EX-99.77D POLICIES 4 77D_PIMCO_SUPP1_012218.txt INVESTMENT STRATEGIES PIMCO Funds Effective January 22, 2018 Supplement dated December 22, 2017 to the Credit Bond Funds Prospectus dated July 28, 2017, as supplemented from time to time (the Prospectus) Disclosure Related to the PIMCO Income Fund and PIMCO Low Duration Income Fund PIMCO Income Fund The Fund may invest up to 50% of its total assets in high yield securities rated below investment grade by Moodys Investors Service, Inc. (Moodys), Standard & Poors Ratings Services (S&P) or Fitch, Inc. (Fitch), or if unrated, as determined by PIMCO (except such 50% limitation shall not apply to the Funds investments in mortgage and assetbacked securities). PIMCO Low Duration Income Fund The Fund may invest up to 30% of its total assets in high yield securities rated below investment grade by Moodys Investors Service, Inc. (Moodys), Standard & Poors Ratings Services (S&P) or Fitch, Inc. (Fitch), or if unrated, as determined by PIMCO (except such 30% limitation shall not apply to the Funds investments in mortgage and assetbacked securities). Supplement dated December 22, 2017 to the Bond Funds Prospectus dated July 28, 2017, as supplemented from time to time (the Prospectus) Disclosure Related to the PIMCO Investment Grade Corporate Bond Fund, PIMCO Long Duration Total Return Fund, PIMCO Moderate Duration Fund, PIMCO Mortgage Opportunities Fund, PIMCO Total Return Fund and PIMCO Total Return ESG Fund PIMCO Investment Grade Corporate Bond Fund The Fund invests primarily in investment grade debt securities, but may invest up to 15% of its total assets in high yield securities (junk bonds), as rated by Moodys Investors Service, Inc. (Moodys), Standard & Poors Ratings Services (S&P) or Fitch, Inc. (Fitch), or, if unrated, as determined by PIMCO. PIMCO Long Duration Total Return Fund The Fund invests primarily in investment grade debt securities, but may invest up to 10% of its total assets in high yield securities (junk bonds), as rated by Moodys Investors Service, Inc. (Moodys), Standard & Poors Ratings Services (S&P) or Fitch, Inc. (Fitch), or, if unrated, as determined by PIMCO. PIMCO Moderate Duration Fund The Fund invests primarily in investment grade debt securities, but may invest up to 10% of its total assets in high yield securities (junk bonds), as rated by Moodys Investors Service, Inc. (Moodys), Standard & Poors Ratings Services (S&P) or Fitch, Inc. (Fitch), or, if unrated, as determined by PIMCO. PIMCO Mortgage Opportunities Fund The Fund may invest up to 50% of its total assets in high yield securities (junk bonds), as rated by Moodys Investors Service, Inc. (Moodys), Standard & Poors Rating Services (S&P) or Fitch, Inc. (Fitch), or, if unrated, as determined by PIMCO (except such limitation shall not apply to the Funds investments in mortgage related securities). PIMCO Total Return Fund The Fund invests primarily in investmentgrade debt securities, but may invest up to 20% of its total assets in high yield securities (junk bonds), as rated by Moodys Investors Service, Inc. (Moodys), Standard & Poors Ratings Services (S&P) or Fitch, Inc. (Fitch), or, if unrated, as determined by PIMCO. PIMCO Total Return ESG Fund The Fund invests primarily in investment grade securities, but may invest up to 20% of its total assets in high yield securities (junk bonds), as rated by Moodys Investors Service, Inc. (Moodys), Standard & Poors Ratings Services (S&P) or Fitch, Inc. (Fitch), or, if unrated, as determined by PIMCO Supplement dated December 22, 2017 to the International Bond Funds Prospectus dated July 28, 2017, as supplemented from time to time (the Prospectus) Disclosure related to the PIMCO Foreign Bond Fund (U.S. DollarHedged), PIMCO Foreign Bond Fund (Unhedged), PIMCO Global Bond Fund (U.S. DollarHedged) and PIMCO Global Bond Fund (Unhedged) PIMCO Foreign Bond Fund (U.S. DollarHedged) The Fund invests primarily in investment grade debt securities, but may invest up to 10% of its total assets in high yield securities (junk bonds), as rated by Moodys Investors Service, Inc. (Moodys), Standard & Poors Ratings Services (S&P) or Fitch, Inc. (Fitch), or, if unrated, as determined by PIMCO. PIMCO Foreign Bond Fund (Unhedged) The Fund invests primarily in investment grade debt securities, but may invest up to 10% of its total assets in high yield securities (junk bonds), as rated by Moodys Investors Service, Inc. (Moodys), Standard & Poors Ratings Services (S&P) or Fitch, Inc. (Fitch), or, if unrated, as determined by PIMCO. PIMCO Global Bond Fund (U.S. DollarHedged) The Fund invests primarily in investment grade debt securities, but may invest up to 20% of its total assets in high yield securities (junk bonds), as rated by Moodys Investors Service, Inc. (Moodys), Standard & Poors Ratings Services (S&P) or Fitch, Inc. (Fitch), or, if unrated, as determined by PIMCO. PIMCO Global Bond Fund (Unhedged) The Fund invests primarily in investment grade securities, but may invest up to 20% of its total assets in high yield securities (junk bonds), as rated by Moodys Investors Service, Inc. (Moodys), Standard & Poors Ratings Services (S&P) or Fitch, Inc. (Fitch), or, if unrated, as determined by PIMCO. Supplement dated December 22, 2017 to the Short Duration Strategy Funds Prospectus dated July 28, 2017, as supplemented from time to time (the Prospectus) Disclosure Related to the PIMCO Low Duration Fund and PIMCO Low Duration ESG Fund PIMCO Low Duration Fund Principal Investment Strategies The Fund invests primarily in investment grade debt securities, but may invest up to 10% of its total assets in high yield securities (junk bonds), as rated by Moodys Investors Service, Inc. (Moodys), Standard & Poors Ratings Services (S&P) or Fitch, Inc. (Fitch), or, if unrated, as determined by PIMCO. PIMCO Low Duration ESG Fund Principal Investment Strategies The Fund invests primarily in investment grade securities, but may invest up to 10% of its total assets in high yield securities (junk bonds), as rated by Moodys Investors Service, Inc. (Moodys), Standard & Poors Ratings Services (S&P) or Fitch, Inc. (Fitch), or, if unrated, as determined by PIMCO. Supplement dated December 22, 2017 to the TaxEfficient Strategy Funds Prospectus dated July 28, 2017, as supplemented from time to time (the Prospectus) Disclosure Related to the PIMCO California Intermediate Municipal Bond Fund, PIMCO California Municipal Bond Fund, PIMCO Municipal Bond Fund, PIMCO National Intermediate Municipal Bond Fund and PIMCO New York Municipal Bond Fund PIMCO California Intermediate Municipal Bond Fund Principal Investment Strategies The Fund invests primarily in investment grade debt securities, but may invest up to 10% of its total assets in high yield securities (junk bonds), as rated by Moodys Investors Service, Inc. (Moodys), Standard & Poors Ratings Services (S&P) or Fitch, Inc. (Fitch), or, if unrated, as determined by PIMCO. PIMCO California Municipal Bond Fund Principal Investment Strategies The Fund invests primarily in investment grade debt securities, but may invest up to 20% of its total assets in high yield securities (junk bonds), as rated by Moodys Investors Service, Inc. (Moodys), Standard & Poors Ratings Services (S&P) or Fitch, Inc. (Fitch), or, if unrated, as determined by Pacific Investment Management Company LLC (PIMCO). PIMCO Municipal Bond Fund Principal Investment Strategies The Fund invests primarily in investment grade debt securities, but may invest up to 20% of its total assets in high yield securities (junk bonds), as rated by Moodys Investors Service, Inc. (Moodys), Standard & Poors Ratings Services (S&P) or Fitch, Inc. (Fitch), or, if unrated, as determined by Pacific Investment Management Company LLC (PIMCO). PIMCO National Intermediate Municipal Bond Fund Principal Investment Strategies The Fund invests primarily in investment grade debt securities, but may invest up to 10% of its total assets in Municipal Bonds or private activity bonds which are high yield securities (junk bonds), as rated by Moodys Investors Service, Inc. (Moodys), Standard & Poors Ratings Services (S&P) or Fitch, Inc. (Fitch), or, if unrated, as determined by PIMCO. PIMCO New York Municipal Bond Fund Principal Investment Strategies The Fund invests primarily in investment grade debt securities, but may invest up to 20% of its total assets in high yield securities (junk bonds), as rated by Moodys Investors Service, Inc. (Moodys), Standard & Poors Ratings Services (S&P) or Fitch, Inc. (Fitch), or, if unrated, as determined by PIMCO. Supplement dated December 22, 2017 to the EquityRelated Strategy Funds Prospectus dated July 28, 2017, as supplemented from time to time (the Prospectus) Disclosure Related to the PIMCO RAE Fundamental Advantage PLUS Fund, PIMCO RAE Fundamental PLUS EMG Fund, PIMCO RAE Fundamental PLUS Fund, PIMCO RAE Fundamental PLUS International Fund, PIMCO RAE Fundamental PLUS Small Fund, PIMCO RAE Low Volatility PLUS EMG Fund, PIMCO RAE Low Volatility PLUS Fund, PIMCO RAE Low Volatility PLUS International Fund and PIMCO RAE Worldwide Long/Short PLUS Fund PIMCO RAE Fundamental Advantage PLUS Fund, PIMCO RAE Fundamental PLUS EMG Fund, PIMCO RAE Fundamental PLUS Fund, PIMCO RAE Fundamental PLUS International Fund, PIMCO RAE Fundamental PLUS Small Fund, PIMCO RAE Low Volatility PLUS EMG Fund, PIMCO RAE Low Volatility PLUS Fund and PIMCO RAE Low Volatility PLUS International Fund Principal Investment Strategies The Fund may invest up to 20% of its total assets in high yield securities (junk bonds), as rated by Moodys Investors Service, Inc. (Moodys), Standard & Poors Ratings Services (S&P) or Fitch, Inc. (Fitch), or, if unrated, as determined by PIMCO. PIMCO RAE Worldwide Long/Short PLUS Fund Principal Investment Strategies The Fund may invest up to 20% of its total assets in high yield securities (junk bonds), as rated by Moodys Investors Service, Inc. (Moodys), Standard & Poors Ratings Services (S&P) or Fitch, Inc. (Fitch), or, if unrated, as determined by PIMCO. Supplement dated December 22, 2017 to the Real Return Strategy Funds Prospectus dated July 28, 2017, as supplemented from time to time (the Prospectus) Disclosure Related to the PIMCO CommoditiesPLUS Strategy Fund, PIMCO CommodityRealReturn Strategy Fund and PIMCO RealEstateRealReturn Strategy Fund PIMCO CommoditiesPLUS Strategy Fund Principal Investment Strategies The Fund may invest up to 10% of its total assets in high yield securities (junk bonds), as rated by Moodys Investors Service, Inc. (Moodys), Standard & Poors Ratings Services (S&P) or Fitch, Inc. (Fitch), or, if unrated, as determined by PIMCO. PIMCO CommodityRealReturn Strategy Fund Principal Investment Strategies The Fund may invest up to 10% of its total assets in high yield securities (junk bonds), as rated by Moodys Investors Service, Inc. (Moodys), Standard & Poors Ratings Services (S&P) or Fitch, Inc. (Fitch), or, if unrated, as determined by PIMCO. PIMCO RealEstateRealReturn Strategy Fund Principal Investment Strategies The Fund may invest up to 10% of its total assets in high yield securities (junk bonds), as rated by Moodys Investors Service, Inc. (Moodys), Standard & Poors Ratings Services (S&P) or Fitch, Inc. (Fitch), or, if unrated, as determined by PIMCO.