PIMCO EqS Pathfnder Fund

A deep value stock fund

with global reach
In a rapidly and fundamentally changing global investment
landscape, investors are looking for managers with the
capabilities and know-how to target strong long-term returns
while also managing risks. PIMCO EqS Pathfinder Fund employs a
time-tested, deep value strategy that targets capital appreciation
of undervalued securities while also emphasizing downside
protection. The fund focuses on bottom-up fundamental security
analysis and stock selection, as well as opportunistic investments
in merger arbitrage and special situations. PIMCOs time-tested
economic and credit research capabilities and global investment
platform provide a solid framework for evaluating the best
opportunities across the full spectrum of economies, industries
and companies around the world.
What is the funds strategy?
PIMCO EqS Pathnder Fund is a global deep value equity fund that focuses on
stocks trading at signicant discounts to their intrinsic value in essence, it looks
for securities trading for 60 cents that the managers believe are actually worth a
dollar. The managers apply their skill at fundamental bottom-up security analysis
to help them identify these mispriced securities, with the goal of outperforming
broad global equity markets over the long term with lower volatility.
How is the fund different from other value funds?
The fund is unique in the manner in which it seeks capital appreciation while
emphasizing downside protection. Its risk-averse nature seeks to provide
outperformance across full market cycles, but it may demonstrate especially
strong relative performance during poor equity market environments. As a
result, the fund may offer a more attractive risk/return prole over the long
term than other value-oriented strategies and its benchmark index.
Fund Overview
Portfolio manager
Anne Guden, CFA
Executive Vice President
Portfolio Manager
Your Global Investment Authority
02 PIMCO EQS PATHFINDER FUND | FUND OVERVIEW
Another way the fund is different is that its exible,
unconstrained approach allows it to opportunistically invest
in merger arbitrage and corporate capital restructurings,
and tactically utilize currency and market hedges.
The funds manager has extensive experience with this
approach, but its important to note that the desired level
of downside protection may not always be achieved.
How does the fund determine intrinsic value?
The funds analysts are given the freedom and responsibility
to propose their highest-conviction ideas to the portfolio
manager, based on the analysts fundamental research and
expertise. To determine intrinsic value, they evaluate company
fundamentals, nancial statements, capital structure, industry
trends, competitors and suppliers. They consult their extensive
network of industry contacts and visit companies worldwide
to engage face-to-face with senior management and get
a rst-hand view of operations. Their process is also
complemented by PIMCOs extensive credit research and
macro forecasting, which may provide helpful insights
when evaluating investments.
What does the fund look for in a deep value
target company?
Companies selected for purchase are likely to display one
or more favorable characteristics:
Price: Stocks trading at steeply discounted prices to their
intrinsic values
Company business characteristics: A sustainable
competitive advantage, strong earnings power and
good free cash ow production; the fund may also
uncover hidden assets that the market ignores
Management criteria: A history of serial value creation
and shareholder-friendly capital management
Triggers: Perceived events that can unlock the value in
a mispriced stock, such as a new management team or
the restructuring of an inefcient business mix
What are the funds buy and sell signals?
The fund will typically invest in companies that match
the favorable characteristics just described, and when their
share prices reach a discount target of 30% to 40% of their
intrinsic value. The fund will then typically sell those securities
when their prices approach our estimates of their intrinsic
value. The manager anticipates three- to ve-year investment
horizons for typical deep value equity positions.
What other opportunities does the fund pursue?
The manager takes a exible approach that can opportunistically
incorporate other alternative investments.
Merger arbitrage seeks to generate equity-like returns with
less volatility and relatively low correlation to the overall
market. For certain announced merger and acquisition deals,
the fund may seek to capture the spread between the current
price of the target company and the ultimate takeover price
upon acquisition. Investments in companies engaged in
mergers, reorganizations or liquidations may involve unique
risks, as pending deals may not be completed on time or on
favorable terms, but they are typically more isolated from
broad market risks.
Investments in corporate capital restructurings target
equity-like returns via purchases of securities across the
capital structure with meaningful collateral backing.
Investing in distressed companies is subject to credit, issuer
and liquidity risks, and the repayment of default obligations
contains signicant uncertainties. Such companies may be
engaged in restructurings or bankruptcy proceedings, which
is why in-depth fundamental analysis with unique insights
are critical.
When appropriate, the fund can also pursue other selective
and defensive tactical hedging strategies for example,
currency or market risk that draw upon PIMCOs depth
and market expertise.
How else is the fund exible?
The funds active, unconstrained approach is benchmark
agnostic, providing the exibility to target returns and
manage risks in any market environment. The fund has
investment exibility in its choice of geographical regions,
sectors, investment vehicles, cash levels, market capitalization
sizes, positions in the capital structure and other areas.
What role can the fund play in an investors portfolio?
The fund can be a solid long-term core equity holding thanks
to its long-term investment in deep value stocks, its ability to
opportunistically participate in other tactical investments, its
focus on downside protection and its high degree of investment
exibility. Of course, the way the fund ts into an investors
broader portfolio is ultimately a reection of that investors
individual circumstances.
FUND OVERVIEW | PIMCO EQS PATHFINDER FUND 03
Who manages the fund?
The fund is managed by Anne Guden, CFA a recognized global value
expert with 23 years of investment experience. Prior to joining PIMCO, Ms.
Guden was a senior vice president, portfolio manager and research analyst at
Franklin Templeton Investments, and was a co-portfolio manager for the
Franklin Mutual Global Discovery Fund from 20052009. In total, Ms. Guden
helped oversee more than $25 billion in investment assets. Earlier in her career,
she was a research analyst covering European equities at Perry Capital. In July
2009, Ms. Guden was named as one of The Worlds Greatest Investors by
SmartMoney Magazine.
How does PIMCO add value to the funds management team?
The managers well-established deep value approach focuses on bottom-up
fundamental security analysis and stock selection that is complemented by
PIMCOs global economic views, exceptional credit research process, global
platform and risk management expertise. The funds managers also draw on
other advantages of our global platform, including deep resources in cash and
currency management, highly evolved proprietary analytical tools, policy
research and operational execution. In addition, PIMCOs size and reach in the
marketplace may offer unique trading opportunities and access to top-level
company management.
QUI CK FACTS
Objective
Seeks capital appreciation
Primary portfolio
Equity securities, including
common and preferred stock,
of issuers that the managers
believe are undervalued
Fund inception
14 April 2010
Dividend frequency
Annually
Portfolio manager
Anne Guden
Symbols
A shares PATHX
C shares PTHCX
D shares PTHDX
P shares PTHPX
R shares PTHRX
Inst. shares PTHWX
HI GHLI GHTS
A deep value approach with a
focus on downside protection

The flexibility to pursue

opportunistic merger arbitrage
and corporate capital restructuring
investments, and to select tactical
market and currency hedges

Managed by a recognized
global value expert and
seasoned analysts
SEEKING DISCOUNTS TO INTRINSIC VALUE
PIMCO EqS Pathfinder Fund seeks stocks that are priced well below our analysts estimates of
their intrinsic value. They target steep discounts, of at least 30%, to build a portfolio of stocks
that we believe provides investors attractive upside potential while minimizing downside risk.
S
t
o
c
k

p
r
i
c
e
Time
Intrinsic
value
Stock price > 30%
below intrinsic value
OVERVALUED
UNDERVALUED
Discount
to intrinsic
value
This chart is provided for illustrative purposes and is not indicative of the past or future
performance of any PIMCO product.
PO6015_35646
pimco.com/investments
Investors should consider the investment objectives, risks, charges and expenses of the funds
carefully before investing. This and other information are contained in the funds prospectus
and summary prospectus, if available, which may be obtained by contacting your investment
professional or PIMCO representative or by visiting pimco.com/investments. Please read them
carefully before you invest or send money.
A word about risk: Equities may decline in value due to both real and perceived general market, economic, and
industry conditions. Investments in value securities involve the risk the markets value assessment may differ from the
managers and the performance of the securities may decline. Investing in securities of smaller companies tends to be
more volatile and less liquid than investing in securities of larger companies. Investing in distressed companies (both
debt and equity) is speculative and may be subject to greater levels of credit, issuer and liquidity risks, and the repayment
of default obligations contains significant uncertainties; such companies may be engaged in restructurings or bankruptcy
proceedings. Investing in foreign-denominated and/or -domiciled securities may involve heightened risk due to
currency fluctuations, and economic and political risks, which may be enhanced in emerging markets. Investments in
companies engaged in mergers, reorganizations, or liquidations may involve special risks as pending deals may
not be completed on time or on favorable terms. High-yield, lower-rated, securities involve greater risk than higher-
rated securities; portfolios that invest in them may be subject to greater levels of credit and liquidity risk than portfolios
that do not. 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. Diversification does not ensure against loss.
There is no guarantee that these investment strategies will work under all market conditions or are suitable for all investors
and each investor should evaluate their ability to invest long-term, especially during periods of downturn in the market.
This material 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. Information contained herein has
been obtained from sources believed to be reliable, but not guaranteed. No part of this material may be reproduced
in any form, or referred to in any other publication, without express written permission. PIMCO and YOUR GLOBAL
INVESTMENT AUTHORITY are trademarks or registered trademarks of Allianz Asset Management of America L.P.
and Pacific Investment Management Company LLC, respectively, in the United States and throughout the world.
2014 PIMCO
PIMCO Investments LLC, distributor, 1633 Broadway, New York, NY 10019, is a company of PIMCO.
What are some of the risks of investing?
This fund invests in undervalued securities, which may not increase in price as
anticipated, or may decline further in value. There are risks involved in international
investing, such as the effects of greater economic and political instability and
currency uctuations; emerging markets may involve enhanced levels of these risks.
Other risks also apply, which are outlined in the funds prospectus.
How does the fund seek to manage these risks?
The funds risk management philosophy focuses on mitigating downside
potential in all market environments. Risk management techniques include
thorough fundamental research, selective and defensive tactical hedging
of currency and other risks, a disciplined buy strategy focused on signicant
discount targets, and a strict sell strategy focused on securities intrinsic
value. We also apply a platform of proprietary analytical tools to monitor
the portfolios risk sensitivities and characteristics.
How can I learn more?
Ask your nancial advisor for more information, including a copy of the
prospectus. You can also visit our website at pimco.com/investments
or call us at 888.87.PIMCO.
About PIMCO
PIMCO is a leading global investment
management rm, with ofces in 12
countries throughout the Americas,
Europe and Asia. Founded in 1971,
PIMCO offers a wide range of
innovative strategies to help millions
of investors worldwide meet their
needs. Our goal is to provide attractive
returns while maintaining a strong
culture of risk management and
long-term discipline.