-- Deep investment experience and world-class portfolio management
-- A sophisticated approach to constructing desired market and portfolio
exposures
-- Strong risk management at both the security level and the portfolio
level
-- Exceptional trade execution capabilities
TUZ: A Portfolio Building Block Covering the "Two's" Bellwether Rate
PIMCO's first ETF offering, with the ticker symbol TUZ, is designed to
track the Merrill Lynch 1-3 Year U.S. Treasury Index(1). This fund
primarily invests in U.S. Treasury Securities, which are backed by the full
faith and credit of the U.S. government. With maturities ranging from one
to three years, price fluctuations may be low relative to longer-dated
bonds, yet yields may be generally higher than shorter-term instruments
such as Treasury bills or government money market funds.
More information on PIMCO's ETF business, along with data on the PIMCO 1-3
Year U.S. Treasury Index Fund, can be found at www.pimcoetfs.com.
About PIMCO
PIMCO, founded in 1971, is a global asset management firm that manages
investments for an array of clients, including retirement and other assets
that reach more than 8 million people in the U.S. and millions more around
the world. Our clients include state, municipal and union pension and
retirement plans whose beneficiaries come from all walks of life, from
educators to healthcare workers to public safety employees. We have a
substantial individual investor client base, and work in partnership with
financial intermediaries such as Registered Investment Advisors,
broker/dealers, trust banks and insurance companies. We are also advisors
and asset managers to central banks, corporations, universities,
foundations and endowments. With offices in North America, Europe, Asia and
Australia, we manage investments across a full spectrum of global financial
markets. PIMCO is owned by Allianz Global Investors, a subsidiary of the
Munich-based Allianz Group, a leading global insurance company.
Investors should consider the investment objectives, risks, charges and
expenses of the funds carefully before investing. This and other
information are contained in the fund's prospectus, which may be obtained
by contacting your PIMCO representative. Please read the prospectus
carefully before you invest or send money.
Shares of the Fund are not individually redeemable and may only be acquired
from and redeemed to the Fund in Creation Units. Investors may buy or sell
individual shares in secondary market transactions that do not involve the
ETF. Shares of the Funds are bought and sold at market price (not NAV).
Brokerage commissions will reduce returns. Investment policies, management
fees and other information can be found in the individual ETF's prospectus.
An investment in an ETF involves risk, including the loss of principal.
Investment return, price, yield, and NAV will fluctuate with changes in
market conditions. Investments may be worth more or less than the original
cost when redeemed. U.S. Government securities are backed by the full faith
of the government; portfolios that invest in them are not guaranteed and
will fluctuate in value. Currency rates may fluctuate significantly over
short periods of time and may reduce the returns of a portfolio.
Derivatives may involve certain costs and risks such as liquidity, interest
rate, market, credit, management and the risk that a position could not be
closed when most advantageous. Investing in derivatives could lose more
than the amount invested.
The value of most bond funds and fixed income securities are impacted by
changes in interest rates. Bonds and bond funds with longer durations tend
to be more sensitive and more volatile than securities with shorter
durations; bond prices generally fall as interest rates rise.
The Merrill Lynch 1-3 Year BBB Corporate Index is an unmanaged index
trading short-term domestic corporate bonds comprised of various fixed
income securities rated BB and B with maturities between 1 and 2.99 years.
It is not possible to invest directly in an unmanaged index.
(1) "Merrill Lynch" and "Merrill Lynch 1-3 Year U.S. Treasury Index(SM)"
are reprinted with permission. © Copyright 2009 Merrill Lynch, Pierce,
Fenner & Smith Incorporated ("Merrill Lynch"). All rights reserved.
"Merrill Lynch" and "Merrill Lynch 1-3 Year U.S. Treasury Index(SM)" are
service marks of Merrill Lynch and have been licensed for use for certain
purposes by the PIMCO 1-3 Year U.S. Treasury Index Fund that is based on
the Merrill Lynch 1-3 Year U.S. Treasury Index(SM), and is not sponsored,
endorsed or promoted by Merrill Lynch and/or Merrill Lynch's affiliates nor
is Merrill Lynch and/ or Merrill Lynch's affiliates an adviser to the PIMCO
1-3 Year U.S. Treasury Index Fund. Merrill Lynch and Merrill Lynch's
affiliates make no representation, express or implied, regarding the
advisability of investing in this product or the Index and do not guarantee
the quality, accuracy or completeness of the Index, Index Values or any
Index related data included herein, provided herewith or derived therefrom
and assume no liability in connection with their use. As the Index
Provider, Merrill Lynch is licensing certain trademarks, the underlying
Index and trade names which are composed by Merrill Lynch without regard to
PIMCO, this product or any investor. Merrill Lynch and Merrill Lynch's
affiliates do not provide investment advice to the PIMCO 1-3 Year U.S.
Treasury Index Fund and are not responsible for the performance of the
PIMCO 1-3 Year U.S. Treasury Index Fund.
Except for the historical information and discussions contained herein,
statements contained in this news release constitute forward-looking
statements within the meaning of the Private Securities Litigation Reform
Act of 1995. These statements may involve a number of risks, uncertainties
and other factors that could cause actual results to differ materially,
including the performance of financial markets, the investment performance
of PIMCO's sponsored investment products and separately managed accounts,
general economic conditions, future acquisitions, competitive conditions
and government regulations, including changes in tax laws. Readers should
carefully consider such factors. Further, such forward-looking statements
speak only on the date at which such statements are made. PIMCO undertakes
no obligation to update any forward-looking statements to reflect events or
circumstances after the date of such statements.
The press release has been distributed for informational purposes only and
should not be considered as investment advice or a recommendation of any
particular security, strategy or investment product. Pacific Investment
Management Company LLC. ©2009, PIMCO.
PIMCO securities are offered by Allianz Global Investors Distributors LLC,
840 Newport Center Drive, Newport Beach, CA 92660, (800) 927-4648.
Contact Information: Contact: Steven Vames PIMCO - Media Relations 212-739-3598