options, credit default swaps, total return swaps, basis

swaps and other swap agreements and other derivative instruments for

investment purposes, leveraging purposes or in an attempt to hedge

against market, credit, interest rate, currency and other risks in the

portfolio. The Fund may purchase and sell securities on a when-issued,

delayed delivery or forward commitment basis and may engage in short

sales. The Fund may also seek to obtain market exposure to the

securities in which it invests by entering into a series of purchase and

sale contracts. The Fund may use derivative instruments for other

purposes, including to seek to increase liquidity, provide efficient

portfolio management, broaden investment opportunities (including

taking short or negative positions), implement a tax or cash

management strategy, gain exposure to a particular security or segment

of the market, modify the effective duration of the Fund's portfolio

investments and/or enhance total return.

The Fund may invest in equity securities, including common stocks,

common shares of other investment companies (including those advised

by PIMCO), such as open-end or closed-end management investment

companies and domestic and foreign exchange-traded funds (“ETFs”),

shares of private funds or real estate investment trusts (“REITs”) and

preferred stock. The Fund's investments in private funds may include

private equity funds and hedge funds that rely on the exclusion from the

definition of “investment company” in Section 3(c)(1) or Section 3(c)(7)

of the 1940 Act. Common stocks include common shares and other

common equity interests issued by public or private issuers. The Fund

may invest in securities that have not been registered for public sale in

the U.S. or relevant non-U.S. jurisdiction, including without limitation

securities eligible for purchase and sale pursuant to Rule 144A under

the Securities Act of 1933, as amended (the “Securities Act”), or

relevant provisions of applicable non-U.S. law, and other securities

issued in private placements. The Fund may invest in securities of

companies with any market capitalization, including small, medium and

large capitalizations.

The Fund may invest, either directly or indirectly through its Subsidiaries,

in shares, certificates, notes or other securities issued by a special

purpose entity (“SPE”) sponsored by an alternative lending platform or

its affiliates (the “Sponsor”) that represent the right to receive principal

and interest payments due on pools of whole loans or fractions of whole

loans, which may (but may not) be issued by the Sponsor, held by the

SPE (“Alt Lending ABS”). Any such Alt Lending ABS may be backed by

consumer, residential or other loans.

October 31, 2025 (as supplemented January 6, 2026) |

  

To the extent consistent with the applicable liquidity requirements for

interval funds under Rule 23c-3 under the 1940 Act, the Fund may

invest without limit in illiquid investments.

The Fund may make investments in debt instruments and other

securities directly or through one or more Subsidiaries. Each Subsidiary,

for example, may invest in and/or originate whole loans or shares,

certificates, notes or other securities representing the right to receive

principal and interest payments due on fractions of whole loans or pools

of whole loans, or any other security or other instrument that the Fund

may hold directly. References herein to the Fund include references to a

Subsidiary in respect of the Fund’s investment exposure. The allocation

of the Fund’s portfolio in a Subsidiary will vary over time and might not

always include all of the different types of investments described herein.

The Fund will treat a Subsidiary’s assets as assets of the Fund for

purposes of determining compliance with various provisions of the 1940

Act applicable to the Fund, including those relating to investment

policies (Section 8), capital structure and leverage (Section 18) and

affiliated transactions and custody (Section 17). In addition, PIMCO and

the Fund’s Board of Trustees will comply with the provisions of

Section 15 of the 1940 Act with respect to a Subsidiary’s investment

advisory contract.

The Fund has received exemptive relief from the SEC that, to the extent

the Fund relies on such relief, permits it to (among other things)

co-invest with certain other persons, including certain affiliates of the

Investment Manager and certain public or private funds managed by the

Investment Manager and its affiliates, subject to certain terms and

conditions. The exemptive relief from the SEC with respect to

co-investments imposes extensive conditions on any co-investments

made in reliance on such relief.

 

The Fund currently utilizes leverage principally

through reverse repurchase agreements and may also obtain leverage

through credit default swaps, dollar rolls/buybacks and borrowings. The

Fund may also enter into transactions other than those noted above

that may give rise to a form of leverage including, among others, futures

and forward contracts (including foreign currency exchange contracts),

credit default swaps, total return swaps and other derivative

transactions, loans of portfolio securities, short sales and when-issued,

delayed delivery and forward commitment transactions. The Fund may

also determine to issue preferred shares or other types of senior

securities to add leverage to its portfolio. By using leverage, the Fund

will seek to obtain a higher return for holders of Common Shares than if

the Fund did not use leverage. The Fund’s Board of Trustees may

authorize the issuance of preferred shares without the approval of

Common Shareholders. If the Fund issues preferred shares in the future,

all costs and expenses relating to the issuance and ongoing

maintenance of the preferred shares will be borne by the Common

Shareholders, and these costs and expenses may be significant. The

The net proceeds the Fund obtains from reverse repurchase agreements,

credit default swaps, dollar rolls/buybacks or other forms of leverage

utilized will be invested in accordance with the Fund’s investment

objective and policies as described in this prospectus. So long as the rate

of return, net of applicable Fund expenses, on the debt obligations and

other Fund assets attributable to leverage exceeds the costs to the Fund

of the leverage it utilizes, the investment of the Fund’s assets

attributable to leverage will generate more income than will be needed

to pay the costs of the leverage. If so, and all other things being equal,

the excess may be used to pay higher dividends to Common

Shareholders than if the Fund were not so leveraged.

The 1940 Act generally prohibits the Fund from engaging in most forms

of leverage representing indebtedness (including the use of bank loans,

commercial paper or other credit facilities) unless immediately after the

issuance of the leverage the Fund has satisfied the asset coverage test

with respect to senior securities representing indebtedness prescribed

by the 1940 Act; that is, the value of the Fund’s total assets less all

liabilities and indebtedness not represented by senior securities (for

these purposes, “total net assets”) is at least 300% of the senior

securities representing indebtedness (effectively limiting the use of

leverage through senior securities representing indebtedness to 33

 1

∕

3

%

of the Fund’s total net assets, including assets attributable to such

leverage). In addition, the Fund is not permitted to declare any cash

dividend or other distribution on Common Shares unless, at the time of

such declaration, this asset coverage test is satisfied. The Fund's use of

derivatives transactions and other similar instruments is generally

subject to a value-at-risk leverage limit, derivatives risk management

program, and reporting requirements under Rule 18f-4 under the 1940

Act unless the Fund qualifies as a “limited derivatives user” as defined

in the rule or the Fund's use of such an instrument satisfies the

conditions of certain exemptions under the rule. Derivatives, reverse

repurchase agreements and other such instruments may represent a

form of economic leverage and create special risks. The use of these

forms of leverage increases the volatility of the Fund's investment

portfolio and could result in larger losses to Common Shareholders than

if these strategies were not used. To the extent that the Fund engages in

borrowings, it may prepay a portion of the principal amount of the

borrowing to the extent necessary in order to maintain the required

asset coverage. Failure to maintain certain asset coverage requirements

could result in an event of default by the Fund with respect to bank

borrowings or other arrangements.

Leveraging is a speculative technique and there are special risks and

costs involved. There is no assurance that the Fund will utilize reverse

repurchase agreements, credit default swaps, dollar rolls/buybacks or

borrowings, issue preferred shares or utilize any other forms of leverage

(such as the use of derivatives strategies). If used, there can be no

| Interval Funds

The Fund also may borrow money in order to repurchase its shares or as

a temporary measure for extraordinary or emergency purposes,

including for the payment of dividends or the settlement of securities

transactions which otherwise might require untimely dispositions of

portfolio securities held by the Fund. Please see “Use of Leverage,”

“Principal Risks of the Fund—Leverage Risk” for additional information

regarding leverage and related risks.

PIMCO serves as the Investment Manager for the Fund. Subject to the

supervision of the Board, PIMCO is responsible for managing the

investment activities of the Fund and the Fund’s business affairs and

other administrative matters. Pramol Dhawan, Michal Bar and Brian T.

Holmes are jointly and primarily responsible for the day-to-day

management of the Fund.

PIMCO is located at 650 Newport Center Drive, Newport Beach, CA

92660. Organized in 1971, PIMCO provides investment management

and advisory services to private accounts of institutional and individual

clients and to mutual funds. PIMCO is a majority-owned indirect

subsidiary of Allianz SE, a publicly traded European insurance and

financial services company. As of September 30, 2025, PIMCO had

approximately $2.20 trillion in assets under management, including

$1.78 trillion in third-party client assets.

 

PIMCO has contractually agreed,

through November 3, 2026, (the “Expense Limitation Agreement”), to

waive its management fee, or reimburse the Fund, to the extent that

organizational expenses, pro rata share of expenses related to obtaining

or maintaining a Legal Entity Identifier and pro rata Trustees’ fees (the

“Specified Expenses”) exceed 0.07% of the Fund’s average daily net

assets (the “Expense Limit”). The Expense Limitation Agreement will

automatically renew for one-year terms unless PIMCO provides written

notice to the Fund at least 30 days prior to the end of the current term,

or unless the Fund terminates the agreement upon 90 days notice of the

Fund's investment management agreement with PIMCO terminates.

The Fund intends to distribute substantially all of its net investment

income to shareholders in the form of dividends. The Fund intends to

declare income dividends daily and distribute them monthly to

shareholders of record. In addition, the Fund intends to distribute any

net capital gains earned from the sale of portfolio securities to

shareholders no less frequently than annually. Net short-term capital

gains may be paid more frequently.

Unless shareholders specify otherwise, distributions will be reinvested in

Common Shares of the Fund in accordance with the Fund’s dividend

reinvestment plan (the “Plan”). The Fund may pay distributions from

sources that may not be available in the future and that are unrelated to

the Fund’s performance, such as from offering proceeds and/or

borrowings. See “Distributions” and “Dividend Reinvestment Plan.”

The Fund might not distribute all or a portion of any net capital gain for

a taxable year. If the Fund does not distribute all of its net capital gain

for a taxable year, it will pay federal income tax on the retained gain.

Each Common Shareholder of record as of the end of the Fund's taxable

year will include in income for federal income tax purposes, as

long-term capital gain, his or her share of the retained gain, will be

deemed to have paid his or her proportionate share of the tax paid by

the Fund on such retained gain, and will be entitled to an income tax

credit or refund for that share of the tax. The Fund will treat the retained

capital gain amount as a substitute for equivalent cash distributions. The

Fund will send shareholders detailed tax information with respect to the

Fund's distributions annually. See “Tax Matters.”

PIMCO Investments LLC, an affiliate of PIMCO, serves as the Fund’s

principal underwriter and distributor. State Street Bank and Trust

Company serves as the primary custodian of the Fund’s assets and also

provides certain fund accounting, sub-administrative and compliance

services to the Fund on behalf of the Investment Manager. UMB Bank,

n.a. serves as a custodian of the Fund for the purpose of processing

October 31, 2025 (as supplemented January 6, 2026) |

  

The Fund’s Common Shares are not listed for trading on any securities

exchange. There is currently no secondary market for its Common Shares

and the Fund does not expect any secondary market to develop for its

Common Shares. Common Shareholders of the Fund are not able to

have their Common Shares redeemed or otherwise sell their Common

Shares on a daily basis because the Fund is an unlisted closed-end fund.

In order to provide liquidity to Common Shareholders, the Fund is

structured as an “interval fund” and conducts quarterly repurchase

offers for a portion of its outstanding Common Shares, as described

herein. Investors should consider Common Shares of the Fund to be an

illiquid investment. An investment in the Fund is suitable only for

long-term investors who can bear the risks associated with the limited

liquidity of the Common Shares. Investors should consider their

investment goals, time horizons and risk tolerance before investing in

the Fund.

An investment in the Fund involves a considerable amount of risk. It is

possible that you will lose money. An investment in the Fund is suitable

only for investors who can bear the risks associated with the limited

liquidity of the Common Shares and should be viewed as a long-term

investment. Before making your investment decision, you should (i)

consider the suitability of this investment with respect to your

investment objectives and personal financial situation and (ii) consider

factors such as your personal net worth, income, age, risk tolerance and

liquidity needs. An investment in the Fund should not be viewed as a

complete investment program.

The Fund is a non-diversified, closed-end management investment

company with limited history of operations and is designed for

long-term investors and not as a trading vehicle.

A new or smaller fund’s performance may not represent how the fund is

expected to or may perform in the long term if and when it becomes

larger and has fully implemented its investment strategies. Investment

positions may have a disproportionate impact (negative or positive) on

performance in a new and smaller fund, such as the Fund. New and

smaller funds may also require a period of time before they are invested

in securities that meet their investment objectives and policies and

achieve a representative portfolio composition. Fund performance may

be lower or higher during this “ramp-up” period, and may also be more

volatile, than would be the case after the fund is fully invested. Similarly,

Foreign (non-U.S.) investment risk may be particularly high to the extent

that the Fund invests in securities of issuers based in or doing business

in emerging market countries or invests in securities denominated in the

currencies of emerging market countries. Investing in securities of

issuers based in or doing business in emerging markets entails all of the

risks of investing in foreign securities noted below, but to a heightened

degree.

Investments in emerging market countries pose a greater degree of

systemic risk (i.e., the risk of a cascading collapse of multiple institutions

within a country, and even multiple national economies). The

inter-relatedness of economic and financial institutions within and

among emerging market economies has deepened over the years, with

the effect that institutional failures and/or economic difficulties that are

of initially limited scope may spread throughout a country, a region or

all or most emerging market countries. This may undermine any attempt

by the Fund to reduce risk through geographic diversification of its

portfolio.

There is a heightened possibility of imposition of withholding or other

taxes on interest or dividend income or capital gains generated from

emerging market securities. Governments of emerging market countries

may engage in confiscatory taxation or expropriation of income and/or

assets to raise revenues or to pursue a domestic political agenda. In the

past, emerging market countries have nationalized assets, companies

and even entire sectors, including the assets of foreign investors, with

inadequate or no compensation to the prior owners. There can be no

assurance that the Fund will not suffer a loss of any or all of its

investments, or interest or dividends thereon, due to adverse fiscal or

other policy changes in emerging market countries.

There is also a greater risk that an emerging market government may

take action that impedes or prevents the Fund from taking income

and/or capital gains earned in the local currency and converting into

U.S. dollars (i.e., “repatriating” local currency investments or profits).

Certain emerging market countries have sought to maintain foreign

exchange reserves and/or address the economic volatility and

dislocations caused by the large international capital flows by

controlling or restricting the conversion of the local currency into other

currencies. This risk tends to become more acute when economic

conditions otherwise worsen. There can be no assurance that if the Fund

earns income or capital gains in an emerging market currency or PIMCO

| Interval Funds

Bankruptcy law and creditor reorganization processes may differ

substantially from those in the United States, resulting in greater

uncertainty as to the rights of creditors, the enforceability of such rights,

reorganization timing and the classification, seniority and treatment of

claims. In certain emerging market countries, although bankruptcy laws

have been enacted, the process for reorganization remains highly

uncertain. In addition, it may be impossible to seek legal redress against

an issuer that is a sovereign state.

Emerging market countries typically have less established regulatory,

disclosure, legal, accounting, recordkeeping and financial reporting

systems than those in more developed markets, which may increase the

potential for market manipulation or reduce the scope or quality of

financial information available to investors. Governments in emerging

market countries are often less stable and more likely to take extra-legal

action with respect to companies, industries, assets, or foreign

ownership than those in more developed markets. Moreover, it can be

more difficult for investors to bring litigation or enforce judgments

against issuers in emerging markets or for U.S. regulators to bring

enforcement actions, or obtain information needed to pursue or enforce

such judgments, against such issuers. In addition, foreign companies

with securities listed on U.S. exchanges may be delisted if they do not

meet U.S. accounting standards and auditor oversight requirements,

which may decrease the liquidity and value of the securities. The Fund

may also be subject to emerging markets risk if it invests in derivatives

or other securities or instruments whose value or return are related to

the value or returns of emerging markets securities.

Other heightened risks associated with emerging markets investments

include without limitation (i) risks due to less social, political and

economic stability; (ii) the smaller size of the market for such securities

and a lower volume of trading, resulting in a lack of liquidity and in

price volatility; (iii) certain national policies which may restrict the Fund’s

investment opportunities, including sanctions and restrictions on

investing in issuers or industries deemed sensitive to relevant national

interests and requirements that government approval be obtained prior

to investment by foreign persons; (iv) certain national policies that may

restrict the Fund’s repatriation of investment income, capital or the

proceeds of sales of securities, including temporary restrictions on

foreign capital remittances; (v) the lack of uniform accounting and

auditing standards and/or standards that may be significantly different

from the standards required in the United States; (vi) less publicly

available financial and other information regarding issuers; (vii)

potential difficulties in enforcing contractual obligations; and (viii)

higher rates of inflation, higher interest rates and other economic

concerns. Countries with emerging securities markets may additionally

experience problems with share registration, settlement and custody,

which may result in losses to the Fund. The Fund may invest to a

substantial extent in emerging market securities that are denominated

in local currencies, subjecting the Fund to a greater degree of foreign

currency risk. Also, investing in emerging market countries may entail

The currencies of emerging market countries may experience significant

declines against the U.S. dollar, and devaluation may occur subsequent

to investments in these currencies by the Fund. Many emerging market

countries have experienced substantial, and in some periods extremely

high, rates of inflation for many years. Inflation and rapid fluctuations in

inflation rates have had, and may continue to have, negative effects on

the economies and securities markets of certain emerging market

countries.

Emerging securities markets may have different clearance and

settlement procedures, which may be unable to keep pace with the

volume of securities transactions or otherwise make it difficult to

engage in such transactions. Settlement problems may cause the Fund

to miss attractive investment opportunities, hold a portion of the assets

in cash pending investment, or be delayed in disposing of a portfolio

security. Such a delay could result in possible liability to a purchaser of

the security. Custody services in many emerging market countries

remain undeveloped. The Fund will be investing in emerging market

countries where the current law and market practice carry fewer

safeguards than in more developed markets, including the protection of

client securities against claims from general creditors in the event of the

insolvency of an agent selected to hold securities on behalf of the Fund,

and the Fund’s custodian and the Investment Manager have assumed

no liability for losses resulting from the Fund acting in accordance with

such practice.

For the avoidance of doubt, the emerging markets in which the Fund

may invest include frontier markets. Frontier market countries are

emerging market countries, but generally have smaller economies or

less mature capital markets than more developed emerging markets,

and, as a result, the risks of investing in emerging market countries are

magnified in frontier countries. The markets of frontier countries typically

have low trading volumes and the potential for extreme price volatility

and illiquidity. This volatility may be further heightened by the actions of

a few major investors. For example, a substantial increase or decrease in

cash flows of funds investing in these markets could significantly affect

local stock prices and, therefore, the net asset value of Fund shares.

These factors make investing in frontier countries significantly riskier

than in other countries, including other emerging market countries.

Foreign (non-U.S.) securities may experience more rapid and extreme

changes in value than securities of U.S. issuers or securities that trade

exclusively in U.S. markets. The securities markets of many foreign

countries are relatively small, with a limited number of companies

representing a small number of industries. Additionally, issuers of

foreign (non-U.S.) securities are usually not subject to the same degree

October 31, 2025 (as supplemented January 6, 2026) |

  

Also, nationalization, expropriation or confiscatory taxation, unstable

governments, decreased market liquidity, currency blockage, market

disruptions, political changes, security suspensions or diplomatic

developments, trade restrictions (including tariffs) or the imposition of

sanctions or other similar measures could adversely affect the Fund’s

investments in a foreign (non-U.S.) country and may render holdings in

that foreign (non-U.S.) country illiquid or even worthless. In the event of

nationalization, expropriation or other confiscation, the Fund could lose

its entire investment in foreign (non-U.S.) securities. The type and

severity of sanctions and other similar measures, including counter

sanctions and other retaliatory actions, that may be imposed could vary

broadly in scope, and their impact is difficult to ascertain. These types of

measures may include, but are not limited to, banning a sanctioned

country or certain persons or entities associated with such country from

global payment systems that facilitate cross-border payments, restricting

securities transactions, restricting dealings with entities that are critical

to the infrastructure of securities and related transactions in specific

jurisdictions, restricting transactions in specified sectors of certain

countries, and freezing the assets of particular countries, entities or

persons. The imposition of sanctions and other similar measures could,

among other things, result in a decline in the value and/or liquidity of

affected securities, downgrades in the credit ratings of affected or

related securities, currency devaluation or volatility, and increased

market volatility and disruption in the securities or sanctioned country

and throughout the world. Sanctions and other similar measures could

directly or indirectly limit or prevent the Fund from buying and selling

securities, receiving interest or principal payments due on the securities,

significantly delay or prevent securities transactions, and adversely

impact the Fund's liquidity and performance and/or prevent the

 

The Fund may invest in securities and

instruments that are economically tied to the People's Republic of China

(excluding Hong Kong, Macau and Taiwan for the purpose of this

disclosure) (“PRC”). In determining whether an instrument is

economically tied to the PRC, PIMCO uses the criteria for determining

whether an instrument is economically tied to an emerging market

country as set forth above. Investing in securities and instruments

economically tied to the PRC subjects the Fund to certain of the risks of

investing in foreign (non-U.S.) securities and emerging market securities,

as well as additional risks specific to China. These additional risks

include (without limitation): (a) inefficiencies resulting from erratic

growth; (b) the unavailability of consistently-reliable economic data or

financial data; (c) potentially high rates of inflation; (d) dependence on

exports and international trade, including the risk of increased trade

tariffs, outbound investment measures, sanctions and embargoes; (e)

relatively high levels of asset price volatility; (f) potential shortage of

liquidity and limited accessibility by foreign (non-U.S.) investors

(including as a result of sanctions); (g) greater competition from

regional economies and territorial and other disputes with other

countries; (h) fluctuations in currency exchange rates or currency

devaluation by the PRC government or central bank, particularly in light

of the relative lack of currency hedging instruments and controls on the

ability to exchange local currency for U.S. dollars; (i) the relatively small

size and absence of operating history of many PRC companies; (j) the

developing nature of the legal and regulatory framework for securities

markets, custody arrangements and commerce; (k) uncertainty and

potential changes with respect to the rules and regulations of the

qualified foreign institutional investors (“QFII”) program and other

market access programs through which such investments are made; (l)

the commitment of the PRC government to continue with its economic

reforms; (m) PRC regulators may suspend trading in PRC issuers (or

permit such issuers to suspend trading) during market disruptions, and

that such suspensions may be widespread and increase the risk of

market manipulation; (n) different regulatory and audit requirements

related to the quality of financial statements of Chinese issuers; (o)

limitations on the ability to inspect the quality of audits performed in

the PRC, particularly the Public Company Accounting Oversight Board’s

| Interval Funds

In recent years, certain governmental bodies (including the

U.S. government) have considered and, in some cases, imposed

sanctions, trade and investment restrictions and notification

requirements on the PRC (as well as Hong Kong and Macau), and it is

possible that additional restrictions may be imposed or retaliatory action

may be taken in the future. In addition, the U.S. government has

implemented the Outbound Investment Security Program. This program

currently focuses on investments in certain national security sectors

(e.g., semiconductors, artificial intelligence, and quantum information

technology), and it may expand to cover additional sectors over time.

Complying with such restrictions may prevent a Fund from pursuing

certain investments, cause delays or other impediments with respect to

consummating such investments, require notification of such

investments to government authorities, require divestment or freezing of

investments on unfavorable terms, render divestment of

underperforming investments impracticable, negatively impact a Fund’s

ability to achieve its investment objective, prevent the Fund from

receiving payments otherwise due it, require a Fund to obtain

information about underlying investors, increase diligence and other

similar costs to the Fund, render valuation of China-related investments

challenging, or require a Fund to consummate an investment on terms

that are less advantageous than would be the case absent such

restrictions. Any of these outcomes could adversely affect the Fund’s

performance with respect to such investments, and thus a Fund’s

performance as a whole.

Given the complex and evolving relationship between the PRC and

certain other countries, it is difficult to predict the impact of such

restrictions on market conditions. Foreign (non-U.S.) relations, such as

the PRC-U.S. relationship regarding trade, currency exchange,

intellectual property protection, among other things, could also have

implications with respect to capital flow and business operations. For

example, U.S. social, political, regulatory and economic conditions

prompting changes in laws and policies governing foreign (non-U.S.)

trade, manufacturing, developments and investments in the PRC could

limit the Fund’s ability to access certain opportunities in PRC or restrict

transaction with certain PRC issuers and, as a result, could adversely

affect the performance of the Fund’s investments.

 

The Fund may invest in securities and

instruments that are economically tied to Russia. Investments in Russia

are subject to various risks such as, but not limited to political,

economic, legal, market and currency risks. The risks include uncertain

political and economic policies, short -term market volatility, poor

accounting standards, corruption and crime, an inadequate regulatory

system, regional armed conflict and unpredictable taxation. Investments

in Russia are particularly subject to the risk that further economic

The Russian securities market, as compared to U.S. markets, has

significant price volatility, less liquidity, a smaller market capitalization

and a smaller number of traded securities. There may be little publicly

available information about issuers. Settlement, clearing and

registration of securities transactions are subject to risks. Prior to the

implementation of the National Settlement Depository (“NSD”), a

October 31, 2025 (as supplemented January 6, 2026) |

  

The Fund may have substantial exposure to emerging market sovereign

debt, including quasi-sovereign debt. Sovereign debt includes securities

issued or guaranteed by foreign sovereign governments or their

agencies, authorities, political subdivisions or instrumentalities.

Quasi-sovereign obligations typically are issued by companies or

agencies that may receive financial support or backing from a sovereign

In addition to the other risks applicable to debt investments, sovereign

debt may decline in value as a result of default or other adverse credit

event resulting from an issuer’s inability or unwillingness to make

principal or interest payments in a timely fashion. A sovereign entity’s

failure to make timely payments on its debt can result from many

factors, including, without limitation, insufficient foreign (non-U.S.)

currency reserves or an inability to sufficiently manage fluctuations in

relative currency valuations, an inability or unwillingness to satisfy the

demands of creditors and/or relevant supranational entities regarding

debt service or economic reforms, the size of the debt burden relative to

economic output and tax revenues, cash flow difficulties and other

political and social considerations. The risk of loss to the Fund in the

event of a sovereign debt default or other adverse credit event is

heightened by the unlikelihood of any formal recourse or means to

enforce its rights as a holder of the sovereign debt. In addition,

sovereign debt restructurings, which may be shaped by entities and

factors beyond the Fund’s control, may result in a loss in value of the

Fund’s sovereign debt holdings.

Currency risk may be particularly high because the Fund may, at times

or in general, have substantial exposure to emerging market currencies,

and engage in foreign currency transactions that are economically tied

to emerging market countries. These currency transactions may present

market, credit, currency, liquidity, legal, political, headline, reputational

and other risks different from, or greater than, the risks of investing in

developed foreign (non-U.S.) currencies or engaging in foreign currency

transactions that are economically tied to developed foreign countries.

Investments denominated in foreign (non-U.S.) currencies or that trade

in and receive revenues in, foreign (non-U.S.) currencies, derivatives or

other instruments that provide exposure to foreign (non-U.S.)

currencies, are subject to the risk that those currencies will decline in

value relative to the U.S. dollar, or, in the case of hedging positions, that

the U.S. dollar will decline in value relative to the currency being

hedged.

Currency rates in foreign (non-U.S.) countries may fluctuate significantly

over short periods of time for a number of reasons, including changes in

interest or inflation rates, balance of payments and governmental

surpluses or deficits, intervention (or the failure to intervene) by U.S. or

foreign (non-U.S.) governments, central banks or supranational entities

such as the International Monetary Fund, the imposition of currency

controls or other political developments in the United States or abroad.

These fluctuations may have a significant adverse impact on the value of

the Fund’s portfolio and/or the level of Fund distributions made to

Common Shareholders. There is no assurance that a hedging strategy, if

used, will be successful.

| Interval Funds

The local emerging market currencies in which the Fund may be

invested from time to time may experience substantially greater

volatility against the U.S. dollar than the major convertible currencies of

developed countries. Some of the local currencies in which the Fund

may invest are neither freely convertible into one of the major currencies

nor internationally traded. The local currencies may be convertible into

other currencies only inside the relevant emerging market where the

limited availability of such other currencies may tend to inflate their

values relative to the local currency in question. Such internal exchange

markets can therefore be said to be neither liquid nor competitive. In

addition, many of the currencies of emerging market countries in which

the Fund may invest have experienced steady devaluation relative to

freely convertible currencies.

Continuing uncertainty as to the status of the euro and the European

Monetary Union (“EMU”) has created significant volatility in currency

and financial markets generally. Any partial or complete dissolution of

the EMU could have significant adverse effects on currency and financial

markets, and on the values of the Fund’s portfolio investments. If one or

more EMU countries were to stop using the euro as its primary currency,

the Fund’s investments in such countries may be redenominated into a

different or newly adopted currency. As a result, the value of those

investments could decline significantly and unpredictably. In addition,

securities or other investments that are redenominated may be subject

to foreign currency risk, liquidity risk and valuation risk to a greater

extent than similar investments currently denominated in euros. To the

extent a currency used for redenomination purposes is not specified in

respect of certain EMU-related investments, or should the euro cease to

be used entirely, the currency in which such investments are

denominated may be unclear, making such investments particularly

difficult to value or dispose of. The Fund may incur additional expenses

to the extent it is required to seek judicial or other clarification of the

denomination or value of such securities.

There can be no assurance that if the Fund earns income or capital gains

in a non-U.S. country or PIMCO otherwise seeks to withdraw the Fund’s

investments from a given country, capital controls imposed by such

country will not prevent, or cause significant expense in, doing so.

The market price of securities owned by the Fund may fluctuate,

sometimes rapidly or unpredictably. Securities may decline in value due

to factors affecting (or perceiving to affect) securities markets generally

or particular industries or companies represented in the securities

markets. The value of a security may decline due to general market

conditions that are not specifically related to a particular company, such

as real or perceived adverse economic conditions, changes in the

general outlook for corporate earnings, levels of public debt and deficits,

changes in inflation, interest or currency rates, financial system

In addition, market risk includes the risk that geopolitical and other

events will disrupt the economy on a national or global level. For

instance, actual or threatened war, terrorism, social unrest, recessions,

supply chain disruptions, market manipulation, government defaults,

government shutdowns, political and regulatory changes, diplomatic

developments or the imposition of sanctions and other similar

measures, including the imposition of tariffs, or other U.S. economic

policies and any related public health emergencies (such as the spread

of infectious diseases, pandemics and epidemics), natural/environmental

disasters or events, climate-change and climate related events can all

negatively impact the securities markets, which could cause the Fund to

lose value. These events could reduce consumer demand or economic

output, result in market closures, changes in interest rates,

inflation/deflation, travel restrictions or quarantines, and significantly

adversely impact the economy.

As computing technology and data analytics continually advance there

has been an increasing trend towards machine driven and artificially

intelligent trading systems, particularly providing such systems with

increasing levels of autonomy in trading decisions. Regulators of

financial markets have become increasingly focused on the potential

impact of artificial intelligence on investment activities and may issue

regulations that are intended to affect the use of artificial technology in

trading activities. Any such regulations may not have the intended affect

on financial markets. Moreover, advancements in artificial intelligence

and other technologies may suffer from the introduction of errors,

defects or security vulnerabilities which can go undetected. The

potential speed of such trading and technologies may exacerbate the

impact of any such flaws, particularly where such flaws are exploited by

other artificially intelligent systems and may act to impair or prevent the

intervention of a human control.

The current contentious domestic political environment, as well as

political and diplomatic events within the United States and abroad,

such as the U.S. budget and deficit reduction plan and foreign policy

tensions with foreign nations, including embargoes, tariffs, sanctions,

trade wars, and other similar developments, has in the past resulted,

and may in the future result, in a government shutdown or otherwise

adversely affect the U.S. regulatory landscape, the general market

environment and/or investor sentiment, which could have an adverse

October 31, 2025 (as supplemented January 6, 2026) |

  

During inflationary price movements, fixed income securities markets

may experience heightened levels of interest rate, volatility and liquidity

risk. Interest rate increases in the future could cause the value of a fund

that invests in fixed income securities to decrease.

Interest rate increases and other market events have the potential to

adversely impact real estate values and real estate-related assets, which

could, by extension, adversely impact the value of other investments

(such as loans, securitized debt and other fixed income securities). Such

an impact could materialize in one real estate sector and not another, or

in a different manner in different real estate sectors. Examples of the

current risks faced by real estate-related assets include: tenant vacancy

rates, increased tenant turnover and tenant concentration; general real

estate headwinds, including delinquencies and difficulties in collecting

rents and other payments (which increases the risk of owners being

unable to pay or otherwise defaulting on their own borrowings and

obligations); decreases in property values; increases in inflation, upkeep

costs and other expenses; fluctuations in rents; and increased

concentration in ownership of certain types of properties.

Exchanges and securities markets may close early, close late or issue

trading halts on specific securities, which may result in, among other

things, the Fund being unable to buy or sell certain securities or financial

instruments at an advantageous time or accurately price its portfolio

investments.

The Fund’s investment performance depends upon how its assets are

allocated and reallocated. A principal risk of investing in the Fund is that

PIMCO may make less than optimal or poor asset allocation decisions,

which could result in the Fund being underweight or overweight in

sectors, asset classes, or geographies that perform differently than

expected. PIMCO employs an active approach to allocation among

multiple fixed income sectors, but there is no guarantee that such

The value of a security may decline for a number of reasons that directly

relate to the issuer, such as management performance, major litigation,

investigations or other controversies, changes in the issuer’s financial

condition or credit rating, changes in government regulations affecting

the issuer or its competitive environment and strategic initiatives such

as mergers, acquisitions or dispositions and the market response to any

such initiatives, financial leverage, reputation or reduced demand for the

issuer’s goods or services, as well as the historical and prospective

earnings of the issuer and the value of its assets. A change in the

financial condition of a single issuer may affect one or more other

issuers or securities markets as a whole. These risks can apply to the

Common Shares issued by the Fund and to the issuers of securities and

other instruments in which the Fund invests.

As described under “Periodic Repurchase Offers” above, the Fund is an

“interval fund” and, in order to provide liquidity to shareholders, the

Fund, subject to applicable law,conducts quarterly repurchase offers of

the Fund’s outstanding Common Shares at NAV, subject to approval of

the Board. In all cases, repurchase offers will be for at least 5% and not

more than 25% of its outstanding Common Shares at NAV, pursuant to

Rule 23c-3 under the 1940 Act. The Fund currently expects to conduct

quarterly repurchase offers for 5% of its outstanding Common Shares

under ordinary circumstances. The Fund believes that these repurchase

offers are generally beneficial to the Fund’s shareholders and

repurchases generally will be funded from available cash or sales of

portfolio securities. However, repurchase offers and the need to fund

repurchase obligations may affect the ability of the Fund to be fully

invested or force the Fund to maintain a higher percentage of its assets

in liquid investments, which may harm the Fund’s investment

performance. Moreover, diminution in the size of the Fund through

repurchases may result in untimely sales of portfolio securities (with

associated imputed transaction costs, which may be significant), and

may limit the ability of the Fund to participate in new investment

opportunities or to achieve its investment objective. The Fund may

accumulate cash by holding back (i.e., not reinvesting) payments

received in connection with the Fund’s investments. The Fund believes

that payments received in connection with the Fund’s investments will

generate sufficient cash to meet the maximum potential amount of the

Fund’s repurchase obligations. If at any time cash and other liquid

assets held by the Fund are not sufficient to meet the Fund’s repurchase

obligations, the Fund intends, if necessary, to sell investments.To the

extent the Fund employs investment leverage, repurchases of Common

Shares would compound the adverse effects of leverage in a declining

market. In addition, if the Fund borrows to finance repurchases, interest

on that borrowing will negatively affect Common Shareholders who do

not tender their Common Shares by increasing the Fund’s expenses and

| Interval Funds

To the extent a large proportion of the Common Shares are held by a

small number of shareholders (or a single shareholder), including

affiliates of the Investment Manager, the Fund may be adversely

impacted if such shareholders purchase or request repurchases of large

amounts of Common Shares. For example, it is possible that in response

to a repurchase offer, the total amount of Common Shares tendered by

a small number of shareholders (or a single shareholder) may exceed

the number of Common Shares that the Fund has offered to repurchase.

If a repurchase offer is oversubscribed, the Fund will repurchase only a

pro rata portion of the Common Shares tendered by each shareholder.

In addition, substantial repurchases of Common Shares could result in a

decrease in the Fund's net assets, resulting in an increase in the Fund's

total annual operating expense ratio. See “Repurchase Offers Risk”

above for additional information about certain risks related to

Repurchase Offers.

The Fund is subject to management risk because it is an actively

managed investment portfolio. PIMCO and each individual portfolio

manager will apply investment techniques and risk analysis in making

investment decisions for the Fund. PIMCO and each portfolio manager

may determine that certain factors are more significant than others, but

there can be no guarantee that these decisions will produce the desired

results or that the due diligence conducted by PIMCO or such other

In addition, the Fund may rely on various third-party sources to calculate

its NAV. As a result, the Fund is subject to certain operational risks

associated with reliance on service providers and service providers’ data

sources. In particular, errors or systems failures and other technological

issues may adversely impact the Fund’s calculations of its NAV, and such

NAV calculation issues may result in inaccurately calculated NAVs,

delays in NAV calculation and/or the inability to calculate NAVs over

extended periods. The Fund may be unable to recover any losses

associated with such failures.

Interest rate risk is the risk that fixed income securities and other

instruments in the Fund’s portfolio will fluctuate in value because of

changes, or the anticipation of changes, in interest rates. Factors

including central bank monetary policy, rising inflation rates, and

changes in general economic conditions may cause interest rates to rise,

which could cause the value of the Fund’s investments to decline. For

example, as nominal interest rates rise, the value of certain securities

held by the Fund is likely to decrease. Interest rate changes can be

sudden and unpredictable, and the Fund may experience losses as a

October 31, 2025 (as supplemented January 6, 2026) |

  

Further, fixed income securities with longer durations tend to be more

sensitive to changes in interest rates, usually making them more volatile.

Duration is a measure used to determine the sensitivity of a security's

price to changes in interest rates that incorporates a security's yield,

coupon, final maturity and call features, among other characteristics.

Duration is useful primarily as a measure of the sensitivity of a fixed

income security's market price to interest rate (i.e., yield) movements. All

other things remaining equal, for each one percentage point increase in

interest rates, the value of a portfolio of fixed income investments would

generally be expected to decline by one percent for every year of the

portfolio's average duration above zero. For example, the value of a

portfolio of fixed income securities with an average duration of eight

years would generally be expected to decline by approximately 8% if

interest rates rose by one percentage point.

Dividend-paying equity securities, particularly those whose market price

is closely related to their yield, may be more sensitive to changes in

interest rates. During periods of rising interest rates, the values of such

securities may decline and may result in losses to the Fund. Variable and

floating rate securities may decline in value if their interest rates do not

rise as much, or as quickly, as interest rates in general. Conversely,

floating rate securities will not generally increase in value if interest

rates decline. Inverse floating rate securities may decrease in value if

interest rates increase. Inverse floating rate securities may also exhibit

greater price volatility than a fixed rate obligation with similar credit

quality. When the Fund holds variable or floating rate securities, a

decrease (or, in the case of inverse floating rate securities, an increase)

in market interest rates will adversely affect the income received from

such securities and the NAV of the Fund's shares.

A wide variety of factors can cause interest rates or yields of

U.S. Treasury securities (or yields of other types of bonds) to rise,

including but not limited to central bank monetary policies, changing

inflation or real growth rates, general economic conditions, increasing

bond issuances or reduced market demand for low yielding investments.

In addition, changes in monetary policy may exacerbate the risks

associated with changing interest rates. Further, in market environments

where interest rates are rising, issuers may be less willing or able to

make principal and interest payments on fixed-income investments

when due. Actions by governments and central banking authorities can

result in increases or decreases in interest rates. Periods of higher

inflation could cause such authorities to raise interest rates, which may

adversely affect the Fund and its investments.

During periods of very low or negative interest rates, the Fund may be

unable to maintain positive returns. Very low or negative interest rates

may magnify interest rate risk. Changing interest rates, including rates

that fall below zero, may have unpredictable effects on markets, may

result in heightened market volatility and may detract from Fund

performance to the extent the Fund is exposed to such interest rates.

Convexity is an additional measure used to understand a security's or

Fund's interest rate sensitivity. Convexity measures the rate of change of

duration in response to changes in interest rates. With respect to a

security's price, a larger convexity (positive or negative) may imply more

dramatic price changes in response to changing interest rates. Convexity

may be positive or negative. Negative convexity implies that interest

rate increases result in increased duration, and vice versa, meaning

increased sensitivity in prices in response to changes in interest rates.

Thus, securities with negative convexity, which may include bonds with

traditional call features and certain mortgage-backed securities, may

experience greater losses in periods of rising interest rates. Accordingly,

if the Fund holds such securities, the Fund may be subject to a greater

risk of losses in periods of rising interest rates.

The Fund could experience losses if the issuer or guarantor of a fixed

income security (including a security purchased with securities lending

collateral), or the counterparty to a derivatives contract, or the issuer or

guarantor of collateral, repurchase agreement or a loan of portfolio

securities is unable or unwilling, or is perceived (whether by market

participants, rating agencies, pricing services or otherwise) as unable or

unwilling, to make timely principal and/or interest payments or to

otherwise honor its obligations. The risk that such issuer, guarantor or

counterparty is less willing or able to do so is heightened in market

environments where interest rates are changing, notably when rates are

rising. The downgrade of the credit rating of a security or of the issuer of

a security held by the Fund may decrease its value. Measures such as

average credit quality may not accurately reflect the true credit risk of

the Fund. This is especially the case if the Fund consists of securities

with widely varying credit ratings. Securities are subject to varying

degrees of credit risk, which are often reflected in credit ratings. Credit

risk is greater to the extent the Fund uses leverage or derivatives in

connection with the management of the Fund, which would be

magnified in the event that initial or variation margin is not provided by

the counterparty to such transaction (or not provided below a certain

threshold amount). Rising or high interest rates may deteriorate the

credit quality of an issuer or counterparty, particularly if an issuer or

counterparty faces challenges rolling or refinancing its obligations. The

Fund’s investments may be adversely affected if any of the issuers it is

invested in are subject to an actual or perceived (whether by market

participants, rating agencies, pricing services or otherwise) deterioration

to their credit quality.

Credit risk includes credit spread risk, which is the risk that credit

spreads (i.e., the difference in yield between securities that is due to

differences in their actual or perceived credit quality) may increase when

| Interval Funds

The market value of corporate debt securities generally may be expected

to rise and fall inversely with interest rates. The value of intermediate

and longer-term corporate debt securities normally fluctuates more in

response to changes in interest rates than does the value of

shorter-term corporate debt securities. The market value of a corporate

debt security also may be affected by factors directly relating to the

issuer, such as investors’ perceptions of the creditworthiness of the

issuer, the issuer’s financial performance, perceptions of the issuer in the

marketplace, performance of management of the issuer, the issuer’s

capital structure and use of financial leverage and demand for the

issuer’s goods and services. Certain risks associated with investments in

corporate debt securities are described elsewhere in this prospectus in

further detail. There is a risk that the issuers of corporate debt securities

may not be able to meet their obligations on interest or principal

payments at the time called for by an instrument. The Fund may invest

in below investment grade corporate bonds, often referred to as “high

yield” securities or “junk bonds.” High yield corporate bonds are often

high risk and have speculative characteristics. High yield corporate

bonds may be particularly susceptible to adverse issuer-specific

developments. High yield corporate bonds are subject to the risks

described under “Principal Risks of the Fund—High Yield Securities

Risk.” In addition, certain corporate debt securities may be highly

customized and as a result may be subject to, among others, liquidity

and valuation/pricing transparency risks.

The mortgage-related assets in which the Fund may invest include, but

are not limited to, any security, instrument or other asset that is related

to U.S. or non-U.S. mortgages, including those issued by private

originators or issuers, or issued or guaranteed as to principal or interest

by the U.S. government or its agencies or instrumentalities or by

non-U.S. governments or authorities, such as, without limitation, assets

representing interests in, collateralized or backed by, or whose values

are determined in whole or in part by reference to any number of

mortgages or pools of mortgages or the payment experience of such

mortgages or pools of mortgages, including real estate mortgage

investment conduits (“REMICs”), which could include resecuritizations

of REMICs (“Re-REMICs”), mortgage pass-through securities, inverse

The Fund may also invest in other types of asset-backed securities,

including CDOs, CBOs and CLOs and other similarly structured

securities. See “The Fund’s Investment Objective and Strategies-Portfolio

Contents and Other Information-Mortgage-Related and Other

Asset-Backed Instruments” in this prospectus and “Investment

Objective and Policies-Mortgage-Related and Other Asset-Backed

Instruments” in the Statement of Additional Information for a

description of the various mortgage-related and other asset-backed

instruments in which the Fund may invest and their related risks.

Mortgage-related and other asset-backed instruments represent

interests in “pools” of mortgages or other assets such as consumer

loans or receivables held in trust and often involve risks that are

different from or possibly more acute than risks associated with other

types of debt instruments.

Generally, rising interest rates tend to extend the duration of fixed rate

mortgage-related assets, making them more sensitive to changes in

interest rates. Compared to other fixed income investments with similar

maturity and credit, mortgage-related securities may increase in value to

a lesser extent when interest rates decline and may decline in value to a

similar or greater extent when interest rates rise. As a result, in a period

of rising interest rates, the Fund may exhibit additional volatility since

individual mortgage holders are less likely to exercise prepayment

options, thereby putting additional downward pressure on the value of

these securities and potentially causing the Fund to experience losses.

This is known as extension risk. Mortgage-backed securities can be

highly sensitive to rising interest rates, such that even small movements

can cause the Fund to lose value. Mortgage-backed securities, and in

particular those not backed by a government guarantee, are subject to

credit risk. When interest rates decline, borrowers may pay off their

mortgages sooner than expected. This can reduce the returns of the

Fund because the Fund may have to reinvest that money at the lower

prevailing interest rates. In addition, the creditworthiness, servicing

practices, and financial viability of the servicers of the underlying

mortgage pools present significant risks. For instance, a servicer may be

required to make advances in respect of delinquent loans underlying the

mortgage-related securities; however, servicers experiencing financial

difficulties may not be able to perform these obligations. Additionally,

both mortgage-related securities and asset-backed securities are subject

to risks associated with fraud or negligence by, or defalcation of, their

servicers. These securities are also subject to the risks of the underlying

loans. In some circumstances, a servicer’s or originator’s mishandling of

documentation related to the underlying collateral (e.g., failure to

properly document a security interest in the underlying collateral) may

October 31, 2025 (as supplemented January 6, 2026) |

  

Subordinate mortgage-backed or asset-backed instruments are paid

interest only to the extent that there are funds available to make

payments. To the extent the collateral pool includes a large percentage

of delinquent loans, there is a risk that interest payments on

subordinate mortgage-backed or asset-backed instruments will not be

fully paid.

There are multiple tranches of mortgage-backed and asset-backed

instruments, offering investors various maturity and credit risk

characteristics. For example, tranches may be categorized as senior,

mezzanine, and subordinated/equity or “first loss.” The most senior

tranche of a mortgage-backed or asset-backed instrument generally has

the greatest collateralization and generally pays the lowest interest rate.

If there are defaults or the collateral otherwise underperforms,

scheduled payments to senior tranches generally take precedence over

those of mezzanine tranches, and scheduled payments to mezzanine

tranches take precedence over those to subordinated/equity tranches.

Lower tranches represent lower degrees of credit quality and pay higher

interest rates intended to compensate for the attendant risks. The return

on the lower tranches is especially sensitive to the rate of defaults in the

collateral pool. The lowest tranche (i.e., the “equity” or “residual”

tranche) generally specifically receives the residual interest payments

(i.e., money that is left over after the higher tranches have been paid

and expenses of the issuing entities have been paid) rather than a fixed

interest rate. The Fund may also invest in the residual or equity tranches

of mortgage-related and other asset-backed instruments, which may be

referred to as subordinate mortgage-backed or asset-backed

instruments and interest-only mortgage-backed or asset-backed

instruments. The Fund expects that investments in subordinate

mortgage-backed and other asset-backed instruments will be subject to

risks arising from delinquencies and foreclosures, thereby exposing its

investment portfolio to potential losses. Subordinate securities of

mortgage-backed and other asset-backed instruments are also subject

to greater credit risk than those mortgage-backed or other asset-backed

instruments that are more highly rated.

The mortgage markets in the United States and in various foreign

countries have experienced extreme difficulties in the past that

adversely affected the performance and market value of certain of the

Fund’s mortgage-related investments. Delinquencies and losses on

With respect to risk retention tranches (i.e., eligible residual interests

initially held by the sponsors of commercial mortgage backed securities

(“CMBS”) and other eligible securitizations pursuant to the U.S. Risk

Retention Rules), a third-party purchaser, such as the Fund, must hold its

retained interest, unhedged, for at least five years following the closing

of the CMBS transaction, after which it is entitled to transfer its interest

in the securitization to another person that meets the requirements for a

third-party purchaser. Even after the required holding period has

expired, due to the generally illiquid nature of such investments, no

assurance can be given as to what, if any, exit strategies will ultimately

be available for any given position.

In addition, there is limited guidance on the application of the final

U.S. Risk Retention Rules to specific securitization structures. There can

be no assurance that the applicable federal agencies charged with the

implementation of the final U.S. Risk Retention Rules (e.g., the Federal

Deposit Insurance Corporation (“FDIC”), the Comptroller of the

Currency, the Federal Reserve Board, the SEC, the Department of

Housing and Urban Development, and the Federal Housing Finance

Agency) could not take positions in the future that differ from the

interpretation of such rules taken or embodied in such securitizations, or

that the final U.S. Risk Retention Rules will not change.

Furthermore, in situations where the Fund invests in risk retention

tranches of securitizations structured by third parties, the Fund may be

required to execute one or more letters or other agreements, the exact

form and nature of which will vary (each, a “Risk Retention

Agreement”) under which it will make certain undertakings designed to

ensure such securitization complies with the U.S. Risk Retention Rules.

Such Risk Retention Agreements may include a variety of

representations, warranties, covenants and other indemnities, each of

which may run to various transaction parties. If the Fund breaches any

undertakings in any Risk Retention Agreement, it will be exposed to

claims by the other parties thereto, including for any losses incurred as a

result of such breach, which could be significant and exceed the value of

the Fund’s investments. Direct investments in mortgages and other

types of collateral are subject to risks similar (and in some cases to a

greater degree) to those described above.

There are no direct or indirect government or agency guarantees of

payments in pools created by non-governmental issuers. Privately-issued

mortgage-related securities are also not subject to the same

| Interval Funds

Privately-issued mortgage-related securities are not traded on an

exchange and there may be a limited market for the securities, especially

when there is a perceived weakness in the mortgage and real estate

market sectors. Without an active trading market, mortgage-related

securities held in the Fund’s portfolio may be particularly difficult to

value because of the complexities involved in assessing the value of the

underlying mortgage loans.

Loans, and debt instruments collateralized by loans (including shares,

certificates, notes or other securities issued by a special purpose entity

(“SPE”) sponsored by an alternative lending platform (i.e., an online

lending marketplace or lender that is not a traditional banker, such as a

bank) or its affiliates (the “Sponsor”) that represent the right to receive

principal and interest payments due on pools of whole loans or fractions

of whole loans, which may (but may not) be issued by the Sponsor, held

by the SPE (“Alt Lending ABS”)), acquired by the Fund may be subprime

in quality, or may become subprime in quality. Although there is no

specific legal or market definition of “subprime,” subprime loans are

generally understood to refer to loans made to borrowers that display

poor credit histories and other characteristics that correlate with a

higher default risk. Accordingly, subprime loans, and debt instruments

secured by such loans (including Alt Lending ABS), have speculative

characteristics and are subject to heightened risks, including the risk of

nonpayment of interest or repayment of principal, and the risks

associated with investments in high yield securities. In addition, these

instruments could be subject to increased regulatory scrutiny. The Fund

is not restricted by any particular borrower credit risk criteria and/or

qualifications when acquiring loans or debt instruments collateralized

by loans.

Investing in the municipal bond market involves the risks of investing in

debt securities generally and certain other risks. The amount of public

information available about the municipal bonds in which the Fund may

invest is generally less than that for corporate equities or bonds, and the

investment performance of the Fund’s investment in municipal bonds

may therefore be more dependent on the analytical abilities of PIMCO

than its investments in taxable bonds. The secondary market for

municipal bonds, particularly below investment grade bonds in which

the Fund may invest, also tends to be less well developed or liquid than

many other securities markets, which may adversely affect the Fund’s

ability to sell municipal bonds at attractive prices or value municipal

bonds.

The ability of municipal issuers to make timely payments of interest and

principal may be diminished during general economic downturns, by

litigation, legislation or political events, or by the bankruptcy of the

issuer. Budgetary constraints of local, state, and federal governments

upon which the issuers may be relying for funding may also impact

The Fund may invest in trust certificates issued in tender option bond

programs. In these programs, a trust typically issues two classes of

certificates and uses the proceeds to purchase municipal securities

having relatively long maturities and bearing interest at a fixed interest

rate substantially higher than prevailing short-term tax-exempt rates.

There is a risk that the Fund will not be considered the owner of a

tender option bond for federal income tax purposes, and thus will not

be entitled to treat such interest as exempt from federal income tax.

Certain tender option bonds may be less liquid or may become less

liquid as a result of, among other things, a credit rating downgrade, a

payment default or a disqualification from tax-exempt status. The Fund’s

investment in the securities issued by a tender option bond trust may

involve greater risk and volatility than an investment in a fixed rate

bond, and the value of such securities may decrease significantly when

market interest rates increase. Tender option bond trusts could be

terminated due to market, credit or other events beyond the Fund’s

control, which could require the Fund to dispose of portfolio investments

at inopportune times and prices. The Fund may use a tender option

bond program as a way of achieving leverage in its portfolio, in which

case the Fund will be subject to leverage risk. The use of tender option

bonds will impact the Fund's duration and cause the Fund to be subject

to increased duration and interest rate risk.

The Fund may invest in revenue bonds, which are typically issued to

fund a wide variety of capital projects including electric, gas, water and

sewer systems; highways, bridges and tunnels; port and airport facilities;

colleges and universities; and hospitals. Because the principal security

for a revenue bond is generally the net revenues derived from a

particular facility or group of facilities or, in some cases, from the

proceeds of a special excise or other specific revenue source or annual

October 31, 2025 (as supplemented January 6, 2026) |

  

The Fund may invest in participations in lease obligations or installment

purchase contract obligations of municipal authorities or entities.

Although a municipal lease obligation does not constitute a general

obligation of the municipality for which the municipality's taxing power

is pledged, a municipal lease obligation is ordinarily backed by the

municipality's covenant to budget for, appropriate and make the

payments due under the municipal lease obligation. However, certain

municipal lease obligations contain “non-appropriation” clauses, which

provide that the municipality has no obligation to make lease or

installment purchase payments in future years unless money is

appropriated for such purpose on a yearly basis. In the case of a

“non-appropriation” lease, the Fund's ability to recover under the lease

in the event of non-appropriation or default will be limited solely to the

repossession of the leased property, without recourse to the general

credit of the lessee, and the disposition or re-leasing of the property

might prove difficult.

Municipal securities are also subject to interest rate, credit, and liquidity

risk.

 

The value of municipal securities, similar to other

fixed income securities, will likely drop as interest rates rise in the

general market. Conversely, when rates decline, bond prices generally

rise.

 

The risk that a borrower may be unable to make interest

or principal payments when they are due. Funds that invest in municipal

securities rely on the ability of the issuer to service its debt. This subjects

the Fund to credit risk in that the municipal issuer may be fiscally

unstable or exposed to large liabilities that could impair its ability to

honor its financial obligations. Municipal issuers with significant debt

service requirements, in the near-to mid-term; unrated issuers and those

with less capital and liquidity to absorb additional expenses may be

most at risk. To the extent the Fund invests in lower quality or high yield

municipal securities, it may be more sensitive to the adverse credit

events in the municipal market. The treatment of municipalities in

bankruptcy is more uncertain, and potentially more adverse to debt

holders, than for corporate issues.

 

The risk that investors may have difficulty finding a

buyer when they seek to sell, and therefore, may be forced to sell at a

discount to the market value. Liquidity may sometimes be impaired in

the municipal market and because the Fund primarily invests in

municipal securities, it may find it difficult to purchase or sell such

securities at opportune times. The municipal securities market can be

susceptible to increases in volatility and decreases in liquidity. Liquidity

can decline unpredictably in response to a variety of factors, including

overall economic conditions or credit tightening. Increases in volatility

and decreases in liquidity also may be caused by a rise in interest rates

(or the expectation of a rise in interest rates). Liquidity can be impaired

due to interest rate concerns, credit events, or general supply and

demand imbalances. Depending on the particular issuer and current

In addition to general municipal market risks, different municipal sectors

may face different risks. For instance, general obligation bonds are

secured by the full faith, credit, and taxing power of the municipality

issuing the obligation. As such, timely payment depends on the

municipality's ability to raise tax revenue and maintain a fiscally sound

budget. The timely payments may also be influenced by any unfunded

pension liabilities or other post-employee benefit plan liabilities.

Revenue bonds are secured by special tax revenues or other revenue

sources. If the specified revenues do not materialize, then the bonds

may not be repaid.

Private activity bonds are yet another type of municipal security.

Municipalities use private activity bonds to finance the development of

industrial facilities for use by private enterprise. Principal and interest

payments are to be made by the private enterprise benefiting from the

development, which means that the holder of the bond is exposed to

the risk that the private issuer may default on the bond.

Moral obligation bonds are usually issued by special purpose public

entities. If the public entity defaults, repayment becomes a “moral

obligation” instead of a legal one. The lack of a legally enforceable right

to payment in the event of default poses a special risk for a holder of

the bond because it has little or no ability to seek recourse in the event

of default.

In addition, a significant restructuring of federal income tax rates or

even serious discussion on the topic in Congress could cause municipal

bond prices to fall. The demand for municipal securities is strongly

influenced by the value of tax-exempt income to investors relative to

taxable income. Lower income tax rates potentially reduce the

advantage of owning municipal securities.

Similarly, changes to state or federal regulation tied to a specific sector,

such as the hospital sector, could have an impact on the revenue stream

for a given subset of the market.

Municipal notes are similar to general municipal debt obligations, but

they generally possess shorter terms. Municipal notes can be used to

provide interim financing and may not be repaid if anticipated revenues

are not realized.

To the extent that the Fund invests in high yield securities and unrated

securities of similar credit quality (commonly known as “high yield

securities” or “junk bonds”), the Fund may be subject to greater levels

of market risk, credit risk, call risk and liquidity risk than funds that do

not invest in such securities, which could have a negative effect on the

NAV and market price of the Fund's Common Shares or Common Share

dividends. These securities are considered predominantly speculative by

ratings agencies with respect to an issuer's continuing ability to make

principal and interest payments, and their value may be more volatile

than other types of securities. An economic downturn or individual

issuer developments could adversely affect the market for these

securities and reduce the Fund's ability to sell these securities at an

| Interval Funds

High yield securities structured as zero-coupon bonds or pay-in-kind

securities tend to be especially volatile as they are particularly sensitive

to downward pricing pressures from rising interest rates or widening

spreads and may require the Fund to make taxable distributions of

imputed income without receiving the actual cash currency. Issuers of

high yield securities may have the right to “call” or redeem the issue

prior to maturity, which may result in the Fund having to reinvest the

proceeds in other high yield securities or similar instruments that may

pay lower interest rates. The Fund may also be subject to greater levels

of liquidity risk than funds that do not invest in high yield securities.

Consequently, transactions in high yield securities may involve greater

costs than transactions in more actively traded securities. A lack of

publicly-available information, irregular trading activity and wide

bid/ask spreads among other factors, may, in certain circumstances,

make high yield debt more difficult to sell at an advantageous time or

price than other types of securities or instruments. These factors may

result in the Fund being unable to realize full value for these securities

and/or may result in the Fund not receiving the proceeds from a sale of

a high yield security for an extended period after such sale, each of

which could result in losses to the Fund. Because of the risks involved in

investing in high yield securities, an investment in the Fund should be

considered speculative.

In general, lower rated debt securities carry a greater degree of risk that

the issuer will lose its ability to make interest and principal payments,

which could have a negative effect on the Fund. Securities of below

investment grade quality are regarded as having predominantly

speculative characteristics with respect to capacity to pay interest and

repay principal and are commonly referred to as “high yield” securities

or “junk bonds.” High yield securities involve a greater risk of default

and their prices are generally more volatile and sensitive to actual or

perceived negative developments. Debt securities in the lowest

investment grade category also may be considered to possess some

speculative characteristics by certain rating agencies. The Fund may

purchase stressed or distressed securities that are in default or the

issuers of which are in bankruptcy, which involve heightened risks. An

economic downturn could severely affect the ability of issuers

(particularly those that are highly leveraged) to service or repay their

debt obligations. Lower-rated securities are generally less liquid than

higher-rated securities, which may have an adverse effect on the Fund's

ability to dispose of them. For example, under adverse market or

economic conditions, the secondary market for below investment grade

securities could contract further, independent of any specific adverse

changes in the condition of a particular issuer, and certain securities in

the Fund's portfolio may become illiquid or less liquid. As a result, the

Fund could find it more difficult to sell these securities or may be able to

sell these securities only at prices lower than if such securities were

widely traded. To the extent the Fund focuses on below investment

grade debt obligations, PIMCO's capabilities in analyzing credit quality

Investments in the securities of financially distressed issuers involve

substantial risks, including the risk of default. Distressed securities

generally trade significantly below “par” or full value because

investments in such securities and debt of distressed issuers or issuers in

default are considered speculative and involve substantial risks in

addition to the risks of investing in high-yield bonds. Such investments

may be in default at the time of investment. In addition, these securities

may fluctuate more in price, and are typically less liquid. The Fund also

will be subject to significant uncertainty as to when, and in what

manner, and for what value obligations evidenced by securities of

financially distressed issuers will eventually be satisfied. Defaulted

obligations might be repaid only after lengthy workout or bankruptcy

proceedings, during which the issuer might not make any interest or

other payments. In any such proceeding relating to a defaulted

obligation, the Fund may lose its entire investment or may be required

to accept cash or securities with a value substantially less than its

original investment. Moreover, any securities received by the Fund upon

completion of a workout or bankruptcy proceeding may be less liquid,

speculative or restricted as to resale. Similarly, if the Fund participates in

negotiations with respect to any exchange offer or plan of

reorganization with respect to the securities of a distressed issuer, the

Fund may be restricted from disposing of such securities. To the extent

that the Fund becomes involved in such proceedings, the Fund may

have a more active participation in the affairs of the issuer than that

assumed generally by an investor. The Fund may incur additional

expenses to the extent it is required to seek recovery upon a default in

the payment of principal or interest on its portfolio holdings.

Also among the risks inherent in investments in a troubled issuer is that

it frequently may be difficult to obtain information as to the true

financial condition of such issuer. PIMCO’s judgments about the credit

quality of a financially distressed issuer and the relative value of its

securities may prove to be wrong.

The Fund may be subject to greater levels of credit risk than funds that

do not invest in below investment grade senior debt. The Fund may also

be subject to greater levels of liquidity risk than funds that do not invest

October 31, 2025 (as supplemented January 6, 2026) |

  

Loan interests may take the form of (i) direct interests acquired during a

primary distribution or other purchase of a loan, (ii) loans originated by

the Fund or (iii) assignments of, novations of or participations in all or a

portion of a loan acquired in secondary markets. In addition to credit

risk and interest rate risk, the Fund's exposure to loan interests may be

subject to additional risks. For example, purchasers of loans and other

forms of direct indebtedness depend primarily upon the

creditworthiness of the borrower for payment of principal and interest.

Loans are subject to the risk that scheduled interest or principal

payments will not be made in a timely manner or at all, either of which

may adversely affect the value of the loan. If the Fund does not receive

scheduled interest or principal payments on such indebtedness, the

Fund's share price and yield could be adversely affected. Loans that are

fully secured may offer the Fund more protection than an unsecured

loan in the event of non-payment of scheduled interest or principal if

the Fund is able to access and monetize the collateral. However, the

collateral underlying a loan, if any, may be unavailable or insufficient to

satisfy a borrower's obligation. If the Fund becomes owner, whole or in

part, of any collateral after a loan is foreclosed, the Fund may incur costs

associated with owning and/or monetizing its ownership of the

collateral.

During periods of deteriorating economic conditions, such as recessions

or periods of rising unemployment, or changing interest rates (notably

increases), delinquencies and losses generally increase, sometimes

dramatically, with respect to obligations under such loans. An economic

downturn or individual corporate developments could adversely affect

the market for these instruments and reduce the Fund’s ability to sell

these instruments at an advantageous time or price. An economic

downturn could also lead to a higher non-payment rate and, a loan may

lose significant market value before a default occurs.

Investments in loans through a purchase of a loan, loan origination or a

direct assignment of a financial institution’s interests with respect to a

loan may involve additional risks to the Fund. For example, if a loan is

foreclosed, the Fund could become owner, in whole or in part, of any

collateral, which could include, among other assets, real estate or other

real or personal property, and would bear the costs and liabilities

associated with owning and holding or disposing of the collateral.

Moreover, the purchaser of an assignment typically succeeds to all the

rights and obligations under the loan agreement with the same rights

and obligations as the assigning lender. Assignments may, however, be

arranged through private negotiations between potential assignees and

potential assignors, and the rights and obligations acquired by the

The Fund may obtain exposure to loans made to private investment

vehicles, including private funds that are not registered under the 1940

Act. Such loans may be for various purposes, including but not limited

to, subscription line or “sub-line” credit facilities secured by the uncalled

capital commitments of such private investment vehicles' investors.

Although such capital commitments are typically subject to legally

binding agreements, there can be no assurance that the investors will

meet their funding obligations when called. As a result, the Fund may be

subject to the risk of delay or default in repayment of the loan, which

could negatively impact the Fund's performance. Additionally, the Fund

may face liquidity risks if the private investment vehicle is unable to

draw on capital commitments in a timely manner.

In connection with purchasing loan participations, the Fund generally

will have no right to enforce compliance by the borrower with the terms

of the loan agreement relating to the loan, nor any rights of set-off

against the borrower, and the Fund may not directly benefit from any

collateral supporting the loan in which it has purchased the loan

participation. As a result, the Fund will be subject to the credit risk of

both the borrower and the lender that is selling the participation. In the

event of the insolvency of the lender selling a participation, the Fund

may be treated as a general creditor of the lender and may not benefit

from any set-off between the lender and the borrower. Certain loan

participations may be structured in a manner designed to prevent

purchasers of participations from being subject to the credit risk of the

lender, but even under such a structure, in the event of the lender’s

insolvency, the lender’s servicing of the participation may be delayed

and the assignability of the participation impaired.

The Fund may have difficulty disposing of loans and loan participations.

Because there may not be a liquid market for many such investments,

the Fund anticipates that such investments could be sold only to a

limited number of institutional investors. The lack of a liquid secondary

market may have an adverse impact on the value of such investments

and the Fund's ability to dispose of particular loans and loan

participations when that would be desirable, including in response to a

specific economic event such as a deterioration in the creditworthiness

of the borrower. The lack of a liquid secondary market for loans and loan

participations also may make it more difficult for the Fund to assign a

value to these securities for purposes of valuing the Fund's portfolio.

Investments in loans may include participations in bridge loans, which

are loans taken out by borrowers for a short period (typically less than

one year) pending arrangement of more permanent financing through,

for example, the issuance of bonds, frequently high yield bonds issued

for the purpose of acquisitions.

Investments in loans may include acquisitions of, or participation in,

delayed draw and delayed funding loans and revolving credit facilities.

These commitments may have the effect of requiring the Fund to

increase its investment in a borrower at a time when it might not

otherwise decide to do so (including at a time when the company's

| Interval Funds

The Fund may invest in loans used to finance the cost of construction,

acquisition, development, and/ or rehabilitation of a property including,

but not limited to, development of single-family for-sale homes,

multi-family rentals and/or commercial facilities. Such construction

lending may expose the Fund to increased risk of non-payment and loss

because the loan is not backed by a finished project. Such risk may

depend on the nature of the construction and the relevant counterparty

or counterparties, which may include, but not be limited to,

homebuilders, private developers and/or entities with limited capital.

Repayment of these types of loans may depend on the borrower’s ability

to secure permanent “take-out” financing, which requires the successful

completion of the project, or operation of the property with an income

stream sufficient to meet operating and loan expenses. In addition,

these types of loans are subject to the risk of errors in estimations of the

property’s value at completion of construction and the estimated cost of

construction, as well as the risk that the projects may not be completed

and have limited liquidity.

To the extent the Fund invests in loans, or originates loans, the Fund

may be subject to greater levels of credit risk, call risk, settlement risk,

risk of subordination to other creditors, insufficient or lack of protection

under federal securities laws and liquidity risk. These instruments are

considered predominantly speculative with respect to an issuer’s

continuing ability to make principal and interest payments and may be

more volatile than other types of securities. The Fund may also be

subject to greater levels of liquidity risk than funds that do not invest in

loans. In addition, the loans in which the Fund invests may not be listed

on any exchange and a secondary market for such loans may be

comparatively illiquid relative to markets for other more liquid fixed

income securities. Consequently, transactions in loans may involve

greater costs than transactions in more actively traded securities. In

connection with certain loan transactions, transaction costs that are

borne by the Fund may include the expenses of third parties that are

retained to assist with reviewing and conducting diligence, negotiating,

structuring and servicing a loan transaction, and/or providing other

services in connection therewith. Furthermore, the Fund may incur such

costs in connection with loan transactions that are pursued by the Fund

but not ultimately consummated (so-called “broken deal costs”).

Restrictions on transfers in loan agreements, a lack of publicly-available

information, irregular trading activity and wide bid/ask spreads, among

other factors, may, in certain circumstances, make loans more difficult to

sell at an advantageous time or price than other types of securities or

instruments. These factors may result in the Fund being unable to realize

full value for the loans and/or may result in the Fund not receiving the

The Fund’s investments in subordinated and unsecured loans generally

are subject to similar risks as those associated with investments in

secured loans. Subordinated or unsecured loans are lower in priority of

payment to secured loans and are subject to the additional risk that the

cash flow of the borrower and property securing the loan or debt, if any,

may be insufficient to meet scheduled payments after giving effect to

the senior secured obligations of the borrower. This risk is generally

higher for subordinated unsecured loans or debt, which are not backed

by a security interest in any specific collateral. Subordinated and

unsecured loans generally have greater price volatility than secured

loans and may be less liquid. There is also a possibility that originators

will not be able to sell participations in subordinated or unsecured

loans, which would create greater credit risk exposure for the holders of

such loans. Subordinate and unsecured loans share the same risks as

other below investment grade securities.

There may be less readily available information about most loans and

the underlying borrowers than is the case for many other types of

securities. Loans may be issued by borrowers that are not subject to SEC

reporting requirements and therefore may not be required to file reports

with the SEC or may file reports that are not required to comply with

SEC form requirements. In addition, such borrowers may be subject to a

less stringent liability disclosure regime than companies subject to SEC

reporting requirements. Loans may not be considered “securities,” and

purchasers, such as the Fund, therefore may not be entitled to rely on

the anti-fraud protections of the federal securities laws. Because there is

limited public information available regarding loan investments, the

Fund is particularly dependent on the analytical abilities of the Fund’s

portfolio managers.

Economic exposure to loan interests through the use of derivative

transactions may involve greater risks than if the Fund had invested in

the loan interest directly during a primary distribution, through direct

originations or through assignments of, novations of or participations in

a loan acquired in secondary markets since, in addition to the risks

described above, certain derivative transactions may be subject to

leverage risk and greater illiquidity risk, counterparty risk, valuation risk

and other risks.

The Fund may originate loans, including, without limitation, residential

and/or commercial real estate or mortgage-related loans, consumer

loans or other types of loans, which may be in the form of, and without

limitation as to a loan’s level of seniority within a capital structure,

whole loans, assignments, participations, secured and unsecured notes,

October 31, 2025 (as supplemented January 6, 2026) |

  

Bridge loans are generally made with the expectation that the borrower

will be able to obtain permanent financing in the near future. Any delay

in obtaining permanent financing subjects the bridge loan investor to

increased risk. A borrower's use of bridge loans also involves the risk

that the borrower may be unable to locate permanent financing to

replace the bridge loan, which may impair the borrower's perceived

creditworthiness.

Loan origination and servicing companies are routinely involved in legal

proceedings concerning matters that arise in the ordinary course of their

business. In addition, a number of participants in the loan origination

and servicing industry (including control persons of industry

participants) have been the subject of regulatory actions by state

regulators, including state attorneys general, and by the federal

government. Governmental investigations, examinations or regulatory

actions, or private lawsuits, including purported class action lawsuits,

may adversely affect such companies' financial results. To the extent the

Fund engages in origination and/or servicing directly, or has a financial

interest in, or is otherwise affiliated with, an origination or servicing

company, the Fund will be subject to enhanced risks of litigation,

regulatory actions and other proceedings. As a result, the Fund may be

required to pay legal fees, settlement costs, damages, penalties or other

charges, any or all of which could materially adversely affect the Fund

and its holdings.

Foreign Loan Originations Risk

The Fund may originate loans to foreign entities and individuals,

including foreign (non-U.S.) and emerging market entities and

individuals. Such loans may involve risks not ordinarily associated with

exposure to loans to United States entities and individuals. The foreign

lending industry may be subject to less governmental supervision and

regulation than exists in the United States; conversely, foreign

regulatory regimes applicable to the lending industry may be more

complex and more restrictive than those in the United States, resulting

in higher costs associated with such investments, and such regulatory

regimes may be subject to interpretation or change without prior notice

to investors, such as the Fund. Foreign lending may not be subject to

accounting, auditing, and financial reporting standards and practices

comparable to those in the United States Due to differences in legal

systems, there may be difficulty in obtaining or enforcing a court

judgment outside the United States In addition, to the extent that

investments are made in a limited number of countries, events in those

countries will have a more significant impact on the Fund. The Fund’s

loans to foreign entities and individuals may be subject to risks of

increased transaction costs, potential delays in settlement or

unfavorable differences between the U.S. economy and foreign

economies.

The Fund’s exposure to loans to foreign entities and individuals may be

subject to withholding and other foreign taxes, which may adversely

affect the net return on such investments. In addition, fluctuations in

foreign currency exchange rates and exchange controls may adversely

affect the market value of the Fund’s exposure to loans to foreign

entities and individuals. The Fund is unlikely to be able to pass through

to its shareholders foreign income tax credits in respect of any foreign

income taxes it pays.

The Gramm-Leach-Bliley Act (“GLBA”) and other laws limit the

disclosure of certain non-public personal information about a consumer

to non-affiliated third parties and require financial institutions to

disclose certain privacy policies and practices with respect to

information sharing with both affiliates and non-affiliated third parties.

Many states and a number of non-U.S. jurisdictions have enacted

privacy and data security laws requiring safeguards on the privacy and

security of consumers’ personally identifiable information. Other laws

deal with obligations to safeguard and dispose of private information in

a manner designed to avoid its dissemination. Privacy rules adopted by

the U.S. Federal Trade Commission and SEC implement the GLBA and

other requirements and govern the disclosure of consumer financial

information by certain financial institutions, ranging from banks to

private investment funds. U.S. platforms following certain models

generally are required to have privacy policies that conform to these

GLBA and other requirements. In addition, such platforms typically have

policies and procedures intended to maintain platform participants’

personal information securely and dispose of it properly.

| Interval Funds

The Alt Lending ABS in which the Fund may invest are typically not listed

on any securities exchange and not registered under the Securities Act.

In addition, the Fund anticipates that these instruments may only be

sold to a limited number of investors and may have a limited or

non-existent secondary market. Accordingly, the Fund currently expects

that certain of the investments it may make in Alt Lending ABS will face

heightened levels of liquidity risk. Although currently there is generally

no reliable, active secondary market for certain Alt Lending ABS, a

secondary market for these Alt Lending ABS may develop. If the Fund

purchases Alt Lending ABS on an alternative lending platform, the Fund

will have the right to receive principal and interest payments due on

loans underlying the Alt Lending ABS only if the platform servicing the

loans receives the borrower’s payments on such loans and passes such

payments through to the Fund. If a borrower is unable or fails to make

payments on a loan for any reason, the Fund may be greatly limited in

its ability to recover any outstanding principal or interest due, as (among

other reasons) the Fund may not have direct recourse against the

borrower or may otherwise be limited in its ability to directly enforce its

rights under the loan, whether through the borrower or the platform

through which such loan was originated, the loan may be unsecured or

under-collateralized and/or it may be impracticable to commence a legal

proceeding against the defaulting borrower.

The Fund may have limited knowledge about the underlying loans and

is dependent upon the platform for information regarding underlying

loans. Although PIMCO may conduct diligence on the platforms, the

Fund generally does not have the ability to independently verify the

information provided by the platforms, other than payment information

regarding loans underlying the Alt Lending ABS owned by the Fund,

which the Fund observes directly as payments are received. With respect

to Alt Lending ABS that the Fund purchases in the secondary market

(i.e., not directly from an alternative lending platform), the Fund may not

perform the same level of diligence on such platform or at all. The Fund

may not review the particular characteristics of the loans collateralizing

an Alt Lending ABS, but rather negotiate in advance with platforms the

The Fund relies on the borrower’s credit information, which is provided

by the platforms. However, such information may be out of date,

incomplete or inaccurate and may, therefore, not accurately reflect the

borrower’s actual creditworthiness. Platforms may not have an

obligation to update borrower information, and, therefore, the Fund

may not be aware of any impairment in a borrower’s creditworthiness

subsequent to the making of a particular loan. The platforms’ credit

decisions and scoring models may be based on algorithms that could

potentially contain programming or other errors or prove to be

ineffective or otherwise flawed. This could adversely affect loan pricing

data and approval processes and could cause loans to be mispriced or

misclassified, which could ultimately have a negative impact on the

Fund’s performance.

In addition, the underlying loans, in some cases, may be affected by the

success of the platforms through which they are facilitated. Therefore,

disruptions in the businesses of such platforms may also negatively

impact the value of the Fund’s investments. In addition, disruption in the

business of a platform could limit or eliminate the ability of the Fund to

invest in loans originated by that platform, and therefore the Fund could

lose some or all of the benefit of its diligence effort with respect to that

platform.

Platforms are for-profit businesses that, as a general matter, generate

revenue by collecting fees on funded loans from borrowers and by

assessing a loan servicing fee on investors, which may be a fixed annual

amount or a percentage of the loan or amounts collected. This business

could be disrupted in multiple ways; for example, a platform could file

for bankruptcy or a platform might suffer reputational harm from

negative publicity about the platform or alternative lending more

generally and the loss of investor confidence in the event that a loan

facilitated through the platform is not repaid and the investor loses

money on its investment. Many platforms and/or their affiliates have

incurred operating losses since their inception and may continue to

incur net losses in the future, particularly as their businesses grow and

they incur additional operating expenses.

Platforms may also be forced to defend legal action taken by regulators

or governmental bodies. Alternative lending is a newer industry

operating in an evolving legal environment. Platforms may be subject to

risk of litigation alleging violations of law and/or regulations, including,

for example, consumer protection laws, whether in the U.S. or in foreign

jurisdictions. Platforms may be unsuccessful in defending against such

lawsuits or other actions and, in addition to the costs incurred in

fighting any such actions, platforms may be required to pay money in

connection with the judgments, settlements or fines or may be forced to

modify the terms of its borrower loans, which could cause the platform

to realize a loss or receive a lower return on a loan than originally

anticipated. Platforms may also be parties to litigation or other legal

action in an attempt to protect or enforce their rights or those of

affiliates, including intellectual property rights, and may incur similar

costs in connection with any such efforts.

October 31, 2025 (as supplemented January 6, 2026) |

  

To the extent consistent with the applicable liquidity requirements for

interval funds under Rule 23c-3 of the 1940 Act, the Fund may invest

without limit in illiquid investments. Liquidity risk exists when particular

investments are difficult to purchase or sell. Illiquid investments are

investments that the Fund reasonably expects cannot be sold or

disposed of in current market conditions in seven calendar days or less

without the sale or disposition significantly changing the market value

of the investment. Illiquid investments may become harder to value,

especially in changing markets. The Fund’s investments in illiquid

investments may reduce the returns of the Fund because it may be

unable to sell the illiquid investments at an advantageous time or price

or possibly require the Fund to dispose of other investments at

unfavorable times or prices in order to satisfy its obligations, which

could prevent the Fund from taking advantage of other investment

opportunities. Illiquidity can be caused by, among other things, a drop in

overall market trading volume, an inability to find a willing buyer, or

legal restrictions on the securities’ resale. Additionally, the market for

certain investments may become illiquid under adverse market or

economic conditions independent of any specific adverse changes in the

conditions of a particular issuer, such as during political events

(including periods of rapid interest rate changes). There can be no

assurance that an investment that is deemed to be liquid when

purchased will continue to be liquid while it is held by the Fund and/or

when the Fund wishes to dispose of it. Bond markets have consistently

grown over the past three decades while the capacity for traditional

dealer counterparties to engage in fixed income trading has not kept

pace and in some cases has decreased. As a result, dealer inventories of

Further, fixed income securities with longer durations until maturity face

heightened levels of liquidity risk as compared to fixed income securities

with shorter durations until maturity. The risks associated with illiquid

instruments may be particularly acute in situations in which the Fund’s

operations require cash (such as in connection with repurchase offers)

and could result in the Fund borrowing to meet its short-term needs or

incurring losses on the sale of illiquid instruments. It may also be the

case that other market participants may be attempting to liquidate fixed

income holdings at the same time as the Fund, causing increased supply

in the market and contributing to liquidity risk and downward pricing

pressure.

To the extent the Fund invests in Alt Lending ABS, the Alt Lending ABS in

which the Fund invests are typically not listed on any securities

exchange and not registered under the Securities Act. In addition, the

Fund anticipates that these instruments may only be sold to a limited

number of investors and may have a limited or non-existent secondary

market. Accordingly, the Fund currently expects that certain of its

investments in Alt Lending ABS will face heightened levels of liquidity

risk. Although currently there is generally no active reliable, secondary

market for certain Alt Lending ABS, a secondary market for these

alternative lending-related instruments may develop.

Liquidity risk also refers to the risk that the Fund may be required to

hold additional cash or sell other investments in order to obtain cash to

close out derivatives or meet the liquidity demands that derivatives can

create to make payments of margin, collateral, or settlement payments

to counterparties. The Fund may have to sell a security at a

disadvantageous time or price to meet such obligations. The action(s) of

governments and regulators may have the effect of reducing market

liquidity, market resiliency and money supply.

Covenant-lite obligations contain fewer maintenance covenants than

other obligations, or no maintenance covenants, and may not include

terms that allow the lender to monitor the performance of the borrower

and declare a default if certain criteria are breached, which would allow

the lender to restructure the loan or take other action intended to help

| Interval Funds

Income from the Fund’s portfolio will decline if and when the Fund

invests the proceeds from matured, traded or called debt obligations at

market interest rates that are below the portfolio’s current earnings

rate. For instance, during periods of declining interest rates, an issuer of

debt obligations may exercise an option to redeem securities prior to

maturity, forcing the Fund to invest in lower-yielding securities. The Fund

also may choose to sell higher yielding portfolio securities and to

purchase lower yielding securities to achieve greater portfolio

diversification, because the portfolio managers believe the current

holdings are overvalued or for other investment-related reasons. A

decline in income received by the Fund from its investments is likely to

have a negative effect on dividend levels and the market price, NAV

and/or overall return of the Common Shares.

Call risk refers to the possibility that an issuer may exercise its right to

redeem a fixed income security earlier than expected (a call). Issuers

may call outstanding securities prior to their maturity for a number of

reasons (e.g., declining interest rates, changes in credit spreads and

improvements in the issuer’s credit quality). If an issuer calls a security in

which the Fund has invested, the Fund may not recoup the full amount

of its initial investment or may not realize the full anticipated earnings

from the investment and may be forced to reinvest in lower-yielding

securities, securities with greater credit risks or securities with other, less

favorable features.

To the extent that the Fund invests directly or indirectly in real estate

investments, including investments in equity or debt securities issued by

private and public REITs, real estate operating companies (“REOCs”),

private or public real estate-related loans and real estate-linked

derivative instruments and pooled investment vehicles (including

registered investment companies and private funds or other pooled

investment vehicles that would qualify as “investment companies”

under the 1940 Act but for an applicable exemption or exclusion) that

invest in real estate companies, it will be subject to the risks associated

with owning real estate and with the real estate industry generally.

These investments carry increased risks, which include, but are not

limited to: the burdens of ownership of real property; general and local

economic conditions (such as an oversupply of space or a reduction in

demand for space); fluctuations in the supply and demand for properties

(including competition based on rental rates); energy and supply

Ultimately, to the extent it is not possible to renew leases or re-let space

as leases expire, decreased cash flow from tenants will result, which

could adversely impact the Fund’s operating results.

Real estate values have historically been cyclical. As the general

economy grows, demand for real estate increases and occupancies and

rents may increase. As occupancies and rents increase, property values

increase, and new development occurs. As development may occur,

occupancies, rents and property values may decline. Because leases are

usually entered into for long periods and development activities often

require extended times to complete, the real estate value cycle often

lags the general business cycle. Because of this cycle, real estate

companies may incur large swings in their profits and the prices of their

securities. Developments following the onset of COVID-19 have

adversely impacted certain commercial real estate markets, causing the

deferral of mortgage payments, renegotiated commercial mortgage

October 31, 2025 (as supplemented January 6, 2026) |

  

The total returns available from investments in real estate generally

depend on the amount of income and capital appreciation generated by

the related properties. The performance of real estate, and thereby the

Fund, will be reduced by any related expenses, such as expenses paid

directly at the property level and other expenses that are capitalized or

otherwise embedded into the cost basis of the real estate.

Separately, certain service providers to the Fund and/or its subsidiaries,

as applicable, with respect to its real estate or real estate-related

investments may be owned by, employed by, or otherwise related to,

PIMCO, Allianz SE, their affiliates and/or their respective employees,

consultants and other personnel. PIMCO may, in its sole discretion,

determine to provide, or engage or recommend an affiliate of PIMCO to

provide, certain services to the Fund, instead of engaging or

recommending one or more third parties to provide such services.

Subject to the governance requirements of a particular fund and

applicable law, PIMCO or its affiliates, as applicable, will receive

compensation in connection with the provision of such services. As a

result, PIMCO faces a conflict of interest when selecting or

recommending service providers for the Fund. Fees paid to an affiliated

service provider will be determined in PIMCO's commercially reasonable

discretion. Although PIMCO has adopted various policies and

procedures intended to mitigate or otherwise manage conflicts of

interest with respect to affiliated service providers, there can be no

guarantee that such policies and procedures (which may be modified or

terminated at any time in PIMCO's sole discretion) will be successful.

Certain U.S. government securities, such as U.S. Treasury bills, notes and

bonds, and mortgage-related securities guaranteed by the Government

National Mortgage Association (“GNMA”), are supported by the full

faith and credit of the United States; others, such as those of Federal

Home Loan Banks (“FHLBs”) or the Federal Home Loan Mortgage

Corporation (“FHLMC”), are supported by the right of the issuer to

borrow from the U.S. Treasury; others, such as those of the Federal

National Mortgage Association (“FNMA”), are supported by the

discretionary authority of the U.S. government to purchase the agency’s

obligations; and still others are supported only by the credit of the

agency, instrumentality or corporation. U.S. government securities are

subject to market risk, interest rate risk and credit risk. Although

legislation has been enacted to support certain government sponsored

entities, including the FHLBs, FHLMC and FNMA, there is no assurance

that the obligations of such entities will be satisfied in full, or that such

obligations will not decrease in value or default. It is difficult, if not

impossible, to predict the future political, regulatory or economic

changes that could impact the government sponsored entities and the

values of their related securities or obligations. In addition, certain

governmental entities, including FNMA and FHLMC, have been subject

to regulatory scrutiny regarding their accounting policies and practices

Yields available from U.S. government debt securities are generally

lower than the yields available from such other securities. The values of

U.S. government securities change as interest rates fluctuate.

Periodically, uncertainty regarding the status of negotiations in the

U.S. government to increase the statutory debt ceiling could increase the

risk that the U.S. government may default on payments on certain

U.S. government securities, cause the credit rating of the

U.S. government to be downgraded, increase volatility in the stock and

bond markets, result in higher interest rates, reduce prices of

U.S. Treasury and other securities, and/or increase the costs of various

kinds of debt. If a government-sponsored entity is negatively impacted

by legislative or regulatory action (or lack thereof), is unable to meet its

obligations, or its creditworthiness declines, the performance of a fund

that holds securities of the entity will be adversely impacted.

Convertible securities are fixed income securities, preferred securities or

other securities that are convertible into or exercisable for common

stock of the issuer (or cash or securities of equivalent value) at either a

stated price or a stated rate. Convertible debt securities pay interest and

convertible preferred stocks pay dividends until they mature or are

converted, exchanged or redeemed. The market values of convertible

securities may decline as interest rates increase and, conversely, may

increase as interest rates decline. A convertible security’s market value,

however, tends to reflect the market price of the common stock of the

issuing company when that stock price approaches or is greater than

the convertible security’s “conversion price.” The conversion price is

defined as the predetermined price at which the convertible security

could be exchanged for the associated stock. Certain types of

convertible securities may decline in value or lose their value entirely in

the event the issuer’s financial condition becomes significantly impaired.

As the market price of the underlying common stock declines, the price

of the convertible security tends to be influenced more by the yield of

the convertible security. Thus, it may not decline in price to the same

extent as the underlying common stock. In the event of a liquidation of

the issuing company, holders of convertible securities may be paid

before the company’s common stockholders but after holders of any

senior debt obligations of the company. Consequently, the issuer’s

convertible securities generally entail less risk than its common stock

but more risk than its other debt obligations. Convertible securities are

often rated below investment grade or not rated.

Contingent convertible securities (“CoCos”) have no stated maturity,

have fully discretionary coupons and are typically issued in the form of

subordinated debt instruments. CoCos generally either convert into

equity or have their principal written down (including potentially to

zero) upon the occurrence of certain triggering events (“triggers”)

| Interval Funds

Certain securities in which the Fund invests may be less liquid and more

difficult to value than other types of securities. Investments for which

market quotations are not readily available are valued at fair value as

determined in good faith pursuant to Rule 2a-5 under the 1940 Act. Fair

value pricing may require subjective determinations about the value of a

security or other asset. As a result, there can be no assurance that fair

value pricing will result in adjustments to the prices of securities or other

assets or that fair value pricing will reflect actual market value, and it is

possible that the fair value determined for a security or other asset will

be materially different from quoted or published prices, from the prices

used by others for the same security or other asset and/or from the

value that actually could be or is realized upon the sale of that security

or other asset.

The Fund’s use of leverage, if any, creates the opportunity for increased

Common Share net income, but also creates special risks for Common

Shareholders (including an increased risk of loss). To the extent used,

there is no assurance that the Fund’s leveraging strategies will be

successful. Leverage is a speculative technique that may expose the

Fund to greater risk and increased costs. The Fund’s assets attributable

to leverage, if any, will be invested in accordance with the Fund’s

investment objective and policies. Interest expense payable by the Fund

with respect to derivatives and other forms of leverage, and dividends

payable with respect to preferred shares outstanding, if any, will

generally be based on shorter-term interest rates that would be

periodically reset. So long as the Fund’s portfolio investments provide a

higher rate of return (net of applicable Fund expenses) than the interest

expenses and other costs to the Fund of such leverage, the investment

of the proceeds thereof will generate more income than will be needed

to pay the costs of the leverage. If so, and all other things being equal,

In addition, the counterparties to the Fund’s leveraging transactions and

any preferred shareholders of the Fund will have priority of payment

over the Fund’s Common Shareholders.

Reverse repurchase agreements involve the risks that the interest

income earned on the investment of the proceeds will be less than the

interest expense and Fund expenses associated with the repurchase

agreement, that the market value of the securities sold by the Fund may

decline below the price at which the Fund is obligated to repurchase

such securities and that the securities may not be returned to the Fund.

There is no assurance that reverse repurchase agreements can be

October 31, 2025 (as supplemented January 6, 2026) |

  

The Fund may engage in total return swaps, reverse repurchases, loans

of portfolio securities, short sales and when-issued, delayed delivery and

forward commitment transactions, credit default swaps, basis swaps

and other swap agreements, purchases or sales of futures and forward

contracts (including foreign currency exchange contracts), call and put

options or other derivatives. The Fund’s use of such transactions gives

rise to associated leverage risks described above, and may adversely

affect the Fund’s income, distributions and total returns to Common

Shareholders. To the extent that any offsetting positions do not behave

in relation to one another as expected, the Fund may perform as if it is

leveraged through use of these derivative strategies.

Any total return swaps, reverse repurchases, loans of portfolio securities,

short sales and when-issued, delayed delivery and forward commitment

transactions, credit default swaps, basis swaps and other swap

agreements, purchases or sales of futures and forward contracts

(including foreign currency exchange contracts), call and put options or

other derivatives by the Fund or counterparties to the Fund’s other

leveraging transactions, if any, would have seniority over the Fund’s

Common Shares.

Because the fees received by the Investment Manager may increase

depending on the types of leverage utilized by the Fund, the Investment

Manager has a financial incentive for the Fund to use certain forms of

leverage, which may create a conflict of interest between the Investment

Manager, on the one hand, and the Common Shareholders, on the other

hand.

To the extent that any Subsidiary of the Fund directly incurs leverage in

the form of debt or preferred shares, the amount of such leverage used

by the Fund and such Subsidiaries will be consolidated and treated as

senior securities for purposes of complying with the 1940 Act’s

limitations on leverage by the Fund.

To the extent that the Fund focuses its investments in a particular sector,

it may be susceptible to loss due to adverse developments affecting that

sector, including (but not limited to): governmental regulation; inflation;

rising interest rates; cost increases in raw materials, fuel and other

operating expenses; technological innovations that may render existing

products and equipment obsolete; competition from new entrants; high

research and development costs; increased costs associated with

compliance with environmental or other governmental regulations; and

other economic, business or political developments specific to that

Equity securities represent an ownership interest, or the right to acquire

an ownership interest, in an issuer. Equity securities also include, among

other things, common stocks, preferred securities, convertible stocks and

warrants. The values of equity securities, such as common stocks and

preferred securities, may decline due to general market conditions that

are not specifically related to a particular company, such as real or

perceived adverse economic conditions, changes in the general outlook

for corporate earnings, changes in inflation, interest or currency rates,

financial system instability or adverse investor sentiment generally. They

may also decline due to factors that affect a particular industry or

industries, such as regulatory changes, labor shortages or increased

production costs and competitive conditions within an

industry.Conversely, a change in financial condition or other event

affecting a single issuer or industry may adversely impact securities

markets as a whole. Equity securities generally have greater price

volatility than most fixed income securities. These risks are generally

magnified in the case of equity investments in distressed companies.

Subject to applicable limits under the 1940 Act, the Fund may invest in

other pooled investment vehicles, including investment companies,

private funds or other pooled investment vehicles that would qualify as

“investment companies” under the 1940 Act but for an applicable

exemption or exclusion, including but not limited to Sections 3(c)(1) or

3(c)(7) of the 1940 Act (“Private Funds”). When investing in an

investment company, the Fund will generally bear its ratable share of

that investment company's expenses and would remain subject to

payment of the Fund's investment management fees and other

expenses with respect to assets so invested. Common Shareholders

would therefore be subject to duplicative expenses to the extent the

Fund invests in other investment companies. In addition, other

investment companies may utilize leverage, in which case an investment

would subject the Fund to additional risks associated with leverage. Due

to its own financial interest or other business considerations, the

Investment Manager may choose to invest a portion of the Fund’s assets

in investment companies sponsored or managed by the Investment

Manager or its related parties in lieu of investments by the Fund directly

in portfolio securities, or may choose to invest in such investment

companies over investment companies sponsored or managed by

others. Participation in a cash sweep program where the Fund's

uninvested cash balance is used to purchase shares of affiliated or

unaffiliated money market funds or cash management pooled

investment vehicles at the end of each day subjects the Fund to the risks

| Interval Funds

To the extent the Fund invests through one or more Private Funds, the

Fund would be exposed to the risks associated with such Private Fund’s

investments. The Fund’s investments in Private Funds would not be

subject to the protections afforded to shareholders under the 1940 Act.

These protections include, among others, certain corporate governance

standards, such as the requirement of having a certain percentage of

the directors serving on a board as independent directors, statutory

protections against self-dealing by Private Fund managers, and leverage

limitations. By investing in Private Funds indirectly through the Fund, a

shareholder would bear two layers of asset-based fees and expenses –

at the Fund level and the Private Fund level – in addition to indirectly

bearing any performance fees charged by the Private Fund.

The Fund may, but is not required to, utilize a variety of derivative

instruments (both long and short positions) for investment or risk

management purposes. Additionally, the Fund may invest in futures and

other derivatives that provide equity exposures, including for

equitization and hedging purposes, using derivatives that provide

exposure that is not identical to the instruments or markets in which the

Fund seeks to invest 80% of its assets. Derivatives or other similar

instruments (referred to collectively as “derivatives”) are financial

contracts whose value depends on, or is derived from, the value of an

underlying asset, reference rate or index. For example, the Fund may use

derivative instruments for purposes of increasing liquidity, providing

efficient portfolio management, broadening investment opportunities

(including taking short or negative positions), implementing a tax or

cash management strategy, gaining exposure to a particular security or

segment of the market, modifying the effective duration of the Fund's

portfolio investments and/or enhancing total return. Investments in

derivatives may take the form of buying and/or writing (selling)

derivatives, and/or the Fund may otherwise become an obligor under a

derivatives transaction. These transactions may produce short-term

capital gains in the form of premiums or other returns for the Fund

(which may support, constitute and/or increase the distributions paid by,

or the yield of, the Fund) but create the risk of losses that can

significantly exceed such current income or other returns. For example,

the premium received for writing a call option may be dwarfed by the

losses the Fund may incur if the call option is exercised, and derivative

transactions where the Fund is an obligor can produce an up-front

benefit, but the potential for leveraged losses. The distributions, or

distribution rates, paid by the Fund should not be viewed as the total

returns or overall performance of the Fund. These strategies may also

produce adverse tax consequences (for example, the Fund’s income and

gain-generating strategies may generate current income and gains,

including short-term capital gains, taxable as ordinary income) and limit

the Fund’s opportunity to profit or otherwise benefit from certain gains.

The Fund may enter into opposing derivative transactions, or otherwise

The Fund may engage in investment strategies, including the use of

derivatives, to, among other things, generate current, distributable

income, even if such strategies could potentially result in declines in the

Fund’s net asset value. The Fund’s income and gain-generating

strategies, including certain derivatives strategies, may generate current

income and gains, including short-term capital gains, taxable as

ordinary income sufficient to support distributions, even in situations

when the Fund has experienced a decline in net assets due to, for

example, adverse changes in the broad U.S. or non-U.S. securities

markets or the Fund’s portfolio of investments, or arising from its use of

derivatives. Consequently, Fund shareholders may receive distributions

subject to tax at ordinary income rates at a time when their investment

in the Fund has declined in value, which may be economically similar to

a taxable return of capital.

The use of derivatives involves risks different from, and possibly greater

than, the risks associated with investing directly in securities and other

traditional investments. Derivatives which may increase market

exposure, are subject to a number of risks, including leverage risk,

liquidity risk (which may be heightened for highly-customized

derivatives), interest rate risk, market risk, counterparty (including credit)

risk, operational risk (such as documentation issues, settlement issues

and systems failures), legal risk (such as insufficient documentation,

insufficient capacity or authority of a counterparty, and issues with the

legality or enforceability of a contract), management risk, risks arising

from changes in applicable regulatory requirements, risks arising from

margin requirements and risks arising from mispricing or valuation

complexity (including the risk of improper valuation), governmental risk,

as well as the risks associated with the underlying asset, reference rate

or index, or risk associated with sanctions. They also involve the risk that

changes in the value of a derivative instrument may not correlate

perfectly with the underlying asset, rate or index. By investing in a

derivative instrument, the Fund could lose more than the initial amount

invested, and derivatives may increase the volatility of the Fund,

especially in unusual or extreme market conditions. In addition, the use

of derivatives may cause the Fund’s investment returns to be impacted

by the performance of assets the Fund does not own, potentially

resulting in the Fund’s total investment exposure exceeding the value of

its portfolio. Certain derivatives have the potential for unlimited loss,

regardless of the size of the initial investment. The Fund may utilize

asset segregation and posting of collateral for risk management or

other purposes. The Fund may be required to hold additional cash or sell

other investments in order to obtain cash to close out a position and

changes in the value of a derivative may also create margin delivery or

settlement payment obligations for the Fund. Also, suitable derivative

transactions may not be available in all circumstances and there can be

no assurance that the Fund will engage in these transactions to reduce

exposure to other risks when that would be beneficial or that, if used,

such strategies will be successful. The Fund's use of derivatives may

increase or accelerate the amount of taxes payable by Common

Shareholders.

October 31, 2025 (as supplemented January 6, 2026) |

  

Participation in the markets for derivative instruments involves

investment risks and transaction costs to which the Fund may not be

subject absent the use of these strategies. The skills needed to

successfully execute derivative strategies may be different from those

needed for other types of transactions. If the Fund incorrectly forecasts

the value and/or creditworthiness of securities, currencies, interest rates,

counterparties or other economic factors involved in a derivative

transaction, the Fund might have been in a better position if the Fund

had not entered into such derivative transaction. In evaluating the risks

and contractual obligations associated with particular derivative

instruments or other similar investments, it is important to consider that

certain derivative transactions, absent a default or termination event,

may only be modified or terminated by mutual consent of the Fund and

its counterparty.

It may not be possible for the Fund to modify, terminate, or offset the

Fund's obligations or the Fund's exposure to the risks associated with a

derivative transaction prior to its scheduled termination or maturity

date, which may create a possibility of increased volatility and/or

decreased liquidity to the Fund. Hedges are sometimes subject to

imperfect matching between the derivative and the underlying

instrument, and there can be no assurance that the Fund's hedging

transactions will be effective. Derivatives used for hedging or risk

management may not operate as intended and may expose the Fund to

additional risks. In such case, the Fund may experience losses.

Because the markets for certain derivative instruments (including

markets located in foreign countries) are relatively new and still

developing, appropriate derivative transactions may not be available in

all circumstances for risk management or other purposes. Upon the

expiration of a particular contract, the Fund may wish to retain the

Fund’s position in the derivative instrument by entering into a similar

contract but may be unable to do so if the counterparty to the original

contract is unwilling to enter into the new contract and no other

appropriate counterparty can be found. When such markets are

unavailable, the Fund will be subject to increased liquidity and

investment risk.

The Fund may enter into opposite sides of interest rate swap and other

derivatives for the principal purpose of generating distributable gains on

the one side (characterized as ordinary income for tax purposes) that

are not part of the Fund’s duration or yield curve management

strategies (“paired swap transactions”), and with a substantial

possibility that the Fund will experience a corresponding capital loss

and decline in NAV with respect to the opposite side transaction (to the

extent it does not have corresponding offsetting capital gains).

Consequently, Common Shareholders may receive distributions and owe

When a derivative is used as a hedge against a position that the Fund

holds, any loss generated by the derivative generally should be

substantially offset by gains on the hedged investment, and vice versa.

Although hedging can reduce or eliminate losses, it can also reduce or

eliminate gains. Hedges are sometimes subject to imperfect matching

between the derivative and the underlying instrument, and there can be

no assurance that the Fund's hedging transactions will be effective.

Derivatives used for hedging or risk management may not operate as

intended or may expose the Fund to additional risks. In addition,

derivatives used for hedging may partially protect the Fund from the

risks they were intended to hedge yet not fully mitigate the impact of

such risks. The regulation of the derivatives markets has increased over

time, and additional future regulation of the derivatives markets may

make derivatives more costly, may limit the availability or reduce the

liquidity of derivatives, or may otherwise adversely affect the value or

performance of derivatives. Any such adverse future developments could

impair the effectiveness or raise the costs of the Fund’s derivative

transactions, impede the employment of the Fund’s derivatives

strategies, or adversely affect the Fund’s performance and cause the

Fund to lose value.

Credit default swap agreements may involve greater risks than if the

Fund had invested in the reference obligation directly since, in addition

to general market risks, credit default swaps are subject to leverage risk,

illiquidity risk, counterparty risk and credit risk. A buyer generally also

will lose its investment and recover nothing should no credit event occur

and the swap is held to its termination date. If a credit event were to

occur, the value of any deliverable obligation received by the seller (if

any), coupled with the upfront or periodic payments previously received,

may be less than the full notional value it pays to the buyer, resulting in

a loss of value to the seller. When the Fund acts as a seller of a credit

default swap, it is exposed to many of the same risks of leverage

described herein. As the seller, the Fund would receive a stream of

payments over the term of the swap agreement provided that no event

of default has occurred with respect to the referenced debt obligation

upon which the swap is based. The Fund would effectively add leverage

to its portfolio because, if a default occurs, the stream of payments may

stop and, in addition to its total net assets, the Fund would be subject to

investment exposure on the notional amount of the swap.

| Interval Funds

The market for credit default swaps has become more volatile as the

creditworthiness of certain counterparties has been questioned and/or

downgraded. The Fund will be subject to credit risk with respect to the

counterparties to the credit default swap contract (whether a clearing

corporation or another third party). If a counterparty’s credit becomes

significantly impaired, multiple requests for collateral posting in a short

period of time could increase the risk that the Fund may not receive

adequate collateral. The Fund may exit its obligations under a credit

default swap only by terminating the contract and paying applicable

breakage fees, or by entering into an offsetting credit default swap

position, which may cause the Fund to incur more losses.

Holders of structured products, including, structured notes, credit-linked

notes and other types of structured products, bear the risks of the

underlying investments, index or reference obligation and are subject to

counterparty risk. The Fund may have the right to receive payments only

from the structured product, and generally does not have direct rights

against the issuer or the entity that sold the assets to be securitized.

While certain structured products enable the investor to acquire

interests in a pool of securities without the brokerage and other

expenses associated with directly holding the same securities, investors

in structured products generally pay their share of the structured

product’s administrative and other expenses. Although it is difficult to

predict whether the prices of indexes and securities underlying

structured products will rise or fall, these prices (and, therefore, the

prices of structured products) are generally influenced by the same types

of political and economic events that affect issuers of securities and

capital markets generally. If the issuer of a structured product uses

shorter term financing to purchase longer term securities, the issuer may

be forced to sell its securities at below market prices if it experiences

difficulty in obtaining such financing, which may adversely affect the

value of the structured products owned by the Fund. Structured

products generally entail risks associated with derivative

instruments. See “Principal Risks of the Fund – Derivatives Risk”.

The Fund will be subject to credit risk with respect to the counterparties

to the derivative contracts and other instruments entered into by the

Fund or held by special purpose or structured vehicles in which the Fund

invests. For example, if a bank at which the Fund or issuer has an

account fails, any cash or other assets in bank or custody accounts,

which may be substantial in size, could be temporarily inaccessible or

permanently lost by the Fund or issuer. In the event that the Fund enters

into a derivative transaction with a counterparty that subsequently

In managing the Fund (and other PIMCO clients), PIMCO may from time

to time have the opportunity to receive material, non-public information

(“Confidential Information”) about the issuers of certain investments,

including, without limitation, senior floating rate loans, other loans and

related investments being considered for acquisition by the Fund or held

in the Fund’s portfolio. For example, an issuer of privately placed loans

considered by the Fund may offer to provide PIMCO with financial

information and related documentation regarding the issuer that is not

publicly available. Pursuant to applicable policies and procedures,

PIMCO may (but is not required to) seek to avoid receipt of Confidential

Information issuer so as to avoid possible restrictions on its ability to

purchase and sell investments on behalf of the Fund and other clients to

which such Confidential Information relates. In such circumstances, the

Fund (and other PIMCO clients) may be disadvantaged in comparison to

other investors, including with respect to the price the Fund pays or

receives when it buys or sells an investment. Further, PIMCO’s and the

Fund’s abilities to assess the desirability of proposed consents, waivers

or amendments with respect to certain investments may be

compromised if they are not privy to available Confidential Information.

PIMCO may also determine to receive such Confidential Information in

certain circumstances under its applicable policies and procedures. If

PIMCO intentionally or unintentionally comes into possession of

Confidential Information, it may be unable, potentially for a substantial

period of time, to purchase or sell investments to which such

Confidential Information relates.

October 31, 2025 (as supplemented January 6, 2026) |

  

Private Placements Risk

A private placement involves the sale of securities that have not been

registered under the Securities Act, or relevant provisions of applicable

non-U.S. law, to certain institutional and qualified individual purchasers,

such as the Fund. In addition to the general risks to which all securities

are subject, securities received in a private placement generally are

subject to strict restrictions on resale, and there may be no liquid

secondary market or ready purchaser for such securities. See “Principal

Risks of the Fund—Liquidity Risk.” Therefore, the Fund may be unable

to dispose of such securities when it desires to do so, or at the most

favorable time or price. Private placements may also raise valuation

risks. See “Principal Risks of the Fund—Valuation Risk.”

Inflation risk is the risk that the value of assets or income from the

Fund’s investments will be worth less in the future as inflation decreases

the value of payments at future dates. As inflation increases, the real

value of the Fund’s portfolio could decline. Inflation rates may change

frequently and significantly as a result of various factors, including

unexpected shifts in the domestic or global economy or changes in fiscal

or monetary policies. Deflation risk is the risk that prices throughout the

economy decline over time. Deflation may have an adverse effect on the

creditworthiness of issuers and may make issuer default more likely,

which may result in a decline in the value of the Fund’s portfolio and

Common Shares.

The Fund may invest in insurance-linked instruments and similar

investments (which may include, for example, exposure to reinsurance

contracts (through sidecars or otherwise), event-linked bonds, such as

catastrophe and resilience bonds, and securities relating to life

insurance policies, annuity contracts and premium finance loans). The

Fund could lose a portion or all of the principal it has invested in these

types of investments, and the right to additional interest and/or dividend

payments with respect to the investments, upon the occurrence of one

or more trigger events, as defined within the terms of an investment.

Trigger events may include natural or other perils of a specific size or

magnitude that occur in a designated geographic region during a

specified time period, and/or that involve losses or other metrics that

exceed a specific amount. The Fund may also invest in insurance-linked

instruments that are subject to “indemnity triggers.” An indemnity

trigger is a mechanism where the payout to the investor is based on the

actual losses incurred by the insurer and come into play when losses

from a specified event exceed a designated level. Insurance-linked

instruments subject to indemnity triggers are often regarded as being

subject to potential moral hazard, since such insurance-linked

investments are triggered by actual losses of the ceding sponsor and the

ceding sponsor may have an incentive to take actions and/or risks that

would have an adverse effect on the Fund. There is no way to accurately

predict whether a trigger event will occur and, accordingly,

insurance-linked instruments and similar investments carry significant

risk. In addition to the specified trigger events, these types of

investments may expose the Fund to other risks, including but not

The aforementioned instruments may include longevity and mortality

investments, including indirect investment in pools of insurance-related

longevity and mortality investments, including life insurance policies,

annuity contracts and premium finance loans. Such investments are

subject to “longevity risk” and/or “mortality risk.” Longevity risk is the

risk that members of a reference population will live longer, on average,

than anticipated. Mortality risk is the risk that members of a reference

population will live shorter, on average, than anticipated. Changes in

these rates can significantly affect the liabilities and cash needs of life

insurers, annuity providers and pension funds. The terms of a longevity

bond typically provide that the investor in the bond will receive less than

the bond’s par amount at maturity if the actual average longevity (life

span) of a specified population of people observed over a specified

period of time (typically measured by a longevity index) is higher than a

specified level. If longevity is higher than expected, the bond will return

less than its par amount at maturity. A mortality bond, in contrast to a

longevity bond, typically provides that the investor in the bond will

receive less than the bond’s par amount at maturity if the mortality rate

of a specified population of people observed over a specified period of

time (typically measured by a mortality index) is higher than a specified

level.

During their term, both longevity bonds and mortality bonds typically

pay a floating rate of interest to investors. Longevity and mortality

investments purchased by the Fund involve the risk of incorrectly

predicting the actual level of longevity or mortality, as applicable, for the

reference population of people. With respect to mortality investments

held by the Fund, there is also the risk that an epidemic or other

catastrophic event could strike the reference population, resulting in

mortality rates exceeding expectations. The Fund may also gain this type

of exposure through event-linked derivative instruments, such as swaps,

that are contingent on or formulaically related to longevity or mortality

risk.

Financial entities, such as investment companies and investment

advisers, are generally subject to extensive government regulation and

intervention. Government regulation and/or intervention may change

the way the Fund is regulated, affect the expenses incurred directly by

the Fund and the value of its investments, and limit and /or preclude the

Fund’s ability to achieve its investment objective. Government

regulation may change frequently and may have significant adverse

consequences. The Fund and the Investment Manager have historically

been eligible for exemptions from certain regulations. However, there is

no assurance that the Fund and the Investment Manager will continue

to be eligible for such exemptions.

| Interval Funds

While there continues to be uncertainty about the full impact of these

and other regulatory changes, it is the case that the Fund will be subject

to a more complex regulatory framework, and may incur additional

costs to comply with new requirements as well as to monitor for

compliance in the future. Actions by governmental entities may also

impact certain instruments in which the Fund invests and reduce market

liquidity and resiliency.

The Fund has elected to be treated as a RIC under Subchapter M of the

Code and intends each year to qualify and be eligible to be treated as

such, so that it generally will not be subject to U.S. federal income tax

on its net investment income or net short-term or long-term capital

gains that are timely distributed (or deemed distributed, as described

below) to shareholders. In order to qualify and be eligible for such

treatment, the Fund must meet certain asset diversification tests, derive

at least 90% of its gross income for such year from certain types of

qualifying income, and distribute to its shareholders at least 90% of its

“investment company taxable income” as that term is defined in the

Code (which includes, among other things, dividends, taxable interest

and the excess of any net short-term capital gains over net long-term

capital losses, as reduced by certain deductible expenses) and net

tax-exempt income, for such year.

The Fund’s investment strategy will potentially be limited by its intention

to qualify for treatment as a RIC and can limit the Fund’s ability to

qualify as such. The tax treatment of certain of the Fund’s investments

under one or more of the qualification or distribution tests applicable to

RICs is uncertain. An adverse determination or future guidance by the

IRS or a change in law might affect the Fund's ability to qualify or be

eligible for treatment as a RIC. Income and gains from certain of the

Fund's activities may not constitute qualifying income to a RIC for

purposes of the 90% gross income test. If the Fund’s income or gain

from a particular investment or activity were determined to constitute

nonqualifying income, which in certain cases may be determined

retroactively, and the Fund's nonqualifying income from all sources

were to exceed 10% of its gross income in any taxable year, the Fund

would fail to qualify as a RIC unless it were eligible to and did pay a tax

at the Fund level. See “Taxation” in the Statement of Additional

Information for additional details.

If, in any year, the Fund were to fail to qualify for treatment as a RIC

under the Code and were ineligible to or did not otherwise cure such

failure, the Fund would be subject to tax on its taxable income at

corporate rates and, when such income is distributed, shareholders

would be subject to further tax on such distributions to the extent of the

Fund's current or accumulated earnings and profits.

The Investment Manager and its affiliates are involved worldwide with a

broad spectrum of financial services and asset management activities

and may engage in the ordinary course of business in activities in which

their interests or the interests of their clients may conflict with those of

the Fund. The Investment Manager may provide investment

management services to other funds and discretionary managed

accounts that follow an investment program similar to that of the Fund.

Subject to the requirements of the 1940 Act, the Investment Manager

intends to engage in such activities and may receive compensation from

third parties for its services. The results of the Fund’s investment

activities may differ from those of the Fund’s affiliates, or another

account managed by the Investment Manager or its affiliates, and it is

possible that the Fund could sustain losses during periods in which one

or more of the Fund’s affiliates and/or other accounts managed by the

Investment Manager or its affiliates, including proprietary accounts,

achieve profits on their trading.

The Fund may enter into repurchase agreements, in which the Fund

purchases a security from a bank or broker-dealer, which agrees to

repurchase the security at the Fund’s cost plus interest within a specified

time. Entering into repurchase agreements allows the Fund to earn a

return on cash in the Fund's portfolio that would otherwise remain

un-invested. Repurchase agreements may involve risks in the event of

default or insolvency of the counterparty, including possible delays or

restrictions upon the Fund's ability to sell the underlying securities and

additional expenses in seeking to enforce the Fund's rights and recover

any losses. Although the Fund seeks to limit the credit risk under a

repurchase agreement by carefully selecting counterparties and

accepting only high quality collateral, some credit risk remains. The

counterparty could default which may make it necessary for the Fund to

incur expenses to liquidate the collateral. The security subject to a

repurchase agreement may be or become illiquid. These events could

also trigger adverse tax consequences for the Fund.

The Fund’s distribution rates may be affected by numerous factors,

including but not limited to changes in realized and projected market

returns, fluctuations in market interest rates, Fund performance and

other factors. The Fund’s distributions may be comprised of a return of

capital. In general terms, a return of capital would occur where a Fund

October 31, 2025 (as supplemented January 6, 2026) |

  

The market prices of zero-coupon, step ups and payment-in-kind

securities are generally more volatile than the prices of securities that

pay interest periodically and in cash, and are likely to respond to

changes in interest rates to a greater degree than other types of debt

securities with similar maturities and credit quality. Because

zero-coupon securities bear no interest, their prices are especially

volatile and because zero-coupon bondholders do not receive interest

payments, the prices of zero-coupon securities generally fall more

dramatically than those of bonds that pay interest on a current basis

when interest rates rise. The market for zero-coupon and

payment-in-kind securities may suffer decreased liquidity. In addition, as

these securities may not pay cash interest, the Fund’s investment

exposure to these securities and their risks, including credit risk, will

increase during the time these securities are held in the Fund’s portfolio.

Further, to maintain its qualification for treatment as a RIC and to avoid

Fund-level U.S. federal income and/or excise taxes, the Fund is required

to distribute to its shareholders any income it is deemed to have

received in respect of such investments, notwithstanding that cash has

not been received currently, and the value of paid-in-kind interest.

Consequently, the Fund may have to dispose of portfolio securities

under disadvantageous circumstances to generate the cash, or may

have to leverage itself by borrowing the cash to satisfy this distribution

requirement.

The required distributions, if any, would result in an increase in the

Fund’s exposure to these securities. Zero coupon bonds, step-ups and

payment-in- kind securities allow an issuer to avoid or delay the need to

generate cash to meet current interest payments and, as a result, may

involve greater credit risk than bonds that pay interest currently or in

cash. The Fund would be required to distribute the income on these

instruments as it accrues, even though the Fund will not receive the

income on a current basis or in cash. Thus, the Fund may sell other

investments, including when it may not be advisable to do so, to make

income distributions to its shareholders.

The Fund may invest in risk retention tranches of CMBS or other eligible

securitizations, if any (“risk retention tranches”), which are eligible

residual interests typically held by the sponsors of such securitizations

pursuant to the final rules implementing the credit risk retention

requirements of Section 941 of the Dodd-Frank Act (the “U.S. Risk

Retention Rules”). In the case of CMBS transactions, for example, the

U.S. Risk Retention Rules permit all or a portion of the retained credit

In addition, there is limited guidance on the application of the final

U.S. Risk Retention Rules to specific securitization structures. There can

be no assurance that the applicable federal agencies charged with the

implementation of the final U.S. Risk Retention Rules (the Federal

Deposit Insurance Corporation, the Comptroller of the Currency, the

Federal Reserve Board, the SEC, the Department of Housing and Urban

Development, and the Federal Housing Finance Agency) could not take

positions in the future that differ from the interpretation of such rules

taken or embodied in such securitizations, or that the final U.S. Risk

Retention Rules will not change.

Furthermore, in situations where the Fund invests in risk retention

tranches of securitizations structured by third parties, the Fund may be

required to execute one or more letters or other agreements, the exact

form and nature of which will vary (each, a “Risk Retention

Agreement”) under which it will make certain undertakings designed to

ensure such securitization complies with the final U.S. Risk Retention

Rules. Such Risk Retention Agreements may include a variety of

representations, warranties, covenants and other indemnities, each of

which may run to various transaction parties. If the Fund breaches any

undertakings in any Risk Retention Agreement, it will be exposed to

claims by the other parties thereto, including for any losses incurred as a

result of such breach, which could be significant and exceed the value of

the Fund's investments.

To the extent the Fund invests through one or more of its Subsidiaries,

the Fund would be exposed to the risks associated with such

Subsidiary’s investments. Such Subsidiaries would likely not be

registered as investment companies under the 1940 Act and therefore

would not be subject to all of the investor protections of the 1940 Act.

Changes in the laws of the United States and/or the jurisdiction in

which a Subsidiary is organized could result in the inability of the Fund

and/or the Subsidiary to operate as intended and could adversely affect

the Fund.

The Investment Manager manages the Fund without regard generally to

restrictions on portfolio turnover. The use of futures contracts and other

derivative instruments with relatively short maturities may tend to

exaggerate the portfolio turnover rate for the Fund. Trading in fixed

income securities does not generally involve the payment of brokerage

commissions, but does involve indirect transaction costs. The use of

| Interval Funds

An investment in the Fund, like any fund, can involve operational risks

arising from factors such as processing errors, human errors, inadequate

or failed internal or external processes, failures in systems and

technology, changes in personnel and errors caused by third-party

service providers. The occurrence of any of these failures, errors or

breaches could result in a loss of information, regulatory scrutiny,

reputational damage or other events, any of which could have a

material adverse effect on the Fund. While the Fund seeks to minimize

such events through controls and oversight, there may still be failures

that could cause losses to the Fund.

The Fund is subject to investment and operational risks associated with

financial, economic and other global market developments and

disruptions, including those arising from war, military conflicts,

geopolitical disputes, terrorism, social or political unrest, recessions,

supply chain disruptions, tariffs and other restrictions on trade,

sanctions, market manipulation, government interventions, defaults and

shutdowns, political changes or diplomatic developments, public health

emergencies (such as the spread of infectious diseases, pandemics and

epidemics), bank failures, natural/environmental disasters, climate

change and climate related events, which can all negatively impact the

securities markets, interest rates, auctions, secondary trading, ratings,

credit risk, inflation, deflation and other factors relating to the Fund’s

investments or the Investment Manager’s operations and the value of

an investment in the Fund, its distributions and its returns. These events

can also impair the technology and other operational systems upon

which the Fund’s service providers, including PIMCO as the Fund’s

investment adviser, rely, and could otherwise disrupt the Fund’s service

providers’ ability to fulfill their obligations to the Fund. Furthermore,

events involving limited liquidity, defaults, non-performance or other

adverse developments that affect financial institutions or the financial

services industry generally, or concerns or rumors about any events of

these kinds or other similar risks, have in the past and may in the future

lead to market-wide liquidity problems.

Cyber Security Risk

As the use of technology, including cloud-based technology, has

become more prevalent and interconnected in the course of business,

the Fund is potentially more susceptible to operational and information

security risks resulting from breaches in cyber security, including:

processing and human errors, inadequate or failed internal or external

processes, failures in system and technology, errors in algorithms used

with respect to Fund operations and changes in personnel. A breach in

cyber security refers to both intentional and unintentional cyber events

from outside threat actors or internal resources that may, among other

things, cause the Fund to lose proprietary information, suffer data

corruption and/or destruction, lose operational capacity, result in the

unauthorized release or other misuse of confidential information, or

otherwise disrupt normal business operations. Geopolitical tensions can

increase the scale and sophistication of deliberate cybersecurity attacks,

particularly those from nation-states or from entities with nation-state

backing, who may desire to use cybersecurity attacks to cause damage

or create leverage against geopolitical rivals. Cyber security breaches

may involve unauthorized access to the Fund’s digital information

systems (e.g., through “hacking” or malicious software coding), and

may come from multiple sources, including outside attacks such as

denial-of-service attacks (i.e., efforts to make network services

unavailable to intended users) or cyber extortion, including exfiltration

of data held for ransom and/or “ransomware” attacks that renders

systems inoperable until the ransom is paid, or insider actions (e.g.,

intentionally or unintentionally harmful acts of PIMCO personnel). In

addition, cyber security breaches involving the Fund’s third party service

providers (including but not limited to advisers, sub-advisers,

administrators, transfer agents, custodians, vendors, suppliers,

distributors and other third parties), trading counterparties or issuers in

which the Fund invests can also subject the Fund to many of the same

risks associated with direct cyber security breaches or extortion of

company data. PIMCO’s use of cloud-based service providers could

heighten or change these risks. In addition, work-from-home

arrangements by the Fund, the Investment Manager or their service

providers could increase all of the above risks, create additional data

and information accessibility concerns, and make the Fund, the

Investment Manager or their service providers susceptible to operational

disruptions, any of which could adversely impact their operations.

Cyber security failures or breaches may result in financial losses to the

Fund and its shareholders. For example, cyber security failures or

breaches involving trading counterparties or issuers in which the Fund

invests could adversely impact such counterparties or issuers and cause

the Fund’s investment to lose value. These failures or breaches may also

result in disruptions to business operations, potentially resulting in

financial losses; interference with the Fund’s ability to calculate its NAV,

process shareholder transactions or otherwise transact business with

shareholders; impediments to trading; violations of applicable privacy

and other laws; regulatory fines; penalties; third-party claims in

litigation; reputational damage; reimbursement or other compensation

costs; additional compliance and cyber security risk management costs

and other adverse consequences. In addition, substantial costs may be

incurred in order to prevent any cyber incidents in the future.

October 31, 2025 (as supplemented January 6, 2026) |

  

The Fund is “non-diversified,” which means that the Fund may invest a

significant portion of its assets in the securities of a smaller number of

issuers than a diversified fund. Focusing investments in a small number

of issuers increases risk. A fund that invests in a relatively smaller

number of issuers is more susceptible to risks associated with a single

economic, political or regulatory occurrence than a diversified fund

might be. Some of those issuers also may present substantial credit or

other risks. Similarly, the Fund may be subject to increased economic,

business or political risk to the extent that it invests a substantial

portion of its assets in a particular currency, in a group of related

industries, in a particular issuer, in the bonds of similar projects or in a

narrowly defined geographic area outside the U.S. Notwithstanding the

Fund’s status as a “non-diversified” investment company under the

1940 Act, the Fund intends to qualify as a regulated investment

company accorded special tax treatment under the Code, which

imposes its own diversification requirements.

The Fund’s short sales and short positions, if any, are subject to special

risks. A short sale involves the sale by the Fund of a security that it does

not own with the hope of purchasing the same security at a later date at

a lower price. The Fund may also enter into a short position through a

forward commitment or a short derivative position through a futures

contract or swap agreement. If the price of the security or derivative has

increased during this time, then the Fund will incur a loss equal to the

increase in price from the time that the short sale was entered into plus

any transaction costs (i.e., premiums and interest) paid to the

broker-dealer to borrow securities. Therefore, short sales involve the risk

that losses may be exaggerated, potentially losing more money than the

actual cost of the investment. By contrast, a loss on a long position

arises from decreases in the value of the security and is limited by the

fact that a security’s value cannot decrease below zero. By investing the

proceeds received from selling securities short, the Fund could be

deemed to be employing a form of leverage, which creates special risks.

In times of unusual or adverse market, economic, regulatory,

environmental or political conditions, the Fund may not be able, fully or

partially, to implement its short selling strategy. Periods of unusual or

adverse market, economic, environmental, regulatory or political

conditions generally may exist for long periods of time. In response to

market events, the SEC and regulatory authorities in other jurisdictions

may adopt (and in certain cases, have adopted) bans on, and/or

reporting requirements for, short sales of certain securities, including

short positions on such securities acquired through swaps. Restrictions

on and/or reporting of short selling and short positions may negatively

impact and materially impair the Fund's ability to execute certain

transactions. Also, there is the risk that the third party to the short sale

or short position will not fulfill its contractual obligations, causing a loss

to the Fund.

Certain broker-dealers may be considered to be affiliated persons of the

Fund and/or the Investment Manager due to their possible affiliations

with Allianz SE, the ultimate parent of the Investment Manager, or

another Allianz entity. Allianz Asset Management of America LP merged

with Allianz Asset Management of America LLC (“Allianz Asset

Management”), with the latter being the surviving entity, effective

January 1, 2023. Following the merger, Allianz Asset Management is

PIMCO’s managing member and direct parent entity. Absent an

exemption from the SEC or other regulatory relief, the Fund is generally

precluded from effecting certain principal transactions with affiliated

brokers, and its ability to purchase securities being underwritten by an

affiliated broker or a syndicate including an affiliated broker, or to utilize

affiliated brokers for agency transactions, is subject to restrictions. This

could limit the Fund’s ability to engage in securities transactions and

take advantage of market opportunities.

The 1940 Act imposes significant limits on co-investment with affiliates

of the Fund. The Fund has received exemptive relief from the SEC that,

to the extent the Fund relies on such relief, permits it to (among other

things) co-invest alongside certain other persons in privately negotiated

investments, including certain affiliates of the Investment Manager and

certain public or private funds managed by the Investment Manager and

its affiliates, subject to certain terms and conditions. The exemptive relief

from the SEC with respect to co-investments imposes a number of

conditions on any co-investments made in reliance on such relief that

may limit or restrict the Fund’s ability to participate in an investment or

require it to participate in an investment to a lesser extent, which could

negatively impact the Fund’s ability to execute its desired investment

strategy and its returns. Subject to applicable law, the Fund may also

invest alongside other PIMCO managed funds and accounts, including

private funds and affiliates of the Investment Manager, without relying

on the exemptive relief. Pursuant to co-investment exemptive relief, to

the extent the Fund relies on such relief, the Fund will be able to invest

| Interval Funds

The Fund’s Amended and Restated Agreement and Declaration of Trust,

includes provisions that could limit the ability of other entities or

persons to acquire control of the Fund or to convert the Fund to

open-end status. See “Anti-Takeover and Other Provisions in the

Declaration of Trust and Bylaws.”

October 31, 2025 (as supplemented January 6, 2026) |

  

of Fund