<SEC-DOCUMENT>0001193125-17-376751.txt : 20171222
<SEC-HEADER>0001193125-17-376751.hdr.sgml : 20171222
<ACCEPTANCE-DATETIME>20171221180500
ACCESSION NUMBER:		0001193125-17-376751
CONFORMED SUBMISSION TYPE:	486BPOS
PUBLIC DOCUMENT COUNT:		16
FILED AS OF DATE:		20171222
DATE AS OF CHANGE:		20171221
EFFECTIVENESS DATE:		20171222

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			PIMCO Dynamic Income Fund
		CENTRAL INDEX KEY:			0001510599
		IRS NUMBER:				274580758
		STATE OF INCORPORATION:			MA
		FISCAL YEAR END:			0630

	FILING VALUES:
		FORM TYPE:		486BPOS
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-215573
		FILM NUMBER:		171270490

	BUSINESS ADDRESS:	
		STREET 1:		1633 BROADWAY
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10019
		BUSINESS PHONE:		212-739-4000

	MAIL ADDRESS:	
		STREET 1:		1633 BROADWAY
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10019

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			PIMCO Dynamic Income Fund
		CENTRAL INDEX KEY:			0001510599
		IRS NUMBER:				274580758
		STATE OF INCORPORATION:			MA
		FISCAL YEAR END:			0630

	FILING VALUES:
		FORM TYPE:		486BPOS
		SEC ACT:		1940 Act
		SEC FILE NUMBER:	811-22673
		FILM NUMBER:		171270491

	BUSINESS ADDRESS:	
		STREET 1:		1633 BROADWAY
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10019
		BUSINESS PHONE:		212-739-4000

	MAIL ADDRESS:	
		STREET 1:		1633 BROADWAY
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10019
</SEC-HEADER>
<DOCUMENT>
<TYPE>486BPOS
<SEQUENCE>1
<FILENAME>d450385d486bpos.htm
<DESCRIPTION>PIMCO DYNAMIC INCOME FUND
<TEXT>
<HTML><HEAD>
<TITLE>PIMCO Dynamic Income Fund</TITLE>
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<h5 align="left"><a href="#toc">Table of Contents</a></h5>

 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">As filed with the Securities and Exchange Commission on December&nbsp;21, 2017 </P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P> <P STYLE="line-height:1.5pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.50pt solid #000000">&nbsp;</P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right">1933 Act File <FONT STYLE="white-space:nowrap">No.&nbsp;333-</FONT>
215573&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right">1940 Act File
<FONT STYLE="white-space:nowrap">No.&nbsp;811-</FONT> 22673&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </P>
<P STYLE="margin-top:16pt; margin-bottom:0pt; font-size:18pt; font-family:Times New Roman" ALIGN="center"><B>UNITED STATES </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:18pt; font-family:Times New Roman" ALIGN="center"><B>SECURITIES AND EXCHANGE COMMISSION </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>WASHINGTON, D.C. 20549 </B></P>
<P STYLE="margin-top:16pt; margin-bottom:0pt; font-size:18pt; font-family:Times New Roman" ALIGN="center"><B>FORM <FONT STYLE="white-space:nowrap">N-2</FONT> </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">(Check appropriate box or boxes) </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>[X]&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B><FONT STYLE="white-space:nowrap">[&nbsp;&nbsp;&nbsp;&nbsp;]&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pre-Effective</FONT> Amendment No. </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>[X]&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Post-Effective Amendment No.&nbsp;2 </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>and </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>[X]&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>[X]&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amendment No.&nbsp;9&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </B></P>
<P STYLE="margin-top:16pt; margin-bottom:0pt; font-size:18pt; font-family:Times New Roman" ALIGN="center"><B>PIMCO DYNAMIC INCOME FUND </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B><I>(Exact Name of Registrant as Specified in Charter) </I></B></P>
<P STYLE="margin-top:14pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>1633 Broadway </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>New York,
New York 10019 </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>(Address of Principal Executive Offices) </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>(Number, Street, City, State, Zip Code) </B></P>
<P STYLE="margin-top:14pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(844) <FONT STYLE="white-space:nowrap">337-4626</FONT> </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B><I>(Registrant&#146;s Telephone Number, including Area Code) </I></B></P>
<P STYLE="margin-top:14pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Joshua D. Ratner </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>c/o
Pacific Investment Management Company LLC </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>1633 Broadway </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>New York, New York 10019</B><B><I> </I></B><B> </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B><I>(Name and Address (Number, Street, City, State, Zip Code) of Agent for Service) </I></B></P>
<P STYLE="margin-top:20pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B><I>Copies of Communications to: </I></B></P>
<P STYLE="margin-top:14pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>David C. Sullivan, Esq. </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Ropes&nbsp;&amp; Gray LLP </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Prudential Tower, 800 Boylston Street </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Boston, Massachusetts 02199 </B></P>
<P STYLE="margin-top:14pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Approximate Date of Proposed Public Offering: </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>From time to time after the effective date of this Registration Statement. </B></P>
<P STYLE="margin-top:20pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify">If any securities being registered on this form will be offered on a delayed or continuous basis in reliance on Rule 415 under the Securities
Act of 1933, other than securities offered in connection with a dividend reinvestment plan, check the following box [X]. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Pursuant to Rule
486(b) under the Securities Act of 1933, as amended, this Post-Effective Amendment No.&nbsp;2 shall become effective immediately upon filing with the Securities and Exchange Commission pursuant to <FONT STYLE="white-space:nowrap">no-action</FONT>
relief granted to Registrant on December&nbsp;12, 2017. </P>

<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
<a name="chapter_1_4636"></A><br>
<img src="g450385pr4636img000.jpg"><br> <div style="position: relative;height:800px;width:100%;"> <div style="position: absolute;top:10px;width:100%;left:1%;height:100px;">
<table width="100%">
<tr>
<td colspan="2" width="26.38%"><br>
<img src="g450385pr4636img002.jpg"><br> </td>
<td width="68.83%"> <p style="padding-left:30px;"><FONT SIZE="6" face="Arial, Helvetica, sans-serif"> Base Prospectus </FONT></p> </td> </tr> </table> </div> <div style="position: absolute;top:101px;width:30%;left:1%;height:600px;">
<table width="100%">
<tr>
<td width="100%"> <p style="padding:0;"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"></FONT></p> </td> </tr>
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<td width="100%"> <p style="padding:0;"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"></FONT></p> </td> </tr>
<tr>
<td width="100%"> <p margin-top="10" padding-bottom="2"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><i>Neither the U.S. Securities and Exchange Commission nor the U.S. Commodity Futures Trading Commission has approved or disapproved these
securities, or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.</i></FONT></p> </td> </tr>
<tr>
<td valign="bottom" width="100%"> <p style="padding:0;"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"></FONT></p> </td> </tr> </table> </div> <div style="position:absolute;top:101px;width:70%;left:31%;height:100px;">
<table width="100%">
<tr>
<td width="46.02%"> <p style="padding:0;"></p> </td>
<td width="53.98%"> <p style="padding:0;"></p> </td> </tr>
<tr>
<td width="46.02%"> <p style="align:left;padding-left:14;"></p> </td>
<td width="53.98%"> <p style="align:right;padding-left:46;"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">December 21, 2017</FONT></p> </td> </tr> </table> </div> <div style="position: absolute;top:201px;width:70%;left:31%;height:600px;">
<table width="100%">
<tr>
<td colspan="2" align="left">
<p style="padding:0;"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;$275,685,250<br>
&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Common Shares of Beneficial Interest</FONT></p> </td> </tr> </table>
<table width="100%">
<tr>
<td width="90%" align="left"> <p style="padding:0;"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"></FONT></p> </td>
<td width="10%" align="center"> <p style="padding:0;"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><b>Common</b><b><br></b><b> Shares</b></FONT></p> </td> </tr>
<tr>
<td width="90%" align="left"> <p style="padding:0;"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"> PIMCO Dynamic Income Fund </FONT></p> </td>
<td width="10%" align="center"> <p style="padding:0;"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"> PDI </FONT></p> </td> </tr>
<tr>
<td width="90%" align="left"> <p style="padding:0;"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"></FONT></p> </td>
<td width="10%" align="center"> <p style="padding:0;"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"></FONT></p> </td> </tr> </table> </div> <div style="position: absolute;top:600px;width:100%;left:1%;height:40px;">
<table width="100%">
<tr>
<td width="29%" align="right"><br>
<img src="g450385pr4636img003.jpg"><br> </td>
<td width="35.5%" align="left"></td>
<td width="35.5%" valign="bottom"></td> </tr>
<tr>
<td width="29%" valign="bottom"></td>
<td width="35.5%" valign="bottom"></td>
<td width="35.5%" valign="bottom"></td> </tr> </table> </div> </div><hr style="size:3;color:#999999;width:100%;"> <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;</P> </DIV>
<p style="padding-bottom:4;padding-top:0;padding-left:3"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><a name="toc">Table of Contents</A></FONT></p>
<table cellmargin="0" cellpadding="0" width="100%">
<tr border-bottom="0.5">
<td style="width:40%;align:left;padding:5;"></td>
<td style="width:50%;align:left;padding:10;"></td>
<td style="width:10%;align:left;padding:5;"> <p style="padding:0;text-align:right;"><FONT SIZE="3" face="Arial, Helvetica, sans-serif">Page</FONT></p> </td> </tr>
<tr>
<td style="width:40%;align:left;padding:5;"></td>
<td style="align:left;widht:50%;"> <p style="padding:0"><font size="2" face="Arial, Helvetica, sans-serif"><a href="#chapter_3_4636"><b>Prospectus Summary</b></A></font></p> </td>
<td style="align:right;widht:10%;"> <p style="padding:0;text-align:right;"><font size="2" face="Arial, Helvetica, sans-serif">4</font></p> </td> </tr>
<tr>
<td style="width:40%;align:left;padding:5;"></td>
<td style="align:left;widht:50%;"> <p style="padding:0"><font size="2" face="Arial, Helvetica, sans-serif"><a href="#chapter_4_4636"><b>Summary of Fund Expenses</b></A></font></p> </td>
<td style="align:right;widht:10%;"> <p style="padding:0;text-align:right;"><font size="2" face="Arial, Helvetica, sans-serif">27</font></p> </td> </tr>
<tr>
<td style="width:40%;align:left;padding:5;"></td>
<td style="align:left;widht:50%;"> <p style="padding:0"><font size="2" face="Arial, Helvetica, sans-serif"><a href="#chapter_5_4636"><b>Financial Highlights</b></A></font></p> </td>
<td style="align:right;widht:10%;"> <p style="padding:0;text-align:right;"><font size="2" face="Arial, Helvetica, sans-serif">28</font></p> </td> </tr>
<tr>
<td style="width:40%;align:left;padding:5;"></td>
<td style="align:left;widht:50%;"> <p style="padding:0"><font size="2" face="Arial, Helvetica, sans-serif"><a href="#chapter_6_4636"><b>Use of Proceeds</b></A></font></p> </td>
<td style="align:right;widht:10%;"> <p style="padding:0;text-align:right;"><font size="2" face="Arial, Helvetica, sans-serif">30</font></p> </td> </tr>
<tr>
<td style="width:40%;align:left;padding:5;"></td>
<td style="align:left;widht:50%;"> <p style="padding:0"><font size="2" face="Arial, Helvetica, sans-serif"><a href="#chapter_7_4636"><b>The Fund</b></A></font></p> </td>
<td style="align:right;widht:10%;"> <p style="padding:0;text-align:right;"><font size="2" face="Arial, Helvetica, sans-serif">30</font></p> </td> </tr>
<tr>
<td style="width:40%;align:left;padding:5;"></td>
<td style="align:left;widht:50%;"> <p style="padding:0"><font size="2" face="Arial, Helvetica, sans-serif"><a href="#chapter_8_4636"><b>Investment Objectives and Policies</b></A></font></p> </td>
<td style="align:right;widht:10%;"> <p style="padding:0;text-align:right;"><font size="2" face="Arial, Helvetica, sans-serif">30</font></p> </td> </tr>
<tr>
<td style="width:40%;align:left;padding:5;"></td>
<td style="align:left;widht:50%;"> <p style="padding:0"><font size="2" face="Arial, Helvetica, sans-serif"><a href="#chapter_9_4636"><b>Portfolio Contents</b></A></font></p> </td>
<td style="align:right;widht:10%;"> <p style="padding:0;text-align:right;"><font size="2" face="Arial, Helvetica, sans-serif">31</font></p> </td> </tr>
<tr>
<td style="width:40%;align:left;padding:5;"></td>
<td style="align:left;widht:50%;"> <p style="padding:0"><font size="2" face="Arial, Helvetica, sans-serif"><a href="#chapter_10_4636"><b>Use of Leverage</b></A></font></p> </td>
<td style="align:right;widht:10%;"> <p style="padding:0;text-align:right;"><font size="2" face="Arial, Helvetica, sans-serif">50</font></p> </td> </tr>
<tr>
<td style="width:40%;align:left;padding:5;"></td>
<td style="align:left;widht:50%;"> <p style="padding:0"><font size="2" face="Arial, Helvetica, sans-serif"><a href="#chapter_11_4636"><b>Principal Risks of the Fund</b></A></font></p> </td>
<td style="align:right;widht:10%;"> <p style="padding:0;text-align:right;"><font size="2" face="Arial, Helvetica, sans-serif">52</font></p> </td> </tr>
<tr>
<td style="width:40%;align:left;padding:5;"></td>
<td style="align:left;widht:50%;"> <p style="padding:0"><font size="2" face="Arial, Helvetica, sans-serif"><a href="#chapter_12_4636"><b>How the Fund Manages Risk</b></A></font></p> </td>
<td style="align:right;widht:10%;"> <p style="padding:0;text-align:right;"><font size="2" face="Arial, Helvetica, sans-serif">71</font></p> </td> </tr>
<tr>
<td style="width:40%;align:left;padding:5;"></td>
<td style="align:left;widht:50%;"> <p style="padding:0"><font size="2" face="Arial, Helvetica, sans-serif"><a href="#chapter_13_4636"><b>Management of the Fund</b></A></font></p> </td>
<td style="align:right;widht:10%;"> <p style="padding:0;text-align:right;"><font size="2" face="Arial, Helvetica, sans-serif">73</font></p> </td> </tr>
<tr>
<td style="width:40%;align:left;padding:5;"></td>
<td style="align:left;widht:50%;"> <p style="padding:0"><font size="2" face="Arial, Helvetica, sans-serif"><a href="#chapter_14_4636"><b>Net Asset Value</b></A></font></p> </td>
<td style="align:right;widht:10%;"> <p style="padding:0;text-align:right;"><font size="2" face="Arial, Helvetica, sans-serif">76</font></p> </td> </tr>
<tr>
<td style="width:40%;align:left;padding:5;"></td>
<td style="align:left;widht:50%;"> <p style="padding:0"><font size="2" face="Arial, Helvetica, sans-serif"><a href="#chapter_15_4636"><b>Distributions</b></A></font></p> </td>
<td style="align:right;widht:10%;"> <p style="padding:0;text-align:right;"><font size="2" face="Arial, Helvetica, sans-serif">77</font></p> </td> </tr>
<tr>
<td style="width:40%;align:left;padding:5;"></td>
<td style="align:left;widht:50%;"> <p style="padding:0"><font size="2" face="Arial, Helvetica, sans-serif"><a href="#chapter_16_4636"><b>Dividend Reinvestment Plan</b></A></font></p> </td>
<td style="align:right;widht:10%;"> <p style="padding:0;text-align:right;"><font size="2" face="Arial, Helvetica, sans-serif">78</font></p> </td> </tr>
<tr>
<td style="width:40%;align:left;padding:5;"></td>
<td style="align:left;widht:50%;"> <p style="padding:0"><font size="2" face="Arial, Helvetica, sans-serif"><a href="#chapter_17_4636"><b>Description of Capital Structure</b></A></font></p> </td>
<td style="align:right;widht:10%;"> <p style="padding:0;text-align:right;"><font size="2" face="Arial, Helvetica, sans-serif">79</font></p> </td> </tr>
<tr>
<td style="width:40%;align:left;padding:5;"></td>
<td style="align:left;widht:50%;"> <p style="padding:0"><font size="2" face="Arial, Helvetica, sans-serif"><a href="#chapter_18_4636"><b>Plan of Distribution</b></A></font></p> </td>
<td style="align:right;widht:10%;"> <p style="padding:0;text-align:right;"><font size="2" face="Arial, Helvetica, sans-serif">79</font></p> </td> </tr>
<tr>
<td style="width:40%;align:left;padding:5;"></td>
<td style="align:left;widht:50%;"> <p style="padding:0"><font size="2" face="Arial, Helvetica, sans-serif"><a href="#chapter_19_4636"><b>Market and Net Asset Value Information</b></A></font></p> </td>
<td style="align:right;widht:10%;"> <p style="padding:0;text-align:right;"><font size="2" face="Arial, Helvetica, sans-serif">80</font></p> </td> </tr>
<tr>
<td style="width:40%;align:left;padding:5;"></td>
<td style="align:left;widht:50%;"> <p style="padding:0"><font size="2" face="Arial, Helvetica, sans-serif"><a href="#chapter_20_4636"><b>Anti-Takeover Provisions in the Declaration of Trust</b></A></font></p> </td>
<td style="align:right;widht:10%;"> <p style="padding:0;text-align:right;"><font size="2" face="Arial, Helvetica, sans-serif">81</font></p> </td> </tr>
<tr>
<td style="width:40%;align:left;padding:5;"></td>
<td style="align:left;widht:50%;"> <p style="padding:0"><font size="2" face="Arial, Helvetica, sans-serif"><a href="#chapter_21_4636"><b>Repurchase of Common Shares; Conversion to Open-End Fund</b></A></font></p> </td>
<td style="align:right;widht:10%;"> <p style="padding:0;text-align:right;"><font size="2" face="Arial, Helvetica, sans-serif">81</font></p> </td> </tr>
<tr>
<td style="width:40%;align:left;padding:5;"></td>
<td style="align:left;widht:50%;"> <p style="padding:0"><font size="2" face="Arial, Helvetica, sans-serif"><a href="#chapter_22_4636"><b>Tax Matters</b></A></font></p> </td>
<td style="align:right;widht:10%;"> <p style="padding:0;text-align:right;"><font size="2" face="Arial, Helvetica, sans-serif">82</font></p> </td> </tr>
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<td style="width:40%;align:left;padding:5;"></td>
<td style="align:left;widht:50%;"> <p style="padding:0"><font size="2" face="Arial, Helvetica, sans-serif"><a href="#chapter_23_4636"><b>Custodian and Transfer Agent</b></A></font></p> </td>
<td style="align:right;widht:10%;"> <p style="padding:0;text-align:right;"><font size="2" face="Arial, Helvetica, sans-serif">84</font></p> </td> </tr>
<tr>
<td style="width:40%;align:left;padding:5;"></td>
<td style="align:left;widht:50%;"> <p style="padding:0"><font size="2" face="Arial, Helvetica, sans-serif"><a href="#chapter_24_4636"><b>Independent Registered Public Accounting Firm</b></A></font></p> </td>
<td style="align:right;widht:10%;"> <p style="padding:0;text-align:right;"><font size="2" face="Arial, Helvetica, sans-serif">84</font></p> </td> </tr>
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<td style="width:40%;align:left;padding:5;"></td>
<td style="align:left;widht:50%;"> <p style="padding:0"><font size="2" face="Arial, Helvetica, sans-serif"><a href="#chapter_25_4636"><b>Legal Matters</b></A></font></p> </td>
<td style="align:right;widht:10%;"> <p style="padding:0;text-align:right;"><font size="2" face="Arial, Helvetica, sans-serif">84</font></p> </td> </tr>
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<td style="width:40%;align:left;padding:5;"></td>
<td style="align:left;widht:50%;"> <p style="padding:0"><font size="2" face="Arial, Helvetica, sans-serif"><a href="#chapter_26_4636"><b>Table of Contents for the Statement of Additional Information</b></A></font></p> </td>
<td style="align:right;widht:10%;"> <p style="padding:0;text-align:right;"><font size="2" face="Arial, Helvetica, sans-serif">85</font></p> </td> </tr>
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<td style="width:40%;align:left;padding:5;"></td>
<td style="align:left;widht:50%;"> <p style="padding:0"><font size="2" face="Arial, Helvetica, sans-serif"><a href="#chapter_27_4636"><b>Appendix A - Description of Securities Ratings</b></A></font></p> </td>
<td style="align:right;widht:10%;"> <p style="padding:0;text-align:right;"><font size="2" face="Arial, Helvetica, sans-serif">86</font></p> </td> </tr>
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<td style="width:40%;align:left;padding:5;"></td>
<td style="align:left;widht:50%;"> <p style="padding:0"><font size="2" face="Arial, Helvetica, sans-serif"><a href="#chapter_28_4636"><b>Back Cover</b></A></font></p> </td>
<td style="align:right;widht:10%;"> <p style="padding:0;text-align:right;"><font size="2" face="Arial, Helvetica, sans-serif">92</font></p> </td> </tr> </table><hr style="size:3;color:#999999;width:100%;">
<DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;</P> </DIV><a name="chapter_2_4636"></A><a name="chapter_2-sect1_1_4636"></A>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
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<td align="left" width="29.5%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b><br>
<img src="g450385pr4636img004.jpg"><br></b></FONT></p> </td>
<td align="left" width="35.25%" colspan="2"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>PIMCO Dynamic Income Fund</b></FONT></p> </td> </tr>
<tr>
<td align="left" width="29.5%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2">PIMCO Dynamic Income Fund (the "Fund") is a
diversified, closed-end management investment company that commenced operations on May 30, 2012, following the initial public offering of its common shares.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"><i><b>Investment Objectives.&#160;</b></i>The Fund seeks current income as a primary objective and capital appreciation as a secondary objective.&#160;</font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"><i><b>Investment Strategy.</b></i> The Fund seeks to achieve its investment objectives by utilizing a dynamic asset allocation strategy
that focuses on duration management, credit quality analysis, risk management techniques and broad diversification among issuers, industries and sectors. The Fund normally invests in a portfolio that consists primarily of corporate debt obligations
of varying maturities, other corporate income-producing securities, and income-producing securities of non-corporate issuers. On behalf of the Fund, Pacific Investment Management Company LLC, the Fund's investment manager ("PIMCO" or the "Investment
Manager"), employs an active approach to allocation among multiple fixed income sectors based on, among other things, market conditions, valuation assessments and economic outlook, credit market trends and other economic factors. The Fund focuses on
seeking the best income generating investment ideas across multiple fixed income sectors, with an emphasis on seeking opportunities in developed and emerging global credit markets.</font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Under normal circumstances, the Fund will have a short to intermediate average portfolio duration (i.e., within a zero to eight
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 believes that maintaining duration within this range offers
flexibility and the opportunity for above-average returns while potentially limiting exposure to interest rate volatility and related risks.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"><i><b>Portfolio Contents.</b></i> The Fund normally invests worldwide in a portfolio of debt obligations and other income-producing securities of any type and credit quality and with varying maturities
and related derivative instruments.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund may invest in investment grade debt securities and below investment grade
debt securities (commonly referred to as "high yield" securities or "junk bonds"), including securities of stressed issuers. The Fund may invest without limit in securities of U.S. issuers and without limit in securities of foreign (non-U.S.)
issuers, securities traded principally outside of the United States, and securities denominated in currencies other than the U.S. dollar. The Fund may invest without limit in investment grade sovereign debt denominated in the relevant country's
local currency with less than 1 year remaining to maturity ("short-term investment grade sovereign debt"), including short-term investment grade sovereign debt issued by emerging market issuers. The Fund may invest up to 40% of its total assets in
securities and instruments that are economically tied to "emerging market" countries other than investments in short-term investment grade sovereign debt issued by emerging market issuers, where as noted above there is no limit. The Fund may also
invest directly in foreign currencies, including local emerging market currencies. The Fund will not normally invest directly in common stocks of operating companies. However, the Fund may own and hold common stocks of operating companies in its
portfolio from time to time in connection with a corporate action, the restructuring of a debt instrument, or through the conversion of a convertible security held by the Fund.</font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">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.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Substantially all of the Fund's portfolio may consist of below investment-grade securities
and/or mortgage-related or other types of asset backed securities. The Fund will not normally invest more than 20% of its total assets in debt instruments, other than mortgage-related or asset-backed securities, that are, at the time of purchase,
rated CCC+ or lower by S&#38;P and Fitch and Caa1 or lower by Moody's, or that are unrated but determined by PIMCO to be of comparable quality to securities so rated. The Fund may invest without limit in mortgage-related and other asset-backed
securities regardless of rating&#8212;<i>i.e.,</i> of any credit quality.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund may invest in securities that have
not been registered for public sale in the U.S. or relevant non-U.S. jurisdictions, including without limit securities eligible for purchase and sale pursuant to Rule 144A under the Securities Act of 1933, as amended, or relevant provisions of
applicable non-U.S. law, and other securities issued in private placements. The Fund may also invest in securities of other investment companies, including, without limit, exchange-traded funds ("ETFs"), and may invest in foreign ETFs. The Fund may
invest in real estate investment trusts ("REITs"). The Fund may invest in securities of companies with any market capitalization, including small and medium capitalizations.</font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund may normally invest up to 40% of its total assets in bank loans (including, among others, senior loans, delayed funding
loans, revolving credit facilities and loan participations and assignments). The Fund will not normally invest more than 10% of its total assets in convertible debt securities, including synthetic convertible debt securities. The Fund may also
invest in preferred securities.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">As a matter of fundamental policy, the Fund will normally invest at least 25% of its
total assets in privately-issued (commonly known as "non-agency") mortgage-related securities.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund may invest
without limit in illiquid securities (i.e., securities that cannot be disposed of within seven days in the ordinary course of business at approximately the value at which the Fund has valued the securities).</font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"><b><i>Leverage. </i></b></font><font face="Arial, Helvetica, sans-serif" size="2">The Fund may obtain leverage through reverse repurchase
</font><font face="Arial, Helvetica, sans-serif" size="2">agreements, dollar rolls or borrowings, such as through bank loans or </font><font face="Arial, Helvetica, sans-serif" size="2">commercial paper and/or other credit facilities. The Fund may
also enter into </font><font face="Arial, Helvetica, sans-serif" size="2">transactions other than those noted above that may give rise to a form of </font><font face="Arial, Helvetica, sans-serif" size="2">leverage including, among others, credit
default swaps, futures and forward </font><font face="Arial, Helvetica, sans-serif" size="2">contracts (including foreign currency exchange contracts), total return </font><font face="Arial, Helvetica, sans-serif" size="2">swaps and other derivative
transactions, loans of portfolio securities, short </font><font face="Arial, Helvetica, sans-serif" size="2">sales and when-issued, delayed delivery and forward commitment </font><font face="Arial, Helvetica, sans-serif" size="2">transactions.
Although it has no current intention to do so, the Fund may </font><font face="Arial, Helvetica, sans-serif" size="2">also determine to issue preferred shares or other types of senior securities </font><font
face="Arial, Helvetica, sans-serif" size="2">to add leverage to its portfolio. Depending upon market conditions and </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
<table width="100%">
<tr>
<td align="left" width="50%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><br>
<img src="g450385pr4636img005.jpg"><br></FONT></p> </td>
<td align="right" width="46.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">PIMCO Dynamic Income Fund | <b>PROSPECTUS</b></FONT></p> </td>
<td align="right" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">1</FONT></p> </td> </tr> </table><hr style="size:3;color:#999999;width:100%;">
<DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
<tr>
<td align="left" width="29.5%" colspan="3"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>PIMCO Dynamic Income Fund</b></FONT></p> </td> </tr>
<tr>
<td align="left" width="29.5%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2">other factors, the Fund may or may not determine
to add leverage following </font><font face="Arial, Helvetica, sans-serif" size="2">an offering to maintain or increase the total amount of leverage (as a </font><font face="Arial, Helvetica, sans-serif" size="2">percentage of the Fund's total
assets) that the Fund currently maintains, </font><font face="Arial, Helvetica, sans-serif" size="2">taking into account the additional assets raised through the issuance of </font><font face="Arial, Helvetica, sans-serif" size="2">Common Shares in
such offering. The Fund utilizes certain kinds of leverage, </font><font face="Arial, Helvetica, sans-serif" size="2">such as reverse repurchase agreements and credit default swaps,
</font><font face="Arial, Helvetica, sans-serif" size="2">opportunistically and may choose to increase or decrease, or eliminate </font><font face="Arial, Helvetica, sans-serif" size="2">entirely, its use of such leverage over time and from time to
time based on </font><font face="Arial, Helvetica, sans-serif" size="2">PIMCO's assessment of the yield curve environment, interest rate trends, </font><font face="Arial, Helvetica, sans-serif" size="2">market conditions and other factors. If the
Fund determines to add leverage </font><font face="Arial, Helvetica, sans-serif" size="2">following an offering, it is not possible to predict with accuracy the precise </font><font face="Arial, Helvetica, sans-serif" size="2">amount of leverage
that would be added, in part because it is not possible </font><font face="Arial, Helvetica, sans-serif" size="2">to predict the number of Common Shares that ultimately will be sold in an
</font><font face="Arial, Helvetica, sans-serif" size="2">offering or series of offerings. To the extent that the Fund does not add </font><font face="Arial, Helvetica, sans-serif" size="2">additional leverage following an offering, the Fund's total
amount of </font><font face="Arial, Helvetica, sans-serif" size="2">leverage as a percentage of its total assets will decrease, which could result </font><font face="Arial, Helvetica, sans-serif" size="2">in a reduction of investment income
available for distribution to Common </font><font face="Arial, Helvetica, sans-serif" size="2">Shareholders. </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Under normal market conditions, the Fund will limit its use of leverage
from any combination of reverse repurchase agreements or dollar roll transactions (whether or not these instruments are covered), borrowings (i.e., loans or lines of credit from banks or other credit facilities), any future issuance of preferred
shares and, to the extent described in this prospectus under the section entitled "Use of Leverage," credit default swaps, other swap agreements and futures contracts, such that the assets attributable to the use of such leverage will not exceed 50%
of the Fund's total assets (including, for purposes of the 50% limit, the amounts of leverage obtained through the use of such instruments). The Investment Company Act of 1940, as amended (the "1940 Act"), and the rules and regulations promulgated
thereunder, also generally limits the extent to which the Fund may utilize uncovered reverse repurchase agreements and borrowings, together with any other senior securities representing indebtedness, to 33 1/3% of the Fund's total net assets at the
time utilized. See "Use of Leverage." 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. 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. See "Use of Leverage" and "Principal Risks of the Fund&#8212;Leverage Risk."</font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">This prospectus is part of a registration statement that the Fund has filed </font><font face="Arial, Helvetica, sans-serif" size="2">with
the U.S. Securities and Exchange Commission (the "SEC"), using the </font><font face="Arial, Helvetica, sans-serif" size="2">"shelf" registration process. The Fund may offer, from time to time, in one or </font><font
face="Arial, Helvetica, sans-serif" size="2">more offerings, up to $275,685,250 of the Common Shares on terms to be </font><font face="Arial, Helvetica, sans-serif" size="2">determined at the time of the offering. This prospectus provides you with a
</font><font face="Arial, Helvetica, sans-serif" size="2">general description of the Common Shares that the Fund may offer. Each </font><font face="Arial, Helvetica, sans-serif" size="2">time the Fund uses this prospectus to offer Common Shares, the
Fund will </font><font face="Arial, Helvetica, sans-serif" size="2">provide a prospectus supplement that will contain specific information </font><font face="Arial, Helvetica, sans-serif" size="2">about the terms of that offering. The prospectus
supplement may also add, </font><font face="Arial, Helvetica, sans-serif" size="2">update or change information contained in this prospectus. You should read </font><font face="Arial, Helvetica, sans-serif" size="2">this prospectus and the
applicable prospectus supplement, which contain </font><font face="Arial, Helvetica, sans-serif" size="2">important information about the Fund, carefully before you invest in the </font><font face="Arial, Helvetica, sans-serif" size="2">Common
Shares. Common Shares may be offered directly to one or more </font><font face="Arial, Helvetica, sans-serif" size="2">purchasers, through agents designated from time to time by the Fund, or to
</font><font face="Arial, Helvetica, sans-serif" size="2">or through underwriters or dealers. The prospectus supplement relating to </font><font face="Arial, Helvetica, sans-serif" size="2">an offering will identify any agents, underwriters or
dealers involved in the </font><font face="Arial, Helvetica, sans-serif" size="2">sale of Common Shares, and will set forth any applicable purchase price, </font><font face="Arial, Helvetica, sans-serif" size="2">fee, commission or discount
arrangement between the Fund and its agents </font><font face="Arial, Helvetica, sans-serif" size="2">or underwriters, or among the Fund's underwriters, or the basis upon which </font><font face="Arial, Helvetica, sans-serif" size="2">such amount
may be calculated. See "Plan of Distribution." The Fund may </font><font face="Arial, Helvetica, sans-serif" size="2">not sell any Common Shares through agents, underwriters or dealers
</font><font face="Arial, Helvetica, sans-serif" size="2">without delivery or deemed delivery of a prospectus supplement describing </font><font face="Arial, Helvetica, sans-serif" size="2">the method and terms of the particular offering of the
Common Shares. </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">You should retain this prospectus and any prospectus supplement for future reference. A Statement of
Additional Information, dated December 21, 2017, containing additional information about the Fund has been filed with the SEC and is incorporated by reference in its entirety into this prospectus. You can review the table of contents of the
Statement of Additional Information on page 85 of this prospectus. You may request a free copy of the Statement of Additional Information, request the Fund's most recent annual and semiannual reports, request information about the Fund and make
shareholder inquiries by calling toll-free (844)-337-4626 or by writing to the Fund at c/o Pacific Investment Management Company LLC, 1633 Broadway, New York, New York 10019. You may also obtain a copy of the Statement of Additional Information (and
other information regarding the Fund) from the SEC's Public Reference Room in Washington, D.C. by calling (202) 551-8090. The SEC charges a fee for copies. The Fund's Statement of Additional Information and most recent annual and semiannual reports
are available, free of charge, on the Fund's website (http://www.pimco.com). You can obtain the same information, free of charge, from the SEC's website (http://www.sec.gov).</font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The 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.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund's common shares
(the "Common Shares") are listed on the New York Stock Exchange ("NYSE") under the symbol PDI. The last reported sale price of the Common Shares, as reported by the NYSE on November 30, 2017, was $30.46 per Common Share. The net asset value ("NAV")
of the Common Shares at the close of business on November 30, 2017, was $29.02 per Common Share.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"><b>Investment in the
Fund's common shares involves substantial </b></font><font face="Arial, Helvetica, sans-serif" size="2"><b>risks arising from, among other strategies, the Fund's ability to </b></font><font face="Arial, Helvetica, sans-serif" size="2"><b>invest in
debt instruments that are, at the time of purchase, </b></font><font face="Arial, Helvetica, sans-serif" size="2"><b>rated below investment grade (below Baa3 by Moody's Investors
</b></font><font face="Arial, Helvetica, sans-serif" size="2"><b>Service, Inc. ("Moody's") or below BBB- by either S&#38;P Global </b></font><font face="Arial, Helvetica, sans-serif" size="2"><b>Ratings, a division of The McGraw-Hill Company, Inc.
("S&#38;P") or </b></font><font face="Arial, Helvetica, sans-serif" size="2"><b>Fitch, Inc. ("Fitch")) or unrated but determined by PIMCO to be </b></font><font face="Arial, Helvetica, sans-serif" size="2"><b>of comparable quality, the Fund's
exposure to foreign and </b></font><font face="Arial, Helvetica, sans-serif" size="2"><b>emerging markets securities and currencies and to mortgage-</b></font><font face="Arial, Helvetica, sans-serif" size="2"><b>related and other asset-backed
securities, and the Fund's use of </b></font><font face="Arial, Helvetica, sans-serif" size="2"><b>leverage. Debt securities of below investment grade quality are </b></font><font face="Arial, Helvetica, sans-serif" size="2"><b>regarded as having
predominantly speculative characteristics </b></font><font face="Arial, Helvetica, sans-serif" size="2"><b>with respect to capacity to pay interest and to repay principal, </b></font><font face="Arial, Helvetica, sans-serif" size="2"><b>and are
commonly referred to as "high yield" securities or "junk </b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
<table width="100%">
<tr>
<td align="left" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">2 &#160;&#160;&#160;&#160; </FONT></p> </td>
<td align="left" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><b>PROSPECTUS</b> | PIMCO Dynamic Income Fund &#160;&#160;&#160;&#160; </FONT></p> </td> </tr>
</table><hr style="size:3;color:#999999;width:100%;"> <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;
</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
<tr>
<td align="right" width="29.5%" colspan="3"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
<tr>
<td align="right" width="29.5%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2"><b>bonds." The Fund's exposure to foreign
securities and currencies, </b></font><font face="Arial, Helvetica, sans-serif" size="2"><b>and particularly to emerging markets securities and currencies, </b></font><font face="Arial, Helvetica, sans-serif" size="2"><b>involves special risks,
including foreign currency risk and the risk </b></font><font face="Arial, Helvetica, sans-serif" size="2"><b>that the securities may decline in response to unfavorable </b></font><font face="Arial, Helvetica, sans-serif" size="2"><b>political and
legal developments, unreliable or untimely </b></font><font face="Arial, Helvetica, sans-serif" size="2"><b>information or economic and financial instability. Mortgage-</b></font><font face="Arial, Helvetica, sans-serif" size="2"><b>related and
other asset-backed securities are subject to </b></font><font face="Arial, Helvetica, sans-serif" size="2"><b>extension and prepayment risk and often have complicated </b></font><font face="Arial, Helvetica, sans-serif" size="2"><b>structures that
make them difficult to value. Because of the risks </b></font><font face="Arial, Helvetica, sans-serif" size="2"><b>associated with investing in high yield securities, foreign and
</b></font><font face="Arial, Helvetica, sans-serif" size="2"><b>emerging market securities (and related exposure to foreign </b></font><font face="Arial, Helvetica, sans-serif" size="2"><b>currencies) and mortgage-related and other asset-backed
</b></font><font face="Arial, Helvetica, sans-serif" size="2"><b>securities, and using leverage, an investment in the Fund should </b></font><font face="Arial, Helvetica, sans-serif" size="2"><b>be considered speculative. Before investing in the
Common </b></font><font face="Arial, Helvetica, sans-serif" size="2"><b>Shares, you should read the discussion of the principal risks of </b></font><font face="Arial, Helvetica, sans-serif" size="2"><b>investing in the Fund in "Principal Risks of
the Fund." Certain of </b></font><font face="Arial, Helvetica, sans-serif" size="2"><b>these risks are summarized in "Prospectus Summary&#8212;Principal </b></font><font face="Arial, Helvetica, sans-serif" size="2"><b>Risks of the Fund." The Fund
cannot assure you that it will </b></font><font face="Arial, Helvetica, sans-serif" size="2"><b>achieve its investment objectives, and you could lose all of your </b></font><font face="Arial, Helvetica, sans-serif" size="2"><b>investment in the
Fund. </b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
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<td align="right" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">December 21, 2017 | <b>PROSPECTUS</b></FONT></p> </td>
<td align="right" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">3</FONT></p> </td> </tr> </table><hr style="size:3;color:#999999;width:100%;">
<DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;
</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p><a name="chapter_3_4636"></A><a name="chapter_3-sect1_1_4636"></A>
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<img src="g450385pr4636img004.jpg"><br></b></FONT></p> </td>
<td align="left" width="35.25%" colspan="2"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>PIMCO Dynamic Income Fund</b></FONT></p> </td> </tr>
<tr>
<td align="left" width="29.5%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table>
<p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b>Prospectus Summary<br> </b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"><i>This is only a summary. This summary may not
contain all of the information that you should consider before investing in the Fund's common shares of beneficial interest (the "Common Shares"). You should review the more detailed information contained in this prospectus and in any related
prospectus supplement and in the Statement of Additional Information, especially the information set forth under the heading "Principal Risks of the Fund."</i></font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font
face="Arial, Helvetica, sans-serif" size="3"><b>The Fund<br> </b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">PIMCO Dynamic Income Fund (the "Fund") is a diversified, closed-end management investment company. The Fund commenced
operations on May 30, 2012, following the initial public offering of its Common Shares.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Common Shares are listed
on the New York Stock Exchange ("NYSE") under the symbol "PDI." As of November 30, 2017, the net assets of the Fund attributable to Common Shares were $1,450,051,981 and the Fund had outstanding 49,964,011 Common Shares. The last reported sale price
of the Common Shares, as reported by the NYSE on November 30, 2017, was $30.46 per Common Share. The net asset value ("NAV") of the Common Shares at the close of business on November 30, 2017, was $29.02 per Common Share. See "Description of Capital
Structure."</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b>The Offering<br> </b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund may offer, from time
to time, in one or more offerings, up to $275,685,250 of the Common Shares on terms to be determined at the time of the offering. The Common Shares may be offered at prices and on terms to be set forth in one or more prospectus supplements. You
should read this prospectus and the applicable prospectus supplement carefully before you invest in the Common Shares. Common Shares may be offered directly to one or more purchasers, through agents designated from time to time by the Fund, or to or
through underwriters or dealers. The prospectus supplement relating to an offering will identify any agents, underwriters or dealers involved in the sale of Common Shares, and will set forth any applicable purchase price, fee, commission or discount
arrangement between the Fund and its agents or underwriters, or among the Fund's underwriters, or the basis upon which such amount may be calculated. See "Plan of Distribution." The Fund may not sell any Common Shares through agents, underwriters or
dealers without delivery or deemed delivery of a prospectus supplement describing the method and terms of the particular offering of the Common Shares.</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font
face="Arial, Helvetica, sans-serif" size="3"><b>Use of Proceeds</b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The net proceeds of an offering will be invested in accordance with the Fund's investment objectives and policies as
set forth below. It is currently anticipated that the Fund will be able to invest substantially all of the net proceeds of an offering in accordance with its investment objectives and policies within approximately 30 days of receipt by the Fund,
depending on the amount and timing of proceeds available to the Fund as well as the availability of investments consistent with the Fund's investment objectives and policies, and except to the extent proceeds are held in cash to pay dividends or
expenses, or for temporary defensive purposes. See "Use of Proceeds."</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b>Investment Objectives and Policies<br> </b></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund seeks current income as a primary objective and capital appreciation as a secondary objective. The Fund will seek to achieve its
investment objectives by utilizing a dynamic asset allocation strategy among multiple fixed income sectors in the global credit markets, including corporate debt (including, among other things, fixed-, variable- and floating-rate bonds, bank loans,
convertible securities and stressed debt securities issued by U.S. or foreign (non-U.S.) corporations or other business entities, including emerging market issuers), mortgage-related and other asset-backed securities, government and sovereign debt,
taxable municipal bonds and other fixed-, variable- and floating-rate income-producing securities of U.S. and foreign issuers, including emerging market issuers. The Fund may invest in investment grade debt securities and below investment grade debt
securities (commonly referred to as "high yield" securities or "junk bonds"), including securities of stressed issuers. The types of securities and instruments in which the Fund may invest are summarized under "Portfolio Contents" below. The Fund
cannot assure you that it will achieve its investment objectives, and you could lose all of your investment in the Fund.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p>
<p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b>Portfolio Management Strategies<br> </b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"><i><b>Dynamic Allocation
Strategy.</b></i> On behalf of the Fund, the Fund's investment manager, Pacific Investment Management Company LLC ("PIMCO" or the "Investment Manager"), employs an active approach to allocation among multiple fixed income 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 focuses on seeking the best income generating investment ideas across multiple fixed income sectors, with an emphasis on seeking opportunities in developed and emerging global credit markets. PIMCO may choose to focus on
particular countries/regions (e.g., U.S. vs. foreign), 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 fixed income
sectors draws on PIMCO's regional and sector specialist expertise. As a matter of fundamental policy, the Fund will normally invest at least 25% of its total assets in privately-issued (commonly known as "non-agency") mortgage-related securities.
The Fund will observe other guidelines with respect to certain asset classes as summarized below.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"><i><b>Investment
Selection Strategies.</b></i> Once the Fund's top-down, portfolio positioning decisions have been made as described above, PIMCO selects particular investments for the Fund by employing a bottom-up, disciplined credit approach which is driven by
fundamental, independent research within each sector/asset class represented in the Fund, with a focus on identifying securities and other instruments with solid and/or improving fundamentals.</font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">PIMCO utilizes strategies that focus on credit quality analysis, duration
</font><font face="Arial, Helvetica, sans-serif" size="2">management and other risk management techniques. PIMCO attempts to </font><font face="Arial, Helvetica, sans-serif" size="2">identify, through fundamental research driven by independent
credit </font><font face="Arial, Helvetica, sans-serif" size="2">analysis and proprietary analytical tools, debt obligations and other income-</font><font face="Arial, Helvetica, sans-serif" size="2">producing securities that provide current income
and/or opportunities for </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
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<td align="left" width="50%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><br>
<img src="g450385pr4636img005.jpg"><br></FONT></p> </td>
<td align="right" width="46.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">PIMCO Dynamic Income Fund | <b>PROSPECTUS</b></FONT></p> </td>
<td align="right" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">4</FONT></p> </td> </tr> </table><hr style="size:3;color:#999999;width:100%;">
<DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p>
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<tr>
<td align="right" width="29.5%" colspan="3"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
<tr>
<td align="right" width="29.5%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2">capital appreciation based on its analysis of
the issuer's credit characteristics </font><font face="Arial, Helvetica, sans-serif" size="2">and the position of the security in the issuer's capital structure. </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">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.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"><i><b>Credit Quality.</b></i> The Fund may invest in debt instruments that are, at the time of purchase, rated below investment grade, or unrated but determined by PIMCO to be of comparable quality.
However, the Fund will not normally invest more than 20% of its total assets in debt instruments, other than mortgage-related and other asset-backed securities, that are, at the time of purchase, rated CCC+ or lower by S&#38;P Global Ratings
("S&#38;P") and Fitch, Inc. ("Fitch") and Caa1 or lower by Moody's Investors Services Inc. ("Moody's"), or that are unrated but determined by PIMCO to be of comparable quality to securities so rated. The Fund may invest without limit in
mortgage-related and other asset-backed securities regardless of rating&#8212;<i>i.e.,</i> of any credit quality. For purposes of applying the foregoing policies, in the case of securities with split ratings (<i>i.e.,</i> a security receiving two
different ratings from two different rating agencies), the Fund will apply the higher of the applicable ratings. Subject to the aforementioned investment restrictions, the Fund may invest in securities of stressed issuers, which include securities
at risk of being in default as to the repayment of principal and/or interest at the time of acquisition by the Fund or that are rated in the lower rating categories by one or more nationally recognized statistical rating organizations (for example,
Ca or lower by Moody's or CC or lower by S&#38;P or Fitch) or, if unrated, are determined by PIMCO to be of comparable quality. Debt instruments of below investment grade quality are regarded as having predominantly speculative characteristics with
respect to capacity to pay interest and to repay principal, and are commonly referred to as "high yield" securities or "junk bonds." Debt instruments in the lowest investment grade category also may be considered to possess some speculative
characteristics. The Fund may, for hedging, investment or leveraging purposes, make use of credit default swaps, which are contracts whereby one party makes periodic payments to a counterparty in exchange for the right to receive from the
counterparty a payment equal to the par (or other agreed-upon) value of a referenced debt obligation in the event of a default or other credit event by the issuer of the debt obligation.</font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"><i><b>Independent Credit Analysis.</b></i> 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 minimize credit risk and to identify
issuers, industries or sectors that are undervalued or that offer attractive yields relative to PIMCO's assessment of their credit characteristics. This aspect of PIMCO's capabilities will be particularly important to the extent that the Fund
invests in high yield securities and in securities of emerging market issuers.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"><b><i>Duration Management.
</i></b></font><font face="Arial, Helvetica, sans-serif" size="2">It is expected that the Fund normally will have a </font><font face="Arial, Helvetica, sans-serif" size="2">short to intermediate average portfolio duration (i.e., within a zero to
eight </font><font face="Arial, Helvetica, sans-serif" size="2">year (0 to 8) range), as calculated by PIMCO, although it may be shorter or </font><font face="Arial, Helvetica, sans-serif" size="2">longer at any time or from time to time depending
on market conditions </font><font face="Arial, Helvetica, sans-serif" size="2">and other factors. While the Fund seeks to maintain a short to intermediate </font><font face="Arial, Helvetica, sans-serif" size="2">average portfolio duration, there is
no limit on the maturity or duration of </font><font face="Arial, Helvetica, sans-serif" size="2">any individual security in which the Fund may invest. PIMCO believes that </font><font face="Arial, Helvetica, sans-serif" size="2">maintaining
duration within this range offers flexibility and the opportunity </font><font face="Arial, Helvetica, sans-serif" size="2">for above-average returns while potentially limiting exposure to interest rate </font><font
face="Arial, Helvetica, sans-serif" size="2">volatility and related risk. Duration is a measure used to determine the </font><font face="Arial, Helvetica, sans-serif" size="2">sensitivity of a security's price to changes in interest rates. The
Fund's </font><font face="Arial, Helvetica, sans-serif" size="2">duration strategy may entail maintaining a negative average portfolio </font><font face="Arial, Helvetica, sans-serif" size="2">duration from time to time, which would potentially
benefit the portfolio in </font><font face="Arial, Helvetica, sans-serif" size="2">an environment of rising market interest rates, but would generally </font><font face="Arial, Helvetica, sans-serif" size="2">adversely impact the portfolio in an
environment of falling or neutral market </font><font face="Arial, Helvetica, sans-serif" size="2">interest rates. PIMCO may also utilize certain strategies, including without </font><font face="Arial, Helvetica, sans-serif" size="2">limit
investments in structured notes or interest rate futures contracts or </font><font face="Arial, Helvetica, sans-serif" size="2">swap, cap, floor or collar transactions, for the purpose of reducing the </font><font
face="Arial, Helvetica, sans-serif" size="2">interest rate sensitivity of the Fund's portfolio, although there is no </font><font face="Arial, Helvetica, sans-serif" size="2">assurance that it will do so or that such strategies will be successful.
</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b>Portfolio Contents<br> </b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund normally invests worldwide
in a portfolio of debt obligations and </font><font face="Arial, Helvetica, sans-serif" size="2">other income-producing securities of any type and credit quality, with </font><font face="Arial, Helvetica, sans-serif" size="2">varying maturities and
related derivative instruments. The Fund's portfolio of </font><font face="Arial, Helvetica, sans-serif" size="2">debt obligations and income-producing securities may include, without
</font><font face="Arial, Helvetica, sans-serif" size="2">limitation, bonds, debentures, notes, and other debt securities of U.S. and </font><font face="Arial, Helvetica, sans-serif" size="2">foreign (non-U.S.) corporate and other issuers, including
commercial paper; </font><font face="Arial, Helvetica, sans-serif" size="2">mortgage-related and other asset-backed securities issued by government </font><font face="Arial, Helvetica, sans-serif" size="2">agencies or other governmental entities or
by private originators or issuers; </font><font face="Arial, Helvetica, sans-serif" size="2">U.S. Government securities; obligations of foreign governments or their sub-</font><font face="Arial, Helvetica, sans-serif" size="2">divisions, agencies
and government sponsored enterprises and obligations </font><font face="Arial, Helvetica, sans-serif" size="2">of international agencies and supranational entities; municipal securities </font><font face="Arial, Helvetica, sans-serif" size="2">and
other debt securities issued by states or local governments and their </font><font face="Arial, Helvetica, sans-serif" size="2">agencies, authorities and other government-sponsored enterprises,
</font><font face="Arial, Helvetica, sans-serif" size="2">including taxable municipal securities (such as Build America Bonds); </font><font face="Arial, Helvetica, sans-serif" size="2">payment-in-kind securities; zero-coupon bonds;
inflation-indexed bonds </font><font face="Arial, Helvetica, sans-serif" size="2">issued by both governments and corporations; structured notes, including </font><font face="Arial, Helvetica, sans-serif" size="2">hybrid or indexed securities;
catastrophe bonds and other event-linked </font><font face="Arial, Helvetica, sans-serif" size="2">bonds; credit-linked notes; structured credit products; bank loans (including, </font><font face="Arial, Helvetica, sans-serif" size="2">among others,
senior loans, delayed funding loans, revolving credit facilities </font><font face="Arial, Helvetica, sans-serif" size="2">and loan participations and assignments); preferred securities; convertible </font><font
face="Arial, Helvetica, sans-serif" size="2">debt securities (i.e., debt securities that may be converted at either a stated </font><font face="Arial, Helvetica, sans-serif" size="2">price or stated rate into underlying shares of common stock),
including </font><font face="Arial, Helvetica, sans-serif" size="2">synthetic convertible debt securities (i.e., instruments created through a </font><font face="Arial, Helvetica, sans-serif" size="2">combination of separate securities that possess
the two principal </font><font face="Arial, Helvetica, sans-serif" size="2">characteristics of a traditional convertible security, such as an income-</font><font face="Arial, Helvetica, sans-serif" size="2">producing security and the right to
acquire an equity security) and </font><font face="Arial, Helvetica, sans-serif" size="2">contingent convertible securities; and bank certificates of deposit, fixed time </font><font face="Arial, Helvetica, sans-serif" size="2">deposits and bankers'
acceptances. The rate of interest on an income-</font><font face="Arial, Helvetica, sans-serif" size="2">producing security may be fixed, floating or variable. Certain corporate
</font><font face="Arial, Helvetica, sans-serif" size="2">income-producing securities, such as convertible bonds, also may include </font><font face="Arial, Helvetica, sans-serif" size="2">the right to participate in equity appreciation, and PIMCO
will generally </font><font face="Arial, Helvetica, sans-serif" size="2">evaluate those instruments based primarily on their debt characteristics. The </font><font face="Arial, Helvetica, sans-serif" size="2">Fund may invest in debt securities of
stressed issuers. Subject to the </font><font face="Arial, Helvetica, sans-serif" size="2">investment limitations described under "Credit Quality" above, at any given </font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
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<td align="right" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">December 21, 2017 | <b>PROSPECTUS</b></FONT></p> </td>
<td align="right" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">5</FONT></p> </td> </tr> </table><hr style="size:3;color:#999999;width:100%;">
<DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p>
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<td align="left" width="29.5%" colspan="3"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>PIMCO Dynamic Income Fund</b></FONT></p> </td> </tr>
<tr>
<td align="left" width="29.5%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2">time and from time to time, substantially all of
the Fund's portfolio may </font><font face="Arial, Helvetica, sans-serif" size="2">consist of below investment grade securities and/or mortgage-related or </font><font face="Arial, Helvetica, sans-serif" size="2">other types of asset backed
securities. The Fund may invest in any level of </font><font face="Arial, Helvetica, sans-serif" size="2">the capital structure of an issuer of mortgage-backed or asset-backed </font><font face="Arial, Helvetica, sans-serif" size="2">securities,
including the equity or "first loss" tranche. </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund may invest without limit in securities of U.S. issuers and without limit in securities of foreign (non-U.S.) issuers, securities
traded principally outside of the United States, and securities denominated in currencies other than the U.S. dollar. The Fund may invest without limit in investment grade sovereign debt denominated in the relevant country's local currency with less
than 1 year remaining to maturity ("short-term investment grade sovereign debt"), including short-term investment grade sovereign debt issued by emerging market issuers. The Fund may invest up to 40% of its total assets in securities and instruments
that are economically tied to "emerging market" countries other than investments in short-term investment grade sovereign debt issued by emerging market issuers, where as noted above there is no limit. The Fund may also invest directly in foreign
currencies, including local emerging market currencies.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund may normally invest up to 40% of its total assets in
bank loans (including, among others, senior loans, delayed funding loans, revolving credit facilities and loan participations and assignments). The Fund will not normally invest more than 10% of its total assets in 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 two principal characteristics of a traditional convertible security, i.e., an income-producing security and the right to acquire an equity security). The Fund may also invest in preferred securities.</font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">As a matter of fundamental policy, the Fund will normally invest at least 25% of its total assets in privately-issued (commonly known as
"non-agency") mortgage-related securities.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">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.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund will not normally invest directly
in common stocks of operating companies. However, the Fund may own and hold common stocks of operating companies in its portfolio from time to time in connection with a corporate action or the restructuring of a debt instrument, or through the
conversion of a convertible security held by the Fund.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund may invest in securities that have not been registered
for public </font><font face="Arial, Helvetica, sans-serif" size="2">sale in the U.S. or relevant non-U.S. jurisdictions, including without limit </font><font face="Arial, Helvetica, sans-serif" size="2">securities eligible for purchase and sale
pursuant to Rule 144A under the </font><font face="Arial, Helvetica, sans-serif" size="2">Securities Act of 1933, as amended (the "1933 Act"), or relevant provisions </font><font face="Arial, Helvetica, sans-serif" size="2">of applicable non-U.S.
law, and other securities issued in private </font><font face="Arial, Helvetica, sans-serif" size="2">placements. The Fund may also invest in securities of other investment </font><font face="Arial, Helvetica, sans-serif" size="2">companies,
including, without limit, exchange-traded funds ("ETFs"), and </font><font face="Arial, Helvetica, sans-serif" size="2">may invest in foreign ETFs. The Fund may invest in real estate investment
</font><font face="Arial, Helvetica, sans-serif" size="2">trusts ("REITs"). The Fund may invest in securities of companies with any </font><font face="Arial, Helvetica, sans-serif" size="2">market capitalization, including small and medium
capitalizations. </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund may invest without limit in illiquid securities (i.e., securities that cannot be disposed
of within seven days in the ordinary course of business at approximately the value at which the Fund has valued the securities).</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund may make investments in debt instruments and
other securities directly or through one or more wholly-owned and controlled subsidiaries formed by the Fund (each, a &#8220;Subsidiary&#8221;). Each Subsidiary may invest, for example, in whole loans or in 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&#8217;s investment exposure. The allocation of the Fund&#8217;s portfolio in a Subsidiary will vary over time and might not always include all of the different types of investments described
herein.</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b>Leverage<br> </b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund may obtain leverage through
reverse repurchase agreements, dollar rolls or borrowings, such as through bank loans or commercial paper 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, credit default swaps, futures and forward contracts (including foreign currency exchange contracts), total return swaps and other derivative transactions, loans of portfolio securities, short sales and when-issued, delayed
delivery and forward commitment transactions. Although it has no current intention to do so, the Fund may also determine to issue preferred shares or other types of senior securities to add leverage to its portfolio.</font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Under normal market conditions, the Fund will limit its use of leverage from any combination of (i) reverse repurchase agreements or
dollar roll transactions (whether or not these instruments are covered as discussed below), (ii), borrowings (i.e., loans or lines of credit from banks or other credit facilities), (iii) any future issuance of preferred shares, and (iv) to the
extent described below, credit default swaps, other swap agreements and futures contracts (whether or not these instruments are covered with segregated assets as discussed below) such that the assets attributable to the use of such leverage will not
exceed 50% of the Fund's total assets (including, for purposes of the 50% limit, the amounts of leverage obtained through the use of such instruments) (the "50% policy"). For these purposes, assets attributable to the use of leverage from credit
default swaps, other swap agreements and futures contracts will be determined based on the current market value of the instrument if it is cash settled or based on the notional value of the instrument if it is not cash settled. In addition, assets
attributable to credit default swaps, other swap agreements or futures contracts will not be counted towards the 50% policy to the extent that the Fund owns offsetting positions or enters into offsetting transactions.</font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Depending upon market conditions and other factors, the Fund may or may </font><font face="Arial, Helvetica, sans-serif" size="2">not
determine to add leverage following an offering to maintain or increase </font><font face="Arial, Helvetica, sans-serif" size="2">the total amount of leverage (as a percentage of the Fund's total assets) </font><font
face="Arial, Helvetica, sans-serif" size="2">that the Fund currently maintains, taking into account the additional assets </font><font face="Arial, Helvetica, sans-serif" size="2">raised through the issuance of Common Shares in such offering. The
Fund </font><font face="Arial, Helvetica, sans-serif" size="2">utilizes certain kinds of leverage, such as reverse repurchase agreements </font><font face="Arial, Helvetica, sans-serif" size="2">and credit default swaps, opportunistically and may
choose to increase or </font><font face="Arial, Helvetica, sans-serif" size="2">decrease, or eliminate entirely, its use of such leverage over time and from </font><font face="Arial, Helvetica, sans-serif" size="2">time to time based on PIMCO's
assessment of the yield curve environment, </font><font face="Arial, Helvetica, sans-serif" size="2">interest rate trends, market conditions and other factors. If the Fund </font><font face="Arial, Helvetica, sans-serif" size="2">determines to add
leverage following an offering, it is not possible to </font><font face="Arial, Helvetica, sans-serif" size="2">predict with accuracy the precise amount of leverage that would be added, </font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
<table width="100%">
<tr>
<td align="left" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">6 &#160;&#160;&#160;&#160; </FONT></p> </td>
<td align="left" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><b>PROSPECTUS</b> | PIMCO Dynamic Income Fund &#160;&#160;&#160;&#160; </FONT></p> </td> </tr>
</table><hr style="size:3;color:#999999;width:100%;"> <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;
</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
<tr>
<td align="right" width="29.5%" colspan="3"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
<tr>
<td align="right" width="29.5%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2">in part because it is not possible to predict
the number of Common Shares </font><font face="Arial, Helvetica, sans-serif" size="2">that ultimately will be sold in an offering or series of offerings. To the extent </font><font face="Arial, Helvetica, sans-serif" size="2">that the Fund does not
add additional leverage following an offering, the </font><font face="Arial, Helvetica, sans-serif" size="2">Fund's total amount of leverage as a percentage of its total assets will </font><font face="Arial, Helvetica, sans-serif" size="2">decrease,
which could result in a reduction of investment income available </font><font face="Arial, Helvetica, sans-serif" size="2">for distribution to holders of the Fund's Common Shares ("Common
</font><font face="Arial, Helvetica, sans-serif" size="2">Shareholders"). </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The net proceeds the Fund obtains from reverse repurchase agreements or other forms of leverage utilized, if
any, will be invested in accordance with the Fund's investment objectives and policies as described in this prospectus and any prospectus supplement. So long as the rate of return, net of applicable Fund expenses, on the debt obligations and other
investments purchased by the Fund exceeds the costs to the Fund of the leverage it utilizes, the investment of the Fund's net 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.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">The 1940 Act generally prohibits the Fund from engaging in most forms of </font><font face="Arial, Helvetica, sans-serif" size="2">leverage representing indebtedness other than preferred shares (including
</font><font face="Arial, Helvetica, sans-serif" size="2">the use of reverse repurchase agreements, dollar rolls, bank loans, </font><font face="Arial, Helvetica, sans-serif" size="2">commercial paper or other credit facilities, credit default
swaps, total return </font><font face="Arial, Helvetica, sans-serif" size="2">swaps and other derivative transactions, loans of portfolio securities, short </font><font face="Arial, Helvetica, sans-serif" size="2">sales and when-issued, delayed
delivery and forward commitment </font><font face="Arial, Helvetica, sans-serif" size="2">transactions, to the extent that these instruments are not covered as </font><font face="Arial, Helvetica, sans-serif" size="2">described below) unless
immediately after the issuance of the leverage the </font><font face="Arial, Helvetica, sans-serif" size="2">Fund has satisfied the asset coverage test with respect to senior securities
</font><font face="Arial, Helvetica, sans-serif" size="2">representing indebtedness prescribed by the 1940 Act; that is, the value of </font><font face="Arial, Helvetica, sans-serif" size="2">the Fund's total assets less all liabilities and
indebtedness not represented </font><font face="Arial, Helvetica, sans-serif" size="2">by senior securities (for these purposes, "total net assets") is at least 300% </font><font face="Arial, Helvetica, sans-serif" size="2">of the senior securities
representing indebtedness (effectively limiting the </font><font face="Arial, Helvetica, sans-serif" size="2">use of leverage through senior securities representing indebtedness to 33 </font><font face="Arial, Helvetica, sans-serif" size="2">1/3% of
the Fund's total net assets, including assets attributable to such </font><font face="Arial, Helvetica, sans-serif" size="2">leverage). In addition, the Fund is not permitted to declare any cash </font><font
face="Arial, Helvetica, sans-serif" size="2">dividend or other distribution on its Common Shares unless, at the time of </font><font face="Arial, Helvetica, sans-serif" size="2">such declaration, this asset coverage test is satisfied. The Fund may
(but is </font><font face="Arial, Helvetica, sans-serif" size="2">not required to) cover its commitments under reverse repurchase </font><font face="Arial, Helvetica, sans-serif" size="2">agreements, dollar rolls, derivatives and certain other
instruments by the </font><font face="Arial, Helvetica, sans-serif" size="2">segregation of liquid assets, or by entering into offsetting transactions or </font><font face="Arial, Helvetica, sans-serif" size="2">owning positions covering its
obligations. To the extent that certain of these </font><font face="Arial, Helvetica, sans-serif" size="2">instruments are so covered, they will not be considered "senior securities" </font><font face="Arial, Helvetica, sans-serif" size="2">under
the 1940 Act and therefore will not be subject to the 1940 Act 300% </font><font face="Arial, Helvetica, sans-serif" size="2">asset coverage requirement otherwise applicable to forms of senior
</font><font face="Arial, Helvetica, sans-serif" size="2">securities representing indebtedness used by the Fund. However, reverse </font><font face="Arial, Helvetica, sans-serif" size="2">repurchase agreements and other such instruments, even if
covered, </font><font face="Arial, Helvetica, sans-serif" size="2">represent a form of economic leverage and create special risks. The use of </font><font face="Arial, Helvetica, sans-serif" size="2">these forms of leverage increases the volatility
of the Fund's investment </font><font face="Arial, Helvetica, sans-serif" size="2">portfolio and could result in larger losses to Common Shareholders than if </font><font face="Arial, Helvetica, sans-serif" size="2">these strategies were not used.
See "Principal Risks of the Fund&#8212;Leverage </font><font face="Arial, Helvetica, sans-serif" size="2">Risk." To the extent that the Fund engages in borrowings, it may prepay a </font><font face="Arial, Helvetica, sans-serif" size="2">portion of
the principal amount of the borrowing to the extent necessary in </font><font face="Arial, Helvetica, sans-serif" size="2">order to maintain the required asset coverage. Failure to maintain certain </font><font
face="Arial, Helvetica, sans-serif" size="2">asset coverage requirements could result in an event of default. </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2">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 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 assurance that the Fund's leveraging strategies will result in a higher yield on your Common
Shares. When leverage is used, the NAV and market price of the Common Shares and the yield to Common Shareholders will be more volatile. See "Principal Risks of the Fund&#8212;Leverage Risk." In addition, dividend, interest and other costs and
expenses borne by the Fund with respect to its use of reverse repurchase agreements, credit default swaps, dollar rolls, borrowings or any other forms of leverage are borne by the Common Shareholders and result in a reduction of the NAV of the
Common Shares. In addition, because the fees received by the Investment Manager are based on the Fund's average daily "total managed assets" (including any assets attributable to any reverse repurchase agreements, dollar rolls, borrowings and
preferred shares that may be outstanding) minus accrued liabilities (other than liabilities representing reverse repurchase agreements, dollar rolls and borrowings), the Investment Manager has a financial incentive for the Fund to use certain forms
of leverage (e.g., reverse repurchase agreements, dollar rolls, borrowings and preferred shares), which may create a conflict of interest between the Investment Manager, on the one hand, and the Common Shareholders, on the other hand.</font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Please see "Use of Leverage" and "Principal Risks of the Fund&#8212;Leverage Risk" in the body of this prospectus for additional
information regarding leverage and related risks.</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b>Investment Manager<br> </b></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">Pacific Investment Management Company LLC ("PIMCO" or the "Investment Manager") serves as the investment manager of the Fund. Subject to the supervision of the Board of Trustees of the Fund (the "Board").
PIMCO is responsible for managing the investment activities of the Fund and the Fund's business affairs and other administrative matters. Dan Ivascyn, Alfred Murata and Joshua Anderson are jointly and primarily responsible for the day-to-day
management of the Fund.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Investment Manager receives an annual fee from the Fund, payable monthly, in an amount
equal to 1.150% of the Fund's average daily total managed assets. Total managed assets includes total assets of the Fund (including any assets attributable to any reverse repurchase agreements, dollar rolls, borrowings and preferred shares that may
be outstanding) minus accrued liabilities (other than liabilities representing reverse repurchase agreements, dollar rolls and borrowings). For purposes of calculating total managed assets, the Fund's derivative investments will be valued based on
their market value.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">PIMCO is located at 650 Newport Center Drive, Newport Beach, CA, </font><font
face="Arial, Helvetica, sans-serif" size="2">92660. Organized in 1971, PIMCO provides investment management and </font><font face="Arial, Helvetica, sans-serif" size="2">advisory services to private accounts of institutional and individual clients
</font><font face="Arial, Helvetica, sans-serif" size="2">and to registered investment companies. PIMCO is a majority-owned </font><font face="Arial, Helvetica, sans-serif" size="2">indirect subsidiary of Allianz SE, a publicly traded European
insurance and </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
<table width="100%">
<tr>
<td align="right" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">December 21, 2017 | <b>PROSPECTUS</b></FONT></p> </td>
<td align="right" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">7</FONT></p> </td> </tr> </table><hr style="size:3;color:#999999;width:100%;">
<DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
<tr>
<td align="left" width="29.5%" colspan="3"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>PIMCO Dynamic Income Fund</b></FONT></p> </td> </tr>
<tr>
<td align="left" width="29.5%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2">financial services company. As of September 30,
2017, PIMCO had </font><font face="Arial, Helvetica, sans-serif" size="2">approximately $1.68 trillion in assets under management. </font></p>
<p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b>Dividends and Distributions<br> </b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund makes regular monthly cash
distributions to Common Shareholders at a rate based upon the past and projected net income of the Fund. Subject to applicable law, the Fund may fund a portion of its distributions with gains from the sale of portfolio securities and other sources.
The dividend rate that the Fund pays on its Common Shares may vary as portfolio and market conditions change, and will depend on a number of factors, including without limit the amount of the Fund's undistributed net investment income and net short-
and long-term capital gains, as well as the costs of any leverage obtained by the Fund (including interest or other expenses on any reverse repurchase agreements, credit default swaps, dollar rolls and borrowings and dividends payable on any
preferred shares issued by the Fund). As portfolio and market conditions change, the rate of distributions on the Common Shares and the Fund's dividend policy could change. For a discussion of factors that may cause the Fund's income and capital
gains (and therefore the dividend) to vary, see "Principal Risks of the Fund." There can be no assurance that a change in market conditions or other factors will not result in a change in the Fund distribution rate or that the rate will be
sustainable in the future.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund generally distributes each year all of its net investment income and net
short-term capital gains. In addition, at least annually, the Fund generally distributes net realized long-term capital gains not previously distributed, if any. The net investment income of the Fund consists of all income (other than net short-term
and long-term capital gains) less all expenses of the Fund (after it pays accrued dividends on any outstanding preferred shares). The Fund may distribute less than the entire amount of net investment income earned in a particular period. The
undistributed net investment income would be available to supplement future distributions. As a result, the distributions paid by the Fund for any particular monthly period may be more or less than the amount of net investment income actually earned
by the Fund during the period. Undistributed net investment income will be additive to the Fund's NAV and, correspondingly, distributions from undistributed net investment income will be deducted from the Fund's NAV.</font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The tax treatment and characterization of the Fund's distributions may vary
</font><font face="Arial, Helvetica, sans-serif" size="2">significantly from time to time because of the varied nature of the Fund's </font><font face="Arial, Helvetica, sans-serif" size="2">investments. The Fund may enter into opposite sides of
interest rate swap </font><font face="Arial, Helvetica, sans-serif" size="2">and other derivatives for the principal purpose of generating distributable </font><font face="Arial, Helvetica, sans-serif" size="2">gains on the one side (characterized
as ordinary income for tax purposes) </font><font face="Arial, Helvetica, sans-serif" size="2">that are not part of the Fund's duration or yield curve management </font><font face="Arial, Helvetica, sans-serif" size="2">strategies ("paired swap
transactions"), and with a substantial possibility </font><font face="Arial, Helvetica, sans-serif" size="2">that the Fund will experience a corresponding capital loss and decline in </font><font face="Arial, Helvetica, sans-serif" size="2">NAV with
respect to the opposite side transaction (to the extent it does not </font><font face="Arial, Helvetica, sans-serif" size="2">have corresponding offsetting capital gains). Consequently, Common
</font><font face="Arial, Helvetica, sans-serif" size="2">Shareholders may receive distributions and owe tax, at a time when their </font><font face="Arial, Helvetica, sans-serif" size="2">investment in the Fund has declined in value, which tax may
be at ordinary </font><font face="Arial, Helvetica, sans-serif" size="2">income rates, and which may be economically similar to a taxable return of </font><font face="Arial, Helvetica, sans-serif" size="2">capital. The tax treatment of certain
derivatives in which the Fund invests </font><font face="Arial, Helvetica, sans-serif" size="2">may be unclear and thus subject to recharacterization. Any </font><font face="Arial, Helvetica, sans-serif" size="2">recharacterization of payments made
or received by the Fund pursuant to </font><font face="Arial, Helvetica, sans-serif" size="2">derivatives potentially could affect the amount, timing or character of Fund </font><font face="Arial, Helvetica, sans-serif" size="2">distributions. In
addition, the tax treatment of such investment strategies </font><font face="Arial, Helvetica, sans-serif" size="2">may be changed by regulation or otherwise. </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">To the extent required by the 1940 Act and other applicable laws, absent an exemption, a notice will accompany each monthly distribution with respect to the estimated source (as between net income and
gains) of the distribution made. If the Fund estimates that a portion of one of its dividend distributions may be comprised of amounts from sources other than net income, the Fund will notify shareholders of record of the estimated composition of
such distribution through a Section 19 Notice. For these purposes, the Fund estimates the source or sources from which a distribution is paid, to the close of the period as of which it is paid, in reference to its internal accounting records and
related accounting practices. If, based on such accounting records and practices,&#160;it is estimated that a particular distribution does not include capital gains or paid-in surplus or other capital sources, a Section 19 Notice generally would not
be issued. It is important to note that differences exist between the Fund's daily internal accounting records and practices, the Fund's financial statements presented in accordance with U.S. GAAP, and recordkeeping practices under income tax
regulations. For instance, the Fund's internal accounting records and practices may take into account, among other factors, tax-related characteristics of certain sources of distributions that differ from treatment under U.S. GAAP. Examples of such
differences may include, among others, the treatment of paydowns on mortgage-backed securities purchased at a discount and periodic payments under interest rate swap contracts. Accordingly, among other consequences, it is possible that the Fund may
not issue a Section 19 Notice in situations where the Fund's financial statements prepared later and in accordance with U.S. GAAP and/or the final tax character of those distributions might later report that the sources of those distributions
included capital gains and/or a return of capital.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The tax characterization of the Fund's distributions made in a
taxable year </font><font face="Arial, Helvetica, sans-serif" size="2">cannot finally be determined until at or after the end of such taxable year. </font><font face="Arial, Helvetica, sans-serif" size="2">As a result, there is a possibility that
the Fund may make total distributions </font><font face="Arial, Helvetica, sans-serif" size="2">during a taxable year in an amount that exceeds the Fund's net investment </font><font face="Arial, Helvetica, sans-serif" size="2">income and net
realized capital gains for the relevant year (including as </font><font face="Arial, Helvetica, sans-serif" size="2">reduced by any capital loss carry-forwards). For example, the Fund may
</font><font face="Arial, Helvetica, sans-serif" size="2">distribute amounts early in the year that are derived from short-term capital </font><font face="Arial, Helvetica, sans-serif" size="2">gains, but incur net short-term capital losses later in
the year, thereby </font><font face="Arial, Helvetica, sans-serif" size="2">offsetting short-term capital gains out of which the Fund has already made </font><font face="Arial, Helvetica, sans-serif" size="2">distributions. In such a situation, the
amount by which the Fund's total </font><font face="Arial, Helvetica, sans-serif" size="2">distributions exceed net investment income and net realized capital gains </font><font face="Arial, Helvetica, sans-serif" size="2">would generally be treated
as a tax-free return of capital up to the amount </font><font face="Arial, Helvetica, sans-serif" size="2">of a shareholder's tax basis in his or her Common Shares, with any amounts </font><font face="Arial, Helvetica, sans-serif" size="2">exceeding
such basis treated as gain from the sale of Common Shares. In </font><font face="Arial, Helvetica, sans-serif" size="2">general terms, a return of capital would occur where the Fund distribution </font><font
face="Arial, Helvetica, sans-serif" size="2">(or portion thereof) represents a return of a portion of your investment, </font><font face="Arial, Helvetica, sans-serif" size="2">rather than net income or capital gains generated from your investment
</font><font face="Arial, Helvetica, sans-serif" size="2">during a particular period. Although return of capital distributions are not </font><font face="Arial, Helvetica, sans-serif" size="2">taxable, such distributions would reduce the basis of a
shareholder's </font><font face="Arial, Helvetica, sans-serif" size="2">Common Shares and therefore may increase a shareholder's capital gains, </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
<table width="100%">
<tr>
<td align="left" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">8 &#160;&#160;&#160;&#160; </FONT></p> </td>
<td align="left" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><b>PROSPECTUS</b> | PIMCO Dynamic Income Fund &#160;&#160;&#160;&#160; </FONT></p> </td> </tr>
</table><hr style="size:3;color:#999999;width:100%;"> <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;
</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
<tr>
<td align="right" width="29.5%" colspan="3"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
<tr>
<td align="right" width="29.5%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2">or decrease a shareholder's capital loss, upon a
sale of Common Shares, </font><font face="Arial, Helvetica, sans-serif" size="2">thereby potentially increasing a shareholder's tax liability. The Fund will </font><font face="Arial, Helvetica, sans-serif" size="2">prepare and make available to
shareholders detailed tax information with </font><font face="Arial, Helvetica, sans-serif" size="2">respect to the Fund's distributions annually. See "Tax Matters." </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The 1940 Act
currently limits the number of times the Fund may distribute long-term capital gains in any tax year, which may increase the variability of the Fund's distributions and result in certain distributions being comprised more or less heavily than others
of long-term capital gains currently eligible for favorable income tax rates.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Unless a Common Shareholder elects to
receive distributions in cash, all distributions of Common Shareholders whose shares are registered with the plan agent will be automatically reinvested in additional Common Shares of the Fund under the Fund's Dividend Reinvestment Plan. See
"Distributions" and "Dividend Reinvestment Plan."</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b>Custodian and Transfer Agent</b></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">State Street Bank and Trust Company serves as custodian of the Fund's assets and also provides certain fund accounting and sub-administrative services to the Investment Manager on behalf of the Fund.
American Stock Transfer &#38; Trust Company, LLC serves as the Fund's transfer agent and dividend disbursement agent. See "Custodian and Transfer Agent."</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font
face="Arial, Helvetica, sans-serif" size="3"><b>Listing<br> </b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund's outstanding Common Shares are listed on the NYSE under the trading or "ticker" symbol PDI, as will be the
Common Shares offered in this prospectus, subject to notice of issuance.</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b>Market Price of Shares</b></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">Shares of closed-end investment companies frequently trade at prices lower than NAV. Shares of closed-end investment companies have during some periods traded at prices higher than NAV and during other
periods traded at prices lower than NAV. The Fund cannot assure you that Common Shares will trade at a price equal to or higher than NAV in the future. NAV will be reduced immediately following an offering by any sales load and/ or commissions and
the amount of offering expenses paid or reimbursed by the Fund. See "Use of Proceeds." In addition to NAV, market price may be affected by factors relating to the Fund such as dividend levels and stability (which will in turn be affected by Fund
expenses, including the costs of any leverage used by the Fund, levels of interest payments by the Fund's portfolio holdings, levels of appreciation/depreciation of the Fund's portfolio holdings, regulation affecting the timing and character of Fund
distributions and other factors), portfolio credit quality, liquidity, call protection, market supply and demand and similar factors relating to the Fund's portfolio holdings. See "Use of Leverage," "Principal Risks of the Fund," "Description of
Shares" and "Repurchase of Common Shares; Conversion to Open-End Fund" in this prospectus, and see "Repurchase of Common Shares; Conversion to Open-End Fund" in the Statement of Additional Information. The Common Shares are designed for long-term
investors and should not be treated as trading vehicles.</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b>Principal Risks of the Fund<br> </b></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">The following is a summary of the principal risks associated with an investment in Common Shares of the Fund. Investors should also refer to "Principal Risks of the Fund" in this prospectus and
"Investment Objectives and Policies" in the Statement of Additional Information for a more detailed explanation of these and other risks associated with investing in the Fund.</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font
face="Arial, Helvetica, sans-serif" size="3"><b><b>Market Discount Risk</b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">As with any stock, the price of the Fund's Common Shares will fluctuate with market conditions and other
factors. If you sell your Common Shares, the price received may be more or less than your original investment. Net asset value of the Fund's Common Shares will be reduced immediately following an offering by any sales load and/or commissions and
offering expenses paid or reimbursed by the Fund in connection with such offering. The completion of an offering may result in an immediate dilution of the NAV per Common Share for all existing Common Shareholders. The Common Shares are designed for
long-term investors and should not be treated as trading vehicles. Shares of closed-end management investment companies frequently trade at a discount from their NAV. The Common Shares may trade at a price that is less than the offering price for
Common Shares issued pursuant to an offering. This risk may be greater for investors who sell their Common Shares relatively shortly after completion of an offering.</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font
face="Arial, Helvetica, sans-serif" size="3"><b><b>Market Risk</b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The market price of securities owned by the Fund may go up or down, sometimes rapidly or unpredictably.
Securities may decline in value due to factors affecting securities markets generally or particular industries 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, changes in interest or currency rates, adverse changes to credit markets or adverse investor sentiment
generally. The value of a security may also decline due to factors that affect a particular industry or industries, such as labor shortages or increased production costs and competitive conditions within an industry. During a general downturn in the
securities markets, multiple asset classes may decline in value simultaneously. Equity securities generally have greater price volatility than fixed income securities. Credit ratings downgrades may also negatively affect securities held by the Fund.
Even when markets perform well, there is no assurance that the investments held by the Fund will increase in value along with the broader market. In addition, market risk includes the risk that geopolitical events will disrupt the economy on a
national or global level. For instance, terrorism, market manipulation, government defaults, government shutdowns, political changes or diplomatic developments, and natural/environmental disasters can all negatively impact the securities markets,
which could cause the Fund to lose value. Any market disruptions could also prevent the Fund from executing advantageous investment decisions in a timely manner. To the extent the Fund focuses its investments in a region enduring geopolitical market
disruption, it will face higher risks of loss. Thus, investors should closely monitor current market conditions to determine whether a specific Fund meets their individual financial needs and tolerance for risk.</font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
<table width="100%">
<tr>
<td align="right" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">December 21, 2017 | <b>PROSPECTUS</b></FONT></p> </td>
<td align="right" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">9</FONT></p> </td> </tr> </table><hr style="size:3;color:#999999;width:100%;">
<DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
<tr>
<td align="left" width="29.5%" colspan="3"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>PIMCO Dynamic Income Fund</b></FONT></p> </td> </tr>
<tr>
<td align="left" width="29.5%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2">Current market conditions may pose heightened
risks with respect to funds that invest in fixed income securities. As discussed more under "&#8212;Interest Rate Risk," interest rates in the U.S. are near historically low levels. However, continued economic recovery, the end of the Federal
Reserve Board's quantitative easing program, and an increased likelihood of a rising interest rate environment increase the risk that interest rates will continue to rise in the near future. Any further interest rate increases in the future could
cause the value of the Fund to decrease. As such, fixed income securities markets may experience heightened levels of interest rate, volatility and liquidity risk.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">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.&#160;</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Asset Allocation
Risk<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">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. PIMCO employs an active approach to allocation among multiple fixed income sectors, but there is no guarantee that such allocation techniques will produce the desired results. It is possible that
PIMCO will focus on an investment that performs poorly or underperforms other investments under various market conditions. You could lose money on your investment in the Fund as a result of these allocation decisions.</font></p>
<p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Management Risk<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">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, but there can be no guarantee that these decisions
will produce the desired results. Certain securities or other instruments in which the Fund seeks to invest may not be available in the quantities desired. In addition, regulatory restrictions, actual or potential conflicts of interest or other
considerations may cause PIMCO to restrict or prohibit participation in certain investments. In such circumstances, PIMCO or the individual portfolio managers may determine to purchase other securities or instruments as substitutes. Such substitute
securities or instruments may not perform as intended, which could result in losses to the Fund. To the extent the Fund employs strategies targeting perceived pricing inefficiencies, arbitrage strategies or similar strategies, it is subject to the
risk that the pricing or valuation of the securities and instruments involved in such strategies may change unexpectedly, which may result in reduced returns or losses to the Fund. Additionally, legislative, regulatory, or tax restrictions, policies
or developments may affect the investment techniques available to PIMCO and each individual portfolio manager in connection with managing the Fund and may also adversely affect the ability of the Fund to achieve its investment objectives. There also
can be no assurance that all of the personnel of PIMCO will continue to be associated with PIMCO for any length of time. The loss of the services of one or more key employees of PIMCO could have an adverse impact on the Fund's ability to realize its
investment objectives.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">In addition, the Fund may rely on various third-party sources to calculate its net asset value.
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 net asset value, and such net asset value calculation issues may result in inaccurately calculated net asset values, delays in net asset value calculation and/or the inability to calculate net asset values over extended periods.
The Fund may be unable to recover any losses associated with such failures.</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Issuer Risk<br> </b></b></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The value of a security may decline for a number of reasons that directly relate to the issuer, such as management performance, financial
leverage and 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 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.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p>
<p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Interest Rate Risk<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Interest rate risk is the risk that
fixed income securities and other instruments in the Fund's portfolio will decline in value because of a change in interest rates. As nominal interest rates rise, the value of certain fixed income securities held by the Fund is likely to decrease. A
nominal interest rate can be described as the sum of a real interest rate and an expected inflation rate. Interest rate changes can be sudden and unpredictable, and the Fund may lose money as a result of movements in interest rates. The Fund may not
be able to hedge against changes in interest rates or may choose not to do so for cost or other reasons. In addition, any hedges may not work as intended.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">A wide variety of factors can cause interest rates to rise (e.g., central bank monetary policies, inflation rates, general economic conditions). <b>This risk may be particularly acute in the current
market environment because market interest rates are currently near historically low levels.</b> This, combined with recent economic recovery, the Federal Reserve Board's conclusion of its quantitative easing program, and increases in federal funds
interest rates in 2015, 2016 and 2017 which had not occurred since 2006, could potentially increase the probability of an upward interest rate environment in the near future. To the extent the Federal Reserve Board continues to raise interest rates,
there is a risk that rates across the financial system may rise.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Fixed income securities with longer durations tend to
be more sensitive to </font><font face="Arial, Helvetica, sans-serif" size="2">changes in interest rates, usually making them more volatile than securities </font><font face="Arial, Helvetica, sans-serif" size="2">with shorter durations. Duration is
a measure used to determine the </font><font face="Arial, Helvetica, sans-serif" size="2">sensitivity of a security's price to changes in interest rates that incorporates </font><font face="Arial, Helvetica, sans-serif" size="2">a security's yield,
coupon, final maturity and call features, among other </font><font face="Arial, Helvetica, sans-serif" size="2">characteristics. Duration is useful primarily as a measure of the sensitivity of
</font><font face="Arial, Helvetica, sans-serif" size="2">a fixed income security's market price to interest rate (i.e. yield) movements. </font><font face="Arial, Helvetica, sans-serif" size="2">All other things remaining equal, for each one
percentage point increase in </font><font face="Arial, Helvetica, sans-serif" size="2">interest rates, the value of a portfolio of fixed income investments would </font><font face="Arial, Helvetica, sans-serif" size="2">generally be expected to
decline by one percent for every year of the </font><font face="Arial, Helvetica, sans-serif" size="2">portfolio's average duration above zero. For example, the value of a </font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
<table width="100%">
<tr>
<td align="left" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">10 &#160;&#160;&#160;&#160; </FONT></p> </td>
<td align="left" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><b>PROSPECTUS</b> | PIMCO Dynamic Income Fund &#160;&#160;&#160;&#160; </FONT></p> </td> </tr>
</table><hr style="size:3;color:#999999;width:100%;"> <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;
</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
<tr>
<td align="right" width="29.5%" colspan="3"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
<tr>
<td align="right" width="29.5%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2">portfolio of fixed income securities with an
average duration of eight years </font><font face="Arial, Helvetica, sans-serif" size="2">would generally be expected to decline by approximately 8% if interest </font><font face="Arial, Helvetica, sans-serif" size="2">rates rose by one percentage
point. </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Variable and floating rate securities generally are less sensitive to interest rate changes but 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.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">During
periods of very low or negative interest rates, the Fund may be unable to maintain positive returns. Interest rates in the United States and many parts of the world, including certain European countries, are at or near historically low levels.
Certain European countries have recently experienced negative interest rates on certain fixed income instruments. 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.</font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Measures such as average duration may not accurately reflect the true interest rate sensitivity of the Fund. This is especially
the case if the Fund consists of securities with widely varying durations. Therefore, if the Fund has an average duration that suggests a certain level of interest rate risk, the Fund may in fact be subject to greater interest rate risk than the
average would suggest. This risk is greater to the extent the Fund uses leverage or derivatives in connection with the management of the Fund.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">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, meaning increased sensitivity in prices in response to rising 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.</font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Rising interest rates may result in a decline in value of the Fund's fixed
</font><font face="Arial, Helvetica, sans-serif" size="2">income investments and in periods of volatility. Further, while U.S. bond </font><font face="Arial, Helvetica, sans-serif" size="2">markets have steadily grown over the past three decades,
dealer "market </font><font face="Arial, Helvetica, sans-serif" size="2">making" ability has remained relatively stagnant. As a result, dealer </font><font face="Arial, Helvetica, sans-serif" size="2">inventories of certain types of bonds and
similar instruments, which provide </font><font face="Arial, Helvetica, sans-serif" size="2">a core indication of the ability of financial intermediaries to "make </font><font face="Arial, Helvetica, sans-serif" size="2">markets," are at or near
historic lows in relation to market size. Because </font><font face="Arial, Helvetica, sans-serif" size="2">market makers provide stability to a market through their intermediary </font><font face="Arial, Helvetica, sans-serif" size="2">services,
the significant reduction in dealer inventories could potentially lead </font><font face="Arial, Helvetica, sans-serif" size="2">to decreased liquidity and increased volatility in the fixed income markets. </font><font
face="Arial, Helvetica, sans-serif" size="2">Such issues may be exacerbated during periods of economic uncertainty. All </font><font face="Arial, Helvetica, sans-serif" size="2">of these factors, collectively and/or individually, could cause the
Fund to lose </font><font face="Arial, Helvetica, sans-serif" size="2">value. </font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Credit Risk</b></b></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund could lose money if the issuer or guarantor of a debt security (including a security purchased with securities lending
collateral), or the counterparty to a derivatives contract, 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 downgrade of the credit of a security held by the Fund may decrease its value. Securities are subject to varying degrees of credit risk, which
are often reflected in credit ratings. 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 holds securities with widely varying credit ratings. Therefore, if
the Fund has an average credit rating that suggests a certain credit quality, the Fund may in fact be subject to greater credit risk than the average would suggest. This risk is greater to the extent the Fund uses leverage or derivatives in
connection with the management of the Fund. Municipal bonds are subject to the risk that litigation, legislation or other political events, local business or economic conditions, or the bankruptcy of the issuer could have a significant effect on an
issuer's ability to make payments of principal and/or interest.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p>
<p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Mortgage-Related and Other Asset-Backed Securities Risk</b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund
may invest in a variety of mortgage-related and other asset-backed securities issued by government agencies or other governmental entities or by private originators or issuers.</font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The mortgage-related securities in which the Fund may invest include, without limitation, mortgage pass-through securities,
collateralized mortgage obligations ("CMOs"), commercial or residential mortgage-backed securities, mortgage dollar rolls, CMO residuals, stripped mortgage-backed securities ("SMBSs") and other securities that&#160;directly or indirectly represent a
participation in, or are secured by and payable from, mortgage loans on real property. The Fund may also invest in other types of asset-backed securities, including collateralized debt obligations ("CDOs"), which include collateralized bond
obligations ("CBOs"), collateralized loan obligations ("CLOs") and other similarly structured securities. See "Portfolio Contents&#8211;&#8211;Mortgage-Related and Other Asset- Backed Securities" in this prospectus and "Investment Objectives and
Policies&#8211;&#8211;Mortgage-Related and Other Asset-Backed Securities" in the Statement of Additional Information for a description of the various mortgage-related and other asset-backed securities in which the Fund may invest and their related
risks.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Mortgage-related and other asset-backed securities represent interests in </font><font
face="Arial, Helvetica, sans-serif" size="2">"pools" of mortgages or other assets such as consumer loans or receivables </font><font face="Arial, Helvetica, sans-serif" size="2">held in trust and often involve risks that are different from or
possibly more </font><font face="Arial, Helvetica, sans-serif" size="2">acute than risks associated with other types of debt instruments. Generally, </font><font face="Arial, Helvetica, sans-serif" size="2">rising interest rates tend to extend the
duration of fixed rate mortgage-</font><font face="Arial, Helvetica, sans-serif" size="2">related securities, making them more sensitive to changes in interest rates. </font><font face="Arial, Helvetica, sans-serif" size="2">As a result, in a period
of rising interest rates, the Fund may exhibit </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
<table width="100%">
<tr>
<td align="right" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">December 21, 2017 | <b>PROSPECTUS</b></FONT></p> </td>
<td align="right" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">11</FONT></p> </td> </tr> </table><hr style="size:3;color:#999999;width:100%;">
<DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
<tr>
<td align="left" width="29.5%" colspan="3"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>PIMCO Dynamic Income Fund</b></FONT></p> </td> </tr>
<tr>
<td align="left" width="29.5%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2">additional volatility since individual mortgage
holders are less likely to </font><font face="Arial, Helvetica, sans-serif" size="2">exercise prepayment options, thereby putting additional downward </font><font face="Arial, Helvetica, sans-serif" size="2">pressure on the value of these securities
and potentially causing the Fund to </font><font face="Arial, Helvetica, sans-serif" size="2">lose money. This is known as extension risk. Mortgage-backed securities </font><font face="Arial, Helvetica, sans-serif" size="2">can be highly sensitive
to rising interest rates, such that even small </font><font face="Arial, Helvetica, sans-serif" size="2">movements can cause the Fund to lose value. Mortgage-backed securities, </font><font face="Arial, Helvetica, sans-serif" size="2">and in
particular those not backed by a government guarantee, are subject </font><font face="Arial, Helvetica, sans-serif" size="2">to credit risk. When interest rates decline, borrowers may pay off their </font><font
face="Arial, Helvetica, sans-serif" size="2">mortgages sooner than expected. This can reduce the returns of the Fund </font><font face="Arial, Helvetica, sans-serif" size="2">because the Fund may have to reinvest that money at the lower prevailing
</font><font face="Arial, Helvetica, sans-serif" size="2">interest rates. The Fund's investments in other asset-backed securities are </font><font face="Arial, Helvetica, sans-serif" size="2">subject to risks similar to those associated with
mortgage-related securities, </font><font face="Arial, Helvetica, sans-serif" size="2">as well as additional risks associated with the nature of the assets and the </font><font face="Arial, Helvetica, sans-serif" size="2">servicing of those assets.
Payment of principal and interest on asset-backed </font><font face="Arial, Helvetica, sans-serif" size="2">securities may be largely dependent upon the cash flows generated by the </font><font face="Arial, Helvetica, sans-serif" size="2">assets
backing the securities, and asset-backed securities may not have the </font><font face="Arial, Helvetica, sans-serif" size="2">benefit of any security interest in the related assets. See "Principal Risks of </font><font
face="Arial, Helvetica, sans-serif" size="2">the Fund&#8212;Mortgage Market/Subprime Risk." </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund may also invest in the residual or equity tranches of mortgage-related and other
asset-backed securities, which may be referred to as subordinate mortgage-backed or asset-backed securities and interest-only mortgage-backed or asset-backed securities. Subordinate mortgage-backed or asset-backed securities 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 payment on subordinate mortgage-backed or asset-backed securities will
not be fully paid. There are multiple tranches of mortgage-backed and asset-backed securities, offering investors various maturity and credit risk characteristics. Tranches are categorized as senior, mezzanine, and subordinated/equity or "first
loss," according to their degree of risk. The most senior tranche of a mortgage-backed or asset-backed security has the greatest collateralization and pays the lowest interest rate. If there are defaults or the collateral otherwise underperforms,
scheduled payments to senior tranches 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)
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 expects that investments in
subordinate mortgage-backed and other asset-backed securities 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 securities are also subject to greater credit risk than those mortgage-backed or other asset-backed securities that are more highly rated.</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font
face="Arial, Helvetica, sans-serif" size="3"><b><b>Privately-Issued Mortgage-Related Securities Risk</b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">There are no direct or indirect government or agency guarantees of </font><font
face="Arial, Helvetica, sans-serif" size="2">payments in pools created by non-governmental issuers. Privately-issued </font><font face="Arial, Helvetica, sans-serif" size="2">mortgage-related securities are also not subject to the same underwriting
</font><font face="Arial, Helvetica, sans-serif" size="2">requirements for the underlying mortgages that are applicable to those </font><font face="Arial, Helvetica, sans-serif" size="2">mortgage-related securities that have a government or
government-</font><font face="Arial, Helvetica, sans-serif" size="2">sponsored entity guarantee. </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">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.</font></p>
<p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Mortgage Market/Subprime Risk<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">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 residential and commercial mortgage loans (especially subprime and second-lien mortgage loans) generally increased during that period and may increase again, and a decline in or
flattening of housing and other real property values (as has been experienced during that period and may continue to be experienced in many real estate markets) may exacerbate such delinquencies and losses. Borrowers with adjustable rate mortgage
loans are more sensitive to changes in interest rates, which affect their monthly mortgage payments, and may be unable to secure replacement mortgages at comparably low interest rates. Also, a number of mortgage loan originators have experienced
serious financial difficulties or bankruptcy in recent periods. Owing largely to the foregoing, reduced investor demand for mortgage loans and mortgage-related securities and increased investor yield requirements have caused limited liquidity in the
secondary market for mortgage-related securities, which can adversely affect the market value of mortgage-related securities. It is possible that such limited liquidity in such secondary markets could continue or worsen.</font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>High Yield Securities Risk<br> </b></b></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">In general, lower rated debt securities carry a greater degree of risk that the </font><font face="Arial, Helvetica, sans-serif" size="2">issuer will lose its ability to make interest and principal
payments, which </font><font face="Arial, Helvetica, sans-serif" size="2">could have a negative effect on the NAV of the Fund's Common Shares or </font><font face="Arial, Helvetica, sans-serif" size="2">Common Share dividends. Securities of below
investment grade quality are </font><font face="Arial, Helvetica, sans-serif" size="2">regarded as having predominantly speculative characteristics with respect </font><font face="Arial, Helvetica, sans-serif" size="2">to capacity to pay interest
and repay principal, and are commonly referred </font><font face="Arial, Helvetica, sans-serif" size="2">to as "high yield" securities or "junk bonds." High yield securities involve a </font><font face="Arial, Helvetica, sans-serif" size="2">greater
risk of default and their prices are generally more volatile and </font><font face="Arial, Helvetica, sans-serif" size="2">sensitive to actual or perceived negative developments, such as a decline in </font><font
face="Arial, Helvetica, sans-serif" size="2">the issuer's revenues or revenues of underlying borrowers or a general </font><font face="Arial, Helvetica, sans-serif" size="2">economic downturn, than are the prices of higher grade securities. Debt
</font><font face="Arial, Helvetica, sans-serif" size="2">securities in the lowest investment grade category also may be considered </font><font face="Arial, Helvetica, sans-serif" size="2">to possess some speculative characteristics by certain
rating agencies. The </font><font face="Arial, Helvetica, sans-serif" size="2">Fund may purchase distressed securities that are in default or the issuers of </font><font face="Arial, Helvetica, sans-serif" size="2">which are in bankruptcy, which
involve heightened risks. See "Principal </font><font face="Arial, Helvetica, sans-serif" size="2">Risks of the Fund&#8212;Distressed and Defaulted Securities Risk." An economic </font><font face="Arial, Helvetica, sans-serif" size="2">downturn
could severely affect the ability of issuers (particularly those that </font><font face="Arial, Helvetica, sans-serif" size="2">are highly leveraged) to service their debt obligations or to repay their </font><font
face="Arial, Helvetica, sans-serif" size="2">obligations upon maturity. Lower-rated securities are generally less liquid </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
<table width="100%">
<tr>
<td align="left" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">12 &#160;&#160;&#160;&#160; </FONT></p> </td>
<td align="left" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><b>PROSPECTUS</b> | PIMCO Dynamic Income Fund &#160;&#160;&#160;&#160; </FONT></p> </td> </tr>
</table><hr style="size:3;color:#999999;width:100%;"> <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;
</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
<tr>
<td align="right" width="29.5%" colspan="3"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
<tr>
<td align="right" width="29.5%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2">than higher-rated securities, which may have an
adverse effect on the </font><font face="Arial, Helvetica, sans-serif" size="2">Fund's ability to dispose of a particular security. For example, under adverse </font><font face="Arial, Helvetica, sans-serif" size="2">market or economic conditions,
the secondary market for below investment </font><font face="Arial, Helvetica, sans-serif" size="2">grade securities could contract further, independent of any specific adverse </font><font face="Arial, Helvetica, sans-serif" size="2">changes in the
condition of a particular issuer, and certain securities in the </font><font face="Arial, Helvetica, sans-serif" size="2">Fund's portfolio may become illiquid or less liquid. As a result, the Fund </font><font
face="Arial, Helvetica, sans-serif" size="2">could find it more difficult to sell these securities or may be able to sell </font><font face="Arial, Helvetica, sans-serif" size="2">these securities only at prices lower than if such securities were
widely </font><font face="Arial, Helvetica, sans-serif" size="2">traded. See "Principal Risks of the Fund&#8212;Liquidity Risk." To the extent the </font><font face="Arial, Helvetica, sans-serif" size="2">Fund focuses on below investment grade debt
obligations, PIMCO's </font><font face="Arial, Helvetica, sans-serif" size="2">capabilities in analyzing credit quality and associated risks will be </font><font face="Arial, Helvetica, sans-serif" size="2">particularly important, and there can be
no assurance that PIMCO will be </font><font face="Arial, Helvetica, sans-serif" size="2">successful in this regard. See "Portfolio Contents&#8212; High Yield Securities" </font><font face="Arial, Helvetica, sans-serif" size="2">for additional
information. Due to the risks involved in investing in high </font><font face="Arial, Helvetica, sans-serif" size="2">yield securities, an investment in the Fund should be considered speculative. </font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">The Fund's credit quality policies apply only at the time a security is purchased, and the Fund is not required to dispose of a security in the event that a rating agency or PIMCO downgrades its
assessment of the credit characteristics of a particular issue. In determining whether to retain or sell such a security, PIMCO may consider factors including, but not limited to, PIMCO's assessment of the credit quality of the issuer of such
security, the&#160;price at which such security could be sold and the rating, if any, assigned to such security by other rating agencies. Analysis of creditworthiness may be more complex for issuers of high yield securities than for issuers of
higher quality debt securities.</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Distressed and Defaulted Securities Risk<br> </b></b></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">As noted above, the Fund may invest in the debt securities of financially
</font><font face="Arial, Helvetica, sans-serif" size="2">distressed issuers, including those that are in default or the issuers of which </font><font face="Arial, Helvetica, sans-serif" size="2">are in bankruptcy. Investments in the securities of
financially distressed </font><font face="Arial, Helvetica, sans-serif" size="2">issuers involve substantial risks. These securities may present a substantial </font><font face="Arial, Helvetica, sans-serif" size="2">risk of default or may be in
default at the time of investment. In addition, </font><font face="Arial, Helvetica, sans-serif" size="2">these securities may fluctuate more in price, and are typically less liquid </font><font face="Arial, Helvetica, sans-serif" size="2">than
other higher-rated debt securities. The Fund also will be subject to </font><font face="Arial, Helvetica, sans-serif" size="2">significant uncertainty as to when, and in what manner, and for what value </font><font
face="Arial, Helvetica, sans-serif" size="2">obligations evidenced by securities of financially distressed issuers will </font><font face="Arial, Helvetica, sans-serif" size="2">eventually be satisfied (e.g., through a liquidation of the issuer's
assets, an </font><font face="Arial, Helvetica, sans-serif" size="2">exchange offer or plan of reorganization, or a payment of some amount in </font><font face="Arial, Helvetica, sans-serif" size="2">satisfaction of the obligation). Defaulted
obligations might be repaid only </font><font face="Arial, Helvetica, sans-serif" size="2">after lengthy workout or bankruptcy proceedings, during which the issuer </font><font face="Arial, Helvetica, sans-serif" size="2">might not make any interest
or other payments. In any such proceeding </font><font face="Arial, Helvetica, sans-serif" size="2">relating to a defaulted obligation, the Fund may lose its entire investment </font><font face="Arial, Helvetica, sans-serif" size="2">or may be
required to accept cash or securities with a value substantially </font><font face="Arial, Helvetica, sans-serif" size="2">less than its original investment. Moreover, any securities received by the </font><font
face="Arial, Helvetica, sans-serif" size="2">Fund upon completion of a workout or bankruptcy proceeding may be </font><font face="Arial, Helvetica, sans-serif" size="2">illiquid, speculative, or restricted as to resale. Similarly, if the Fund
</font><font face="Arial, Helvetica, sans-serif" size="2">participates in negotiations with respect to any exchange offer or plan of </font><font face="Arial, Helvetica, sans-serif" size="2">reorganization with respect to the securities of a
distressed issuer, the Fund </font><font face="Arial, Helvetica, sans-serif" size="2">may be restricted from disposing of such securities. To the extent that the </font><font face="Arial, Helvetica, sans-serif" size="2">Fund becomes involved in such
proceedings, the Fund may have a more </font><font face="Arial, Helvetica, sans-serif" size="2">active participation in the affairs of the issuer than that assumed generally </font><font face="Arial, Helvetica, sans-serif" size="2">by an investor.
The Fund may incur additional expenses to the extent it is </font><font face="Arial, Helvetica, sans-serif" size="2">required to seek recovery upon a default in the payment of principal or
</font><font face="Arial, Helvetica, sans-serif" size="2">interest on its portfolio holdings. </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">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.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p>
<p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Municipal Bond Risk</b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">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 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.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">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. Laws, referenda, ordinances or regulations enacted in the future by Congress or state legislatures or the applicable governmental entity could extend the time for payment of principal and/or interest, or impose other constraints on
enforcement of such obligations, or on the ability of municipal issuers to levy taxes. Issuers of municipal securities also might seek protection under the bankruptcy laws. In the event of bankruptcy of such an issuer, the Fund could experience
delays in collecting principal and interest and the Fund may not, in all circumstances, be able to collect all principal and interest to which it is entitled. To enforce its rights in the event of a default in the payment of interest or repayment of
principal, or both, the Fund may take possession of and manage the assets securing the issuer's obligations on such securities, which may increase the Fund's operating expenses. The treatment of municipalities in bankruptcy is more uncertain, and
potentially more adverse to debt holders, than for corporate issues.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">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, there is no guarantee that the particular project will
generate enough revenue to pay its obligations, in which case the Fund's performance may be adversely affected.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The
Fund may invest in taxable municipal bonds, such as Build America </font><font face="Arial, Helvetica, sans-serif" size="2">Bonds. Build America Bonds are tax credit bonds created by the American </font><font
face="Arial, Helvetica, sans-serif" size="2">Recovery and Reinvestment Act of 2009, which authorized state and local </font><font face="Arial, Helvetica, sans-serif" size="2">governments to issue Build America Bonds as taxable bonds in 2009 and
</font><font face="Arial, Helvetica, sans-serif" size="2">2010, without volume limitations, to finance any capital expenditures for </font><font face="Arial, Helvetica, sans-serif" size="2">which such issuers could otherwise issue traditional
tax-exempt bonds. </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
<table width="100%">
<tr>
<td align="right" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">December 21, 2017 | <b>PROSPECTUS</b></FONT></p> </td>
<td align="right" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">13</FONT></p> </td> </tr> </table><hr style="size:3;color:#999999;width:100%;">
<DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
<tr>
<td align="left" width="29.5%" colspan="3"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>PIMCO Dynamic Income Fund</b></FONT></p> </td> </tr>
<tr>
<td align="left" width="29.5%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2">State and local governments may receive a direct
federal subsidy payment </font><font face="Arial, Helvetica, sans-serif" size="2">for a portion of their borrowing costs on Build America Bonds equal to 35% </font><font face="Arial, Helvetica, sans-serif" size="2">of the total coupon interest paid
to investors (or 45% in the case of </font><font face="Arial, Helvetica, sans-serif" size="2">Recovery Zone Economic Development Bonds). The state or local </font><font face="Arial, Helvetica, sans-serif" size="2">government issuer can elect to
either take the federal subsidy or pass the </font><font face="Arial, Helvetica, sans-serif" size="2">35% tax credit along to bondholders. The Fund's investments in Build </font><font face="Arial, Helvetica, sans-serif" size="2">America Bonds or
similar taxable municipal bonds will result in taxable </font><font face="Arial, Helvetica, sans-serif" size="2">income and the Fund may elect to pass through to Common Shareholders </font><font face="Arial, Helvetica, sans-serif" size="2">the
corresponding tax credits. The tax credits can generally be used to offset </font><font face="Arial, Helvetica, sans-serif" size="2">federal income taxes and the alternative minimum tax, but such credits are </font><font
face="Arial, Helvetica, sans-serif" size="2">generally not refundable. Build America Bonds or similar taxable municipal </font><font face="Arial, Helvetica, sans-serif" size="2">bonds involve similar risks as tax-exempt municipal bonds, including
credit </font><font face="Arial, Helvetica, sans-serif" size="2">and market risk. </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Build America Bond program expired on December 31, 2010, at which point no further issuance of
new Build America Bonds was permitted. As of the date of this prospectus, there is no indication that Congress will renew the program to permit issuance of new Build America Bonds. See "Principal Risks of the Fund&#8212;Credit Risk" and "Principal
Risks of the Fund&#8212;Market Risk."</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Inflation-Indexed Security Risk</b></b></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">Inflation-indexed debt securities are subject to the effects of changes in market interest rates caused by factors other than inflation (real interest rates). In general, the value of an inflation-indexed
security, including TIPS, tends to decrease when real interest rates increase and can increase when real interest rates decrease. Thus generally, during periods of rising inflation, the value of inflation-indexed securities will tend to increase and
during periods of deflation, their value will tend to decrease. Interest payments on inflation-indexed securities are unpredictable and will fluctuate as the principal and interest are adjusted for inflation. There can be no assurance that the
inflation index used (i.e., the CPI) will accurately measure the real rate of inflation in the prices of goods and services. Increases in the principal value of TIPS due to inflation are considered taxable ordinary income for the amount of the
increase in the calendar year. Any increase in the principal amount of an inflation-indexed debt security will be considered taxable ordinary income, even though the Fund will not receive the principal until maturity. Additionally, a CPI swap can
potentially lose value if the realized rate of inflation over the life of the swap is less than the fixed market implied inflation rate (fixed breakeven rate) that the investor agrees to pay at the initiation of the swap. With municipal
inflation-indexed securities, the inflation adjustment is integrated into the coupon payment, which is federally tax exempt (and may be state tax exempt). For municipal inflation-indexed securities, there is no adjustment to the principal value.
Because municipal inflation-indexed securities are a small component of the municipal bond market, they may be less liquid than conventional municipal bonds.</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font
face="Arial, Helvetica, sans-serif" size="3"><b><b>Senior Debt Risk</b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Because it may invest in below-investment
grade senior debt, the Fund may </font><font face="Arial, Helvetica, sans-serif" size="2">be subject to greater levels of credit risk than funds that do not invest in </font><font face="Arial, Helvetica, sans-serif" size="2">such debt. The Fund may
also be subject to greater levels of liquidity risk </font><font face="Arial, Helvetica, sans-serif" size="2">than funds that do not invest in senior debt. Restrictions on transfers in loan
</font><font face="Arial, Helvetica, sans-serif" size="2">agreements, a lack of publicly available information and other factors may, </font><font face="Arial, Helvetica, sans-serif" size="2">in certain instances, make senior debt more difficult to
sell at an </font><font face="Arial, Helvetica, sans-serif" size="2">advantageous time or price than other types of securities or instruments. </font><font face="Arial, Helvetica, sans-serif" size="2">Additionally, if the issuer of senior debt
prepays, the Fund will have to </font><font face="Arial, Helvetica, sans-serif" size="2">consider reinvesting the proceeds in other senior debt or similar instruments </font><font face="Arial, Helvetica, sans-serif" size="2">that may pay lower
interest rates. </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Loans and Other Indebtedness; Loan
Participations and Assignments Risk<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Loan interests may take the form of direct interests acquired during a primary distribution and may also take the form of assignments
of, novations of or participations in 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 corporate borrower for payment of principal and interest. If the Fund does not receive scheduled interest or&#160;principal payments on such indebtedness, the Fund's share
price and yield could be adversely affected. Loans that are fully secured offer the Fund more protection than an unsecured loan in the event of non-payment of scheduled interest or principal. However, there is no assurance that the liquidation of
collateral from a secured loan would satisfy the corporate borrower's obligation, or that the collateral can be liquidated.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">Investments in loans through a purchase of a loan 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 or personal property, and would bear the costs and liabilities associated with owning and disposing of the collateral. In
addition, it is conceivable that under emerging legal theories of lender liability, the Fund could be held liable as co-lender. It is unclear whether loans and other forms of direct indebtedness offer securities law protections against fraud and
misrepresentation. In the absence of definitive regulatory guidance, the Fund will rely on PIMCO's research in an attempt to avoid situations where fraud or misrepresentation could adversely affect the Fund. 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 purchaser of an assignment may differ from, and be more limited than, those held by the assigning lender.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">In connection with purchasing loan participations, the Fund generally will </font><font face="Arial, Helvetica, sans-serif" size="2">have no right to enforce compliance by the borrower with the terms of
the </font><font face="Arial, Helvetica, sans-serif" size="2">loan agreement relating to the loan, nor any rights of set-off against the </font><font face="Arial, Helvetica, sans-serif" size="2">borrower, and the Fund may not directly benefit from
any collateral </font><font face="Arial, Helvetica, sans-serif" size="2">supporting the loan in which it has purchased the loan participation. As a </font><font face="Arial, Helvetica, sans-serif" size="2">result, the Fund may be subject to the
credit risk of both the borrower and </font><font face="Arial, Helvetica, sans-serif" size="2">the lender that is selling the participation. In the event of the insolvency of </font><font face="Arial, Helvetica, sans-serif" size="2">the lender
selling a participation, the Fund may be treated as a general </font><font face="Arial, Helvetica, sans-serif" size="2">creditor of the lender and may not benefit from any set-off between the
</font><font face="Arial, Helvetica, sans-serif" size="2">lender and the borrower. Certain loan participations may be structured in a </font><font face="Arial, Helvetica, sans-serif" size="2">manner designed to prevent purchasers of participations
from being subject </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
<table width="100%">
<tr>
<td align="left" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">14 &#160;&#160;&#160;&#160; </FONT></p> </td>
<td align="left" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><b>PROSPECTUS</b> | PIMCO Dynamic Income Fund &#160;&#160;&#160;&#160; </FONT></p> </td> </tr>
</table><hr style="size:3;color:#999999;width:100%;"> <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;
</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
<tr>
<td align="right" width="29.5%" colspan="3"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
<tr>
<td align="right" width="29.5%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2">to the credit risk of the lender with respect to
the participation, but even </font><font face="Arial, Helvetica, sans-serif" size="2">under such a structure, in the event of the lender's insolvency, the lender's </font><font face="Arial, Helvetica, sans-serif" size="2">servicing of the
participation may be delayed and the assignability of the </font><font face="Arial, Helvetica, sans-serif" size="2">participation impaired. </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund may have difficulty disposing of
loans and loan participations because to do so it will have to assign or sell such securities to a third party. Because there is no liquid market for many such securities, the Fund anticipates that such securities 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 securities 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.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">To the extent the Fund invests in loans, including bank
loans, the Fund may be subject to greater levels of credit risk, call risk, settlement risk and liquidity risk than funds that do not invest in such securities. 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. 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 proceeds from a sale of a loan for an extended period after such sale, each of which could result in losses to the Fund. Some loans may have extended trade settlement periods, including settlement periods of greater than 7 days, which
may result in cash not being immediately available to&#160;the Fund. If an issuer of a loan prepays or redeems the loan prior to maturity, the Fund may have to reinvest the proceeds in other loans or similar instruments that may pay lower interest
rates. Because of the risks involved in investing in loans, an investment in the Fund should be considered speculative.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2">The Fund's investments in subordinated and unsecured loans generally are </font><font face="Arial, Helvetica, sans-serif" size="2">subject to similar risks as those associated with investments in
secured </font><font face="Arial, Helvetica, sans-serif" size="2">loans. Subordinated or unsecured loans are lower in priority of payment to </font><font face="Arial, Helvetica, sans-serif" size="2">secured loans and are subject to the additional
risk that the cash flow of </font><font face="Arial, Helvetica, sans-serif" size="2">the borrower and property securing the loan or debt, if any, may be </font><font face="Arial, Helvetica, sans-serif" size="2">insufficient to meet scheduled
payments after giving effect to the senior </font><font face="Arial, Helvetica, sans-serif" size="2">secured obligations of the borrower. This risk is generally higher for </font><font face="Arial, Helvetica, sans-serif" size="2">subordinated
unsecured loans or debt, which are not backed by a security </font><font face="Arial, Helvetica, sans-serif" size="2">interest in any specific collateral. Subordinated and unsecured loans
</font><font face="Arial, Helvetica, sans-serif" size="2">generally have greater price volatility than secured loans and may be less </font><font face="Arial, Helvetica, sans-serif" size="2">liquid. There is also a possibility that originators will
not be able to sell </font><font face="Arial, Helvetica, sans-serif" size="2">participations in subordinated or unsecured loans, which would create </font><font face="Arial, Helvetica, sans-serif" size="2">greater credit risk exposure for the
holders of such loans. Subordinate and </font><font face="Arial, Helvetica, sans-serif" size="2">unsecured loans share the same risks as other below investment grade </font><font face="Arial, Helvetica, sans-serif" size="2">securities. </font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">There may be less readily available information about most loans and the underlying borrowers than is the case for many other
types of securities, including securities issued in transactions registered under the 1933 Act, or registered under the Securities Exchange Act of 1934 (the "Exchange Act"), and borrowers subject to the periodic reporting requirements of Section 13
of the Exchange Act. Loans may be issued by companies that are not subject to Securities and Exchange Commission ("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 companies 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.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">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 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. See "Principal Risks of the Fund&#8212;Derivatives Risk."</font></p>
<p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Reinvestment Risk<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">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.</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Call Risk<br>
</b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Call risk refers to the possibility that an issuer may exercise its right to </font><font
face="Arial, Helvetica, sans-serif" size="2">redeem a fixed income security earlier than expected (a call). Issuers may </font><font face="Arial, Helvetica, sans-serif" size="2">call outstanding securities prior to their maturity for a number of
reasons </font><font face="Arial, Helvetica, sans-serif" size="2">(e.g., declining interest rates, changes in credit spreads and improvements </font><font face="Arial, Helvetica, sans-serif" size="2">in the issuer's credit quality). If an issuer
calls a security in which the Fund </font><font face="Arial, Helvetica, sans-serif" size="2">has invested, the Fund may not recoup the full amount of its initial </font><font face="Arial, Helvetica, sans-serif" size="2">investment and may be forced
to reinvest in lower-yielding securities, </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
<table width="100%">
<tr>
<td align="right" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">December 21, 2017 | <b>PROSPECTUS</b></FONT></p> </td>
<td align="right" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">15</FONT></p> </td> </tr> </table><hr style="size:3;color:#999999;width:100%;">
<DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
<tr>
<td align="left" width="29.5%" colspan="3"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>PIMCO Dynamic Income Fund</b></FONT></p> </td> </tr>
<tr>
<td align="left" width="29.5%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2">securities with greater credit risks or securities
with other, less favorable </font><font face="Arial, Helvetica, sans-serif" size="2">features. </font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Foreign (Non-U.S.) Investment
Risk</b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund may invest in foreign (non-U.S.) securities and may experience more rapid and extreme changes in value than the Fund that invests exclusively in securities of
U.S. companies. 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 of regulation as U.S. issuers. Reporting, accounting, auditing and custody standards of foreign countries differ, in some cases significantly, from U.S. standards. Global economies and financial markets are becoming increasingly
interconnected, and conditions and events in one country, region or financial market may adversely impact issuers in a different country, region or financial market. Also, nationalization, expropriation or confiscatory taxation, currency blockage,
political changes or diplomatic developments could adversely affect the Fund's investments in a foreign country. In the event of nationalization, expropriation or other confiscation, the Fund could lose its entire investment in foreign (non-U.S.)
securities. Adverse conditions in a certain region can adversely affect securities of other countries whose economies appear to be unrelated. To the extent that the Fund invests a significant portion of its assets in a specific geographic region,
the Fund will generally have more exposure to regional economic risks associated with foreign (non-U.S.) investments. Foreign (non-U.S.) securities may also be less liquid and more difficult to value than securities of U.S. issuers.</font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The global economic crisis brought several small economies in Europe to the brink of bankruptcy and many other economies into recession
and weakened the banking and financial sectors of many European countries. For example, the governments of Greece, Spain, Portugal, and the Republic of Ireland have all experienced large public budget deficits, the effects of which are still yet
unknown and may slow the overall recovery of the European economies from the global economic crisis. In addition, due to large public deficits, some European countries may be dependent on assistance from other European governments and institutions
or other central banks or supranational agencies such as the International Monetary Fund. Assistance may be dependent on a country's implementation of reforms or reaching a certain level of performance. Failure to reach those objectives or an
insufficient level of assistance could result in a deep economic downturn which could significantly affect the value of the Fund's European investments. It is possible that one or more Economic and Monetary Union member countries could abandon the
euro and return to a national currency and/or that the euro will cease to exist as a single currency in its current form. The exit of any country out of the euro may have an extremely destabilizing effect on other eurozone countries and their
economies and a negative effect on the global economy as a whole. Such an exit by one country may also increase the possibility that additional countries may exit the euro should they face similar financial difficulties.</font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">At a referendum in June 2016, the United Kingdom (the UK) voted to leave </font><font face="Arial, Helvetica, sans-serif" size="2">the
European Union (EU). In connection with the British exit from the EU </font><font face="Arial, Helvetica, sans-serif" size="2">(commonly known as "Brexit"), it is expected that the UK will invoke article </font><font
face="Arial, Helvetica, sans-serif" size="2">50 of the Treaty of Lisbon to withdraw from the EU in due course, however </font><font face="Arial, Helvetica, sans-serif" size="2">there is a significant degree of uncertainty about how negotiations
relating </font><font face="Arial, Helvetica, sans-serif" size="2">to the UK's withdrawal and new trade agreements will be conducted, as </font><font face="Arial, Helvetica, sans-serif" size="2">well as the potential consequences and precise
timeframe for Brexit. It is </font><font face="Arial, Helvetica, sans-serif" size="2">expected that the UK's exit from the EU will take place within two years of </font><font face="Arial, Helvetica, sans-serif" size="2">the UK notifying the European
Council that it intends to withdraw from the </font><font face="Arial, Helvetica, sans-serif" size="2">EU. During this period and beyond, the impact of any partial or complete </font><font face="Arial, Helvetica, sans-serif" size="2">dissolution of
the EU on the UK and European economies and the broader </font><font face="Arial, Helvetica, sans-serif" size="2">global economy could be significant, resulting in negative impacts on
</font><font face="Arial, Helvetica, sans-serif" size="2">currency and financial markets generally, such as increased volatility and </font><font face="Arial, Helvetica, sans-serif" size="2">illiquidity, and potentially lower economic growth in
markets in the UK, </font><font face="Arial, Helvetica, sans-serif" size="2">Europe and globally, which may adversely affect the value of the Fund's </font><font face="Arial, Helvetica, sans-serif" size="2">portfolio investments. </font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The UK has one of the largest economies in Europe, and member countries of the EU are substantial trading partners of the UK. The City of
London's economy is dominated by financial services, some of which may have to move outside of the UK post-referendum (e.g., currency trading, international settlement). Under the referendum, banks may be forced to move staff and comply with two
separate sets of rules or lose business to banks in Europe. Furthermore, the referendum creates the potential for decreased trade, the possibility of capital outflows, devaluation of the pound sterling, the cost of higher corporate bond spreads due
to uncertainty, and the&#160;risk that all the above could damage business and consumer spending as well as foreign direct investment. As a result of the referendum, the British economy and its currency may be negatively impacted by changes to its
economic and political relations with the EU. Any further exits from the EU, or the possibility of such exits, would likely cause additional market disruption globally and introduce new legal and regulatory uncertainties.</font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The impact of the referendum in the near- and long-term is still unknown and could have additional adverse effects on economies, financial
markets, currencies and asset valuations around the world. Any attempt by the Fund to hedge against or otherwise protect its portfolio or to profit from such circumstances may fail and, accordingly, an investment in the Fund could lose money over
short or long periods.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund may invest in securities and instruments that are economically </font><font
face="Arial, Helvetica, sans-serif" size="2">tied to Russia. Investments in Russia are subject to various risks such as </font><font face="Arial, Helvetica, sans-serif" size="2">political, economic, legal, market and currency risks. The risks
include </font><font face="Arial, Helvetica, sans-serif" size="2">uncertain political and economic policies, short term market volatility, poor </font><font face="Arial, Helvetica, sans-serif" size="2">accounting standards, corruption and crime, an
inadequate regulatory </font><font face="Arial, Helvetica, sans-serif" size="2">system, and unpredictable taxation. Investments in Russia are particularly </font><font face="Arial, Helvetica, sans-serif" size="2">subject to the risk that economic
sanctions may be imposed by the United </font><font face="Arial, Helvetica, sans-serif" size="2">States and/or other countries. Such sanctions&#8212;which may impact </font><font face="Arial, Helvetica, sans-serif" size="2">companies in many
sectors, including energy, financial services and defense, </font><font face="Arial, Helvetica, sans-serif" size="2">among others&#8212;may negatively impact the Fund's performance and/or
</font><font face="Arial, Helvetica, sans-serif" size="2">ability to achieve its investment objectives. The Russian securities market is </font><font face="Arial, Helvetica, sans-serif" size="2">characterized by limited volume of trading, resulting
in difficulty in obtaining </font><font face="Arial, Helvetica, sans-serif" size="2">accurate prices. The Russian securities market, as compared to U.S. markets, </font><font face="Arial, Helvetica, sans-serif" size="2">has significant price
volatility, less liquidity, a smaller market capitalization </font><font face="Arial, Helvetica, sans-serif" size="2">and a smaller number of traded securities. There may be little publicly
</font><font face="Arial, Helvetica, sans-serif" size="2">available information about issuers. Settlement, clearing and registration of </font><font face="Arial, Helvetica, sans-serif" size="2">securities transactions are subject to risks because of
registration systems </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
<table width="100%">
<tr>
<td align="left" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">16 &#160;&#160;&#160;&#160; </FONT></p> </td>
<td align="left" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><b>PROSPECTUS</b> | PIMCO Dynamic Income Fund &#160;&#160;&#160;&#160; </FONT></p> </td> </tr>
</table><hr style="size:3;color:#999999;width:100%;"> <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;
</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
<tr>
<td align="right" width="29.5%" colspan="3"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
<tr>
<td align="right" width="29.5%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2">that may not be subject to effective government
supervision. This may result </font><font face="Arial, Helvetica, sans-serif" size="2">in significant delays or problems in registering the transfer of securities. </font><font face="Arial, Helvetica, sans-serif" size="2">Russian securities laws may
not recognize foreign nominee accounts held </font><font face="Arial, Helvetica, sans-serif" size="2">with a custodian bank, and therefore the custodian may be considered the </font><font face="Arial, Helvetica, sans-serif" size="2">ultimate owner
of securities they hold for their clients. Ownership of </font><font face="Arial, Helvetica, sans-serif" size="2">securities issued by Russian companies is recorded by companies </font><font face="Arial, Helvetica, sans-serif" size="2">themselves
and by registrars instead of through a central registration </font><font face="Arial, Helvetica, sans-serif" size="2">system. It is possible that the ownership rights of the Fund could be lost
</font><font face="Arial, Helvetica, sans-serif" size="2">through fraud or negligence. While applicable Russian regulations impose </font><font face="Arial, Helvetica, sans-serif" size="2">liability on registrars for losses resulting from their
errors, it may be difficult </font><font face="Arial, Helvetica, sans-serif" size="2">for the Fund to enforce any rights it may have against the registrar or issuer </font><font face="Arial, Helvetica, sans-serif" size="2">of the securities in the
event of loss of share registration. Adverse currency </font><font face="Arial, Helvetica, sans-serif" size="2">exchange rates are a risk and there may be a lack of available currency </font><font face="Arial, Helvetica, sans-serif" size="2">hedging
instruments. Investments in Russia may be subject to the risk of </font><font face="Arial, Helvetica, sans-serif" size="2">nationalization or expropriation of assets. Oil, natural gas, metals, and </font><font
face="Arial, Helvetica, sans-serif" size="2">timber account for a significant portion of Russia's exports, leaving the </font><font face="Arial, Helvetica, sans-serif" size="2">country vulnerable to swings in world prices. </font></p>
<p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Emerging Markets Risk<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Foreign 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 above, but to a heightened degree.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">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 even among all or most emerging market countries. This may undermine any attempt by the Fund to reduce risk through geographic diversification of its portfolio investments among emerging market
countries.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">There is a heightened possibility of imposition of withholding taxes on interest or dividend income
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.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">There is also a greater risk that an emerging market government may take </font><font face="Arial, Helvetica, sans-serif" size="2">action that impedes or prevents the Fund from taking income and/or
capital </font><font face="Arial, Helvetica, sans-serif" size="2">gains earned in the local currency and converting into U.S. dollars (i.e., </font><font face="Arial, Helvetica, sans-serif" size="2">"repatriating" local currency investments or
profits). Certain emerging </font><font face="Arial, Helvetica, sans-serif" size="2">market countries have sought to maintain foreign exchange reserves and/or </font><font face="Arial, Helvetica, sans-serif" size="2">address the economic volatility
and dislocations caused by the large </font><font face="Arial, Helvetica, sans-serif" size="2">international capital flows by controlling or restricting the conversion of the </font><font face="Arial, Helvetica, sans-serif" size="2">local currency
into other currencies. This risk tends to become more acute </font><font face="Arial, Helvetica, sans-serif" size="2">when economic conditions otherwise worsen. There can be no assurance </font><font face="Arial, Helvetica, sans-serif" size="2">that
if the Fund earns income or capital gains in an emerging market </font><font face="Arial, Helvetica, sans-serif" size="2">currency or PIMCO otherwise seeks to withdraw the Fund's investments
</font><font face="Arial, Helvetica, sans-serif" size="2">from a given emerging market country, capital controls imposed by such </font><font face="Arial, Helvetica, sans-serif" size="2">country will not prevent, or cause significant expense in,
doing so. </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">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.</font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">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 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. 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. See "Principal Risks of the Fund&#8212;Currency Risk." Also, investing in emerging market countries may entail purchases of securities of issuers that are insolvent, bankrupt or otherwise of questionable
ability to satisfy their payment obligations as they become due, subjecting the Fund to a greater amount of credit risk and/or high yield risk. See "Principal Risks of the Fund&#8212;Credit Risk" and "Principal Risks of the Fund&#8212;High Yield
Securities Risk."</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Currency Risk<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">The Fund may engage in practices and strategies that will result in exposure to fluctuations in foreign exchange rates, in which case the Fund will be subject to foreign currency risk. The Fund's Common
Shares are priced in U.S. dollars and the distributions paid by the Fund to Common Shareholders are paid in U.S. dollars. However, a substantial portion of the Fund's assets may be denominated directly in foreign (non-U.S.) currencies or in
securities that trade in, and receive revenues in, foreign (non-U.S.) currencies, or in derivatives that provide exposure to foreign (non-U.S.) currencies, it will be 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.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
<table width="100%">
<tr>
<td align="right" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">December 21, 2017 | <b>PROSPECTUS</b></FONT></p> </td>
<td align="right" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">17</FONT></p> </td> </tr> </table><hr style="size:3;color:#999999;width:100%;">
<DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
<tr>
<td align="left" width="29.5%" colspan="3"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>PIMCO Dynamic Income Fund</b></FONT></p> </td> </tr>
<tr>
<td align="left" width="29.5%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2">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 rates, rates of inflation, 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, or by 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. As noted above, the Fund may (but is not required to) seek exposure to foreign currencies, or attempt to hedge
exposure to reduce the risk of loss due to fluctuations in currency exchange rates relative to the U.S. dollar. There is no assurance, however, that these strategies will be available or will be used by the Fund or, if used, that they will be
successful. As a result, the Fund's investments in foreign currency-denominated securities may reduce the returns of the Fund.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">Currency risk may be particularly high to the extent that the Fund invests in foreign (non-U.S.) currencies or engages in foreign currency transactions that are economically tied to emerging market
countries. These currency transactions may present market, credit, currency, liquidity, legal, political 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.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font
face="Arial, Helvetica, sans-serif" size="3"><b><b>Redenomination Risk<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">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. See "Principal Risks of the Fund&#8212; Currency Risk," "Principal Risks of the Fund&#8212;Liquidity Risk" and "Principal Risks of the Fund&#8212;Valuation Risk." 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.</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font
face="Arial, Helvetica, sans-serif" size="3"><b><b>U.S. Government Securities Risk<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund may invest in debt securities issued or guaranteed by agencies, </font><font
face="Arial, Helvetica, sans-serif" size="2">instrumentalities and sponsored enterprises of the U.S. Government. Some </font><font face="Arial, Helvetica, sans-serif" size="2">U.S. Government securities, such as U.S. Treasury bills, notes and bonds,
and </font><font face="Arial, Helvetica, sans-serif" size="2">mortgage-related securities guaranteed by the Government National </font><font face="Arial, Helvetica, sans-serif" size="2">Mortgage Association ("GNMA"), are supported by the full faith
and credit </font><font face="Arial, Helvetica, sans-serif" size="2">of the United States; others, such as those of the Federal Home Loan Banks </font><font face="Arial, Helvetica, sans-serif" size="2">("FHLBs") or the Federal Home Loan Mortgage
Corporation ("FHLMC"), </font><font face="Arial, Helvetica, sans-serif" size="2">are supported by the right of the issuer to borrow from the U.S. Treasury; </font><font face="Arial, Helvetica, sans-serif" size="2">others, such as those of the
Federal National Mortgage Association </font><font face="Arial, Helvetica, sans-serif" size="2">("FNMA"), are supported by the discretionary authority of the U.S. </font><font face="Arial, Helvetica, sans-serif" size="2">Government to purchase the
agency's obligations; and still others are </font><font face="Arial, Helvetica, sans-serif" size="2">supported only by the credit of the agency, instrumentality or corporation. </font><font face="Arial, Helvetica, sans-serif" size="2">Although
legislation has been enacted to support certain government </font><font face="Arial, Helvetica, sans-serif" size="2">sponsored entities, including the FHLBs, FHLMC and FNMA, there is no
</font><font face="Arial, Helvetica, sans-serif" size="2">assurance that the obligations of such entities will be satisfied in full, or that </font><font face="Arial, Helvetica, sans-serif" size="2">such obligations will not decrease in value or
default. It is difficult, if not </font><font face="Arial, Helvetica, sans-serif" size="2">impossible, to predict the future political, regulatory or economic changes </font><font face="Arial, Helvetica, sans-serif" size="2">that could impact the
government sponsored entities and the values of their </font><font face="Arial, Helvetica, sans-serif" size="2">related securities or obligations. In addition, certain governmental entities,
</font><font face="Arial, Helvetica, sans-serif" size="2">including FNMA and FHLMC, have been subject to regulatory scrutiny </font><font face="Arial, Helvetica, sans-serif" size="2">regarding their accounting policies and practices and other
concerns that </font><font face="Arial, Helvetica, sans-serif" size="2">may result in legislation, changes in regulatory oversight and/or other </font><font face="Arial, Helvetica, sans-serif" size="2">consequences that could adversely affect the
credit quality, availability or </font><font face="Arial, Helvetica, sans-serif" size="2">investment character of securities issued by these entities. See "Investment </font><font face="Arial, Helvetica, sans-serif" size="2">Objectives and
Policies&#8212;Mortgage-Related and Other Asset-Backed </font><font face="Arial, Helvetica, sans-serif" size="2">Securities" in the Statement of Additional Information. U.S. Government </font><font face="Arial, Helvetica, sans-serif" size="2">debt
securities generally involve lower levels of credit risk than other types </font><font face="Arial, Helvetica, sans-serif" size="2">of debt securities of similar maturities, although, as a result, the yields </font><font
face="Arial, Helvetica, sans-serif" size="2">available from U.S. Government debt securities are generally lower than the </font><font face="Arial, Helvetica, sans-serif" size="2">yields available from such other securities. Like other debt
securities, the </font><font face="Arial, Helvetica, sans-serif" size="2">values of U.S. Government securities change as interest rates fluctuate. </font><font face="Arial, Helvetica, sans-serif" size="2">Fluctuations in the value of portfolio
securities will not affect interest </font><font face="Arial, Helvetica, sans-serif" size="2">income on existing portfolio securities but will be reflected in the Fund's </font><font face="Arial, Helvetica, sans-serif" size="2">NAV. </font></p>
<p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Foreign (Non-U.S.) Government Securities Risk<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund's
investments in debt obligations of foreign (non-U.S.) </font><font face="Arial, Helvetica, sans-serif" size="2">governments or their sub-divisions, agencies and government sponsored
</font><font face="Arial, Helvetica, sans-serif" size="2">enterprises and obligations of international agencies and supranational </font><font face="Arial, Helvetica, sans-serif" size="2">entities (together "Foreign Government Securities") can
involve a high </font><font face="Arial, Helvetica, sans-serif" size="2">degree of risk. The foreign governmental entity that controls the repayment </font><font face="Arial, Helvetica, sans-serif" size="2">of debt may not be able or willing to
repay the principal and/or interest </font><font face="Arial, Helvetica, sans-serif" size="2">when due in accordance with the terms of such debt. A governmental </font><font face="Arial, Helvetica, sans-serif" size="2">entity's willingness or
ability to repay principal and interest due in a timely </font><font face="Arial, Helvetica, sans-serif" size="2">manner may be affected by, among other factors, its cash flow situation, </font><font face="Arial, Helvetica, sans-serif" size="2">the
extent of its foreign reserves, the availability of sufficient foreign </font><font face="Arial, Helvetica, sans-serif" size="2">exchange on the date a payment is due, the relative size of the debt service </font><font
face="Arial, Helvetica, sans-serif" size="2">burden to the economy as a whole, the governmental entity's policy </font><font face="Arial, Helvetica, sans-serif" size="2">towards the International Monetary Fund and the political constraints to
</font><font face="Arial, Helvetica, sans-serif" size="2">which a governmental entity may be subject. Foreign governmental entities </font><font face="Arial, Helvetica, sans-serif" size="2">also may be dependent on expected disbursements from other
</font><font face="Arial, Helvetica, sans-serif" size="2">governments, multilateral agencies and others abroad to reduce principal </font><font face="Arial, Helvetica, sans-serif" size="2">and interest arrearages on their debt. The commitment on the
part of these </font><font face="Arial, Helvetica, sans-serif" size="2">governments, agencies and others to make such disbursements may be </font><font face="Arial, Helvetica, sans-serif" size="2">conditioned on the implementation of economic
reforms and/or economic </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
<table width="100%">
<tr>
<td align="left" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">18 &#160;&#160;&#160;&#160; </FONT></p> </td>
<td align="left" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><b>PROSPECTUS</b> | PIMCO Dynamic Income Fund &#160;&#160;&#160;&#160; </FONT></p> </td> </tr>
</table><hr style="size:3;color:#999999;width:100%;"> <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;
</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
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<td align="right" width="29.5%" colspan="3"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
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<td align="right" width="29.5%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2">performance and the timely service of such
debtor's obligations. Failure to </font><font face="Arial, Helvetica, sans-serif" size="2">implement such reforms, achieve such levels of economic performance or </font><font face="Arial, Helvetica, sans-serif" size="2">repay principal or interest
when due may result in the cancellation of such </font><font face="Arial, Helvetica, sans-serif" size="2">third parties' commitments to lend funds to the foreign governmental </font><font face="Arial, Helvetica, sans-serif" size="2">entity, which
may further impair such debtor's ability or willingness to timely </font><font face="Arial, Helvetica, sans-serif" size="2">service its debts. Consequently, foreign governmental entities may default </font><font
face="Arial, Helvetica, sans-serif" size="2">on their debt. Holders of Foreign Government Securities may be requested </font><font face="Arial, Helvetica, sans-serif" size="2">to participate in the rescheduling of such debt and to extend further
loans </font><font face="Arial, Helvetica, sans-serif" size="2">to governmental entities. In the event of a default by a governmental entity, </font><font face="Arial, Helvetica, sans-serif" size="2">there may be few or no effective legal remedies
for collecting on such debt. </font><font face="Arial, Helvetica, sans-serif" size="2">These risks are particularly severe with respect to the Fund's investments in </font><font face="Arial, Helvetica, sans-serif" size="2">Foreign Government
Securities of emerging market countries. See "Principal </font><font face="Arial, Helvetica, sans-serif" size="2">Risks of the Fund&#8212;Emerging Markets Risk." Among other risks, if the
</font><font face="Arial, Helvetica, sans-serif" size="2">Fund's investments in Foreign Government Securities issued by an emerging </font><font face="Arial, Helvetica, sans-serif" size="2">market country need to be liquidated quickly, the Fund
could sustain </font><font face="Arial, Helvetica, sans-serif" size="2">significant transaction costs. Also, governments in many emerging market </font><font face="Arial, Helvetica, sans-serif" size="2">countries participate to a significant degree
in their economies and </font><font face="Arial, Helvetica, sans-serif" size="2">securities markets, which may impair investment and economic growth, and </font><font face="Arial, Helvetica, sans-serif" size="2">which may in turn diminish the value
of the Fund's holdings in emerging </font><font face="Arial, Helvetica, sans-serif" size="2">market Foreign Government Securities and the currencies in which they are </font><font face="Arial, Helvetica, sans-serif" size="2">denominated and/or pay
revenues. </font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Convertible Securities Risk<br> </b></b></font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2">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. 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. 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 debt obligations. Convertible securities are often rated below investment grade or not rated
because they fall below debt obligations and just above common equity in order of preference or priority on the issuer's balance sheet. See "Principal Risks of the Fund&#8212;High Yield Securities Risk."</font></p>
<p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Synthetic Convertible Securities Risk<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund may invest
in synthetic convertible securities, which are created </font><font face="Arial, Helvetica, sans-serif" size="2">through a combination of separate securities that possess the two principal
</font><font face="Arial, Helvetica, sans-serif" size="2">characteristics of a traditional convertible security, i.e., an income-producing </font><font face="Arial, Helvetica, sans-serif" size="2">security ("income-producing component") and the
right to acquire an </font><font face="Arial, Helvetica, sans-serif" size="2">equity security ("convertible component"). The income-producing </font><font face="Arial, Helvetica, sans-serif" size="2">component is achieved by investing in
non-convertible, income-producing </font><font face="Arial, Helvetica, sans-serif" size="2">securities such as bonds, preferred securities and money market </font><font face="Arial, Helvetica, sans-serif" size="2">instruments. The convertible
component is achieved by purchasing warrants </font><font face="Arial, Helvetica, sans-serif" size="2">or options to buy common stock at a certain exercise price, or options on a </font><font face="Arial, Helvetica, sans-serif" size="2">stock index.
The values of synthetic convertible securities will respond </font><font face="Arial, Helvetica, sans-serif" size="2">differently to market fluctuations than a traditional convertible security
</font><font face="Arial, Helvetica, sans-serif" size="2">because a synthetic convertible is composed of two or more separate </font><font face="Arial, Helvetica, sans-serif" size="2">securities or instruments, each with its own market value.
Synthetic </font><font face="Arial, Helvetica, sans-serif" size="2">convertible securities are also subject to the risks associated with </font><font face="Arial, Helvetica, sans-serif" size="2">derivatives. See "Principal Risks of the
Fund&#8212;Derivatives Risk." In addition, </font><font face="Arial, Helvetica, sans-serif" size="2">if the value of the underlying common stock or the level of the index </font><font face="Arial, Helvetica, sans-serif" size="2">involved in the
convertible element falls below the strike price of the </font><font face="Arial, Helvetica, sans-serif" size="2">warrant or option, the warrant or option may lose all value. </font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font
face="Arial, Helvetica, sans-serif" size="3"><b><b>Contingent Convertible Securities Risk</b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">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 upon
the occurrence of certain triggering events ("triggers") linked to regulatory capital thresholds or regulatory actions relating to the issuer's continued viability. As a result, an investment by the Fund in CoCos is subject to the risk that coupon
(i.e., interest) payments may be cancelled by the issuer or a regulatory authority in order to help the issuer absorb losses. An investment by the Fund in CoCos is also subject to the risk that, in the event of the liquidation, dissolution or
winding-up of an issuer prior to a trigger event, the Fund's rights and claims will generally rank junior to the claims of holders of the issuer's other debt obligations. In addition, if CoCos held by the Fund are converted into the issuer's
underlying equity securities following a trigger event, the Fund's holding may be further subordinated due to the conversion from a debt to equity instrument. Further, the value of an investment in CoCos is unpredictable and will be influenced by
many factors and risks, including interest rate risk, credit risk, market risk, liquidity risk and valuation risk. An investment by the Fund in CoCos may result in losses to the Fund.</font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Valuation Risk<br> </b></b></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">When market quotations are not readily available or are deemed to be unreliable, the Fund values its investments at fair value as
determined in good faith pursuant to policies and procedures approved by the Board of Trustees. See "Net Asset Value." 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.</font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Leverage Risk<br> </b></b></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">The Fund's use of leverage (as described under "Use of Leverage" in the </font><font face="Arial, Helvetica, sans-serif" size="2">body of this prospectus) creates the opportunity for increased Common
</font><font face="Arial, Helvetica, sans-serif" size="2">Share net income, but also creates special risks for Common Shareholders. </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
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<td align="right" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">December 21, 2017 | <b>PROSPECTUS</b></FONT></p> </td>
<td align="right" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">19</FONT></p> </td> </tr> </table><hr style="size:3;color:#999999;width:100%;">
<DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p>
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<td align="left" width="29.5%" colspan="3"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>PIMCO Dynamic Income Fund</b></FONT></p> </td> </tr>
<tr>
<td align="left" width="29.5%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2">To the extent used, there is no assurance that the
Fund's leveraging </font><font face="Arial, Helvetica, sans-serif" size="2">strategies will be successful. Leverage is a speculative technique that may </font><font face="Arial, Helvetica, sans-serif" size="2">expose the Fund to greater risk and
increased costs. The net proceeds that </font><font face="Arial, Helvetica, sans-serif" size="2">the Fund obtains from its use of reverse repurchase agreements, dollar rolls </font><font face="Arial, Helvetica, sans-serif" size="2">and/or borrowings
(as well as from any future issuance of preferred shares) </font><font face="Arial, Helvetica, sans-serif" size="2">will be invested in accordance with the Fund's investment objectives and
</font><font face="Arial, Helvetica, sans-serif" size="2">policies as described in this prospectus and any prospectus supplement. </font><font face="Arial, Helvetica, sans-serif" size="2">Interest or other expenses payable by the Fund with respect
to its reverse </font><font face="Arial, Helvetica, sans-serif" size="2">repurchase agreements, dollar rolls and borrowings for dividends payable </font><font face="Arial, Helvetica, sans-serif" size="2">with respect to any outstanding preferred
shares will generally be based on </font><font face="Arial, Helvetica, sans-serif" size="2">shorter-term interest rates that would be periodically reset. So long as the </font><font face="Arial, Helvetica, sans-serif" size="2">Fund's portfolio
investments provide a higher rate of return (net of </font><font face="Arial, Helvetica, sans-serif" size="2">applicable Fund expenses) than the interest rates and other costs to the </font><font face="Arial, Helvetica, sans-serif" size="2">Fund of
such leverage, the investment of the proceeds thereof will generate </font><font face="Arial, Helvetica, sans-serif" size="2">more income than will be needed to pay the costs of the leverage. If so, and </font><font
face="Arial, Helvetica, sans-serif" size="2">all other things being equal, the excess may be used to pay higher dividends </font><font face="Arial, Helvetica, sans-serif" size="2">to Common Shareholders than if the Fund were not so leveraged. If,
</font><font face="Arial, Helvetica, sans-serif" size="2">however, shorter-term interest rates rise relative to the rate of return on the </font><font face="Arial, Helvetica, sans-serif" size="2">Fund's portfolio, the interest and other costs of
leverage to the Fund </font><font face="Arial, Helvetica, sans-serif" size="2">(including interest expenses on reverse repurchase agreements, dollar rolls </font><font face="Arial, Helvetica, sans-serif" size="2">and borrowings and the dividend rate
on any outstanding preferred shares) </font><font face="Arial, Helvetica, sans-serif" size="2">could exceed the rate of return on the debt obligations and other </font><font face="Arial, Helvetica, sans-serif" size="2">investments held by the Fund,
thereby reducing return to Common </font><font face="Arial, Helvetica, sans-serif" size="2">Shareholders. In addition, fees and expenses of any form of leverage used </font><font face="Arial, Helvetica, sans-serif" size="2">by the Fund will be borne
entirely by the Common Shareholders (and not by </font><font face="Arial, Helvetica, sans-serif" size="2">preferred shareholders, if any) and will reduce the investment return of the </font><font face="Arial, Helvetica, sans-serif" size="2">Common
Shares. Therefore, there can be no assurance that the Fund's use </font><font face="Arial, Helvetica, sans-serif" size="2">of leverage will result in a higher yield on the Common Shares, and it may </font><font
face="Arial, Helvetica, sans-serif" size="2">result in losses. In addition, any preferred shares issued by the Fund are </font><font face="Arial, Helvetica, sans-serif" size="2">expected to pay cumulative dividends, which may tend to increase
leverage </font><font face="Arial, Helvetica, sans-serif" size="2">risk. </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Leverage creates several major types of risks for Common Shareholders, including:</font></p>
<p style="padding:0;margin:0;"> <div face="Arial, Helvetica, sans-serif" size="2" style="padding-left:8;position: absolute; height:1em; text-align:left; margin:0;valing:top;">&#9632;</div> <p style="padding-left:24;margin:0;"><font
face="Arial, Helvetica, sans-serif" size="2">the likelihood of greater volatility of NAV and market price of the Common Shares, and of the investment return to Common Shareholders, than a comparable portfolio without leverage;</font></p> <p></p>
<p style="padding:0;margin:0;"> <div face="Arial, Helvetica, sans-serif" size="2" style="padding-left:8;position: absolute; height:1em; text-align:left; margin:0;valing:top;">&#9632;</div> <p style="padding-left:24;margin:0;"><font
face="Arial, Helvetica, sans-serif" size="2">the possibility either that the Common Share dividends will fall if the interest and other costs of leverage rise, or that dividends paid on Common Shares will fluctuate because such costs vary over time;
and</font></p> <p></p> <p style="padding:0;margin:0;"> <div face="Arial, Helvetica, sans-serif" size="2" style="padding-left:8;position: absolute; height:1em; text-align:left; margin:0;valing:top;">&#9632;</div> <p style="padding-left:24;margin:0;"><font
face="Arial, Helvetica, sans-serif" size="2">the effects of leverage in a declining market or a rising interest rate environment, as leverage is likely to cause a greater decline in the NAV of the Common Shares than if the Fund were not leveraged
and may result in a greater decline the market value of the Common Shares.</font></p> <p></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">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.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">The use by the Fund of reverse repurchase agreements and dollar rolls to </font><font face="Arial, Helvetica, sans-serif" size="2">obtain leverage also involves special risks. For instance, the market
value of </font><font face="Arial, Helvetica, sans-serif" size="2">the securities that the Fund is obligated to repurchase under a reverse </font><font face="Arial, Helvetica, sans-serif" size="2">repurchase agreement or dollar roll may decline
below the repurchase price. </font><font face="Arial, Helvetica, sans-serif" size="2">See "The Fund's Investment Objectives and Policies&#8212;Portfolio Contents </font><font face="Arial, Helvetica, sans-serif" size="2">and Other
Information&#8211;&#8211;Reverse Repurchase Agreements and Dollar Rolls." </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">In addition to reverse repurchase
agreements, dollar rolls and/or borrowings (or a future issuance of preferred shares), the Fund may engage in other transactions 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, basis swaps and other derivative transactions, loans of portfolio securities, short sales and when-issued, delayed delivery and forward commitment transactions). 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. The Fund manages some of its derivative positions by segregating an
amount&#160;of cash or liquid securities equal to the notional value or the market value, as applicable, of those positions. See "Principal Risks of the Fund&#8212;Segregation and Coverage Risk." The Fund may also offset derivatives positions
against one another or against other assets to manage effective market exposure resulting from derivatives in its portfolio. 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. See "Use of Leverage."</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The SEC has issued a proposed rule
relating to a registered investment company's use of derivatives and related instruments that, if adopted, could potentially require the Fund to reduce its use of leverage and/or observe more stringent asset coverage and related requirements than
are currently imposed by the 1940 Act, which could adversely affect the value or performance of the Fund and the Common Shares.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">Because the fees received by the Investment Manager are based on the average daily "total managed assets" of the Fund (including assets attributable to any reverse repurchase agreements, dollar rolls,
borrowings and preferred shares that may be outstanding) minus accrued liabilities (other than liabilities representing reverse repurchase agreements, dollar rolls and borrowings), the Investment Manager has a financial incentive for the Fund to use
certain forms of leverage (e.g., reverse repurchase agreements, dollar rolls and borrowings) or to issue preferred shares, which may create a conflict of interest between the Investment Manager, on the one hand, and the Common Shareholders, on the
other hand.</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Segregation and Coverage Risk<br> </b></b></font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2">Certain portfolio management techniques, such as, among other things, </font><font face="Arial, Helvetica, sans-serif" size="2">using reverse repurchase agreements or dollar rolls, purchasing
securities on </font><font face="Arial, Helvetica, sans-serif" size="2">a when-issued or delayed delivery basis, entering into swap agreements, </font><font face="Arial, Helvetica, sans-serif" size="2">futures contracts or other derivative
transactions, or engaging in short sales, </font><font face="Arial, Helvetica, sans-serif" size="2">may be considered senior securities unless steps are taken to segregate the </font><font face="Arial, Helvetica, sans-serif" size="2">Fund's assets
or otherwise cover its obligations. To avoid having these </font><font face="Arial, Helvetica, sans-serif" size="2">instruments considered senior securities, the Fund may segregate liquid
</font><font face="Arial, Helvetica, sans-serif" size="2">assets with a value equal (on a daily mark-to-market basis) to its </font><font face="Arial, Helvetica, sans-serif" size="2">obligations under these types of leveraged transactions, enter
into offsetting </font><font face="Arial, Helvetica, sans-serif" size="2">transactions or otherwise cover such transactions. See "Use of Leverage" in </font><font face="Arial, Helvetica, sans-serif" size="2">this prospectus. The Fund may be unable
to use such segregated assets for </font><font face="Arial, Helvetica, sans-serif" size="2">certain other purposes, which could result in the Fund earning a lower </font><font face="Arial, Helvetica, sans-serif" size="2">return on its portfolio than
it might otherwise earn if it did not have to </font><font face="Arial, Helvetica, sans-serif" size="2">segregate those assets in respect of, or otherwise cover such portfolio </font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
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<td align="left" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">20 &#160;&#160;&#160;&#160; </FONT></p> </td>
<td align="left" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><b>PROSPECTUS</b> | PIMCO Dynamic Income Fund &#160;&#160;&#160;&#160; </FONT></p> </td> </tr>
</table><hr style="size:3;color:#999999;width:100%;"> <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;
</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
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<td align="right" width="29.5%" colspan="3"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
<tr>
<td align="right" width="29.5%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2">positions. To the extent the Fund's assets are
segregated or committed as </font><font face="Arial, Helvetica, sans-serif" size="2">cover, it could limit the Fund's investment flexibility. Segregating assets and </font><font face="Arial, Helvetica, sans-serif" size="2">covering positions will
not limit or offset losses on related positions. </font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Derivatives Risk<br> </b></b></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">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, as well as to leverage its portfolio. The Fund
may use derivatives to gain exposure to securities markets in which it may invest (e.g., pending investment of the proceeds of this offering in individual securities, as well as on an ongoing basis). The Fund may also use derivatives to add leverage
to its portfolio. See "Principal Risks of the Fund&#8212;Leverage Risk." Derivatives transactions that the Fund may utilize include, but are not limited to, purchases or sales 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. The Fund may also have exposure to derivatives, such as interest rate or credit default swaps, through investment in credit-linked
trust certificates and other securities issued by special purpose or structured vehicles. The Fund's use of derivative instruments involves risks different from, and possibly greater than, the risks associated with investing directly in securities
and other traditional investments. Derivatives are subject to a number of risks described elsewhere in this prospectus, such as liquidity risk, interest rate risk, issuer risk, credit risk, leveraging risk, counterparty risk and management risk. See
also "Principal Risks of the Fund&#8212;Segregation and Coverage Risk." They also involve the risk of mispricing or improper valuation, the risk of unfavorable or ambiguous documentation and the risk that&#160;changes in the value of the derivative
may not correlate perfectly with the underlying asset, rate or index. If the Fund invests in a derivative instrument, it could lose more than the principal amount invested. 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. The Fund's use of derivatives also may affect the amount, timing or character of
distributions to, and taxes payable by, Common Shareholders. See "Tax Matters." Over-the-counter ("OTC") derivative transactions are also subject to the risk that a counterparty to the transaction will not fulfill its contractual obligations to the
other party, as many of the protections afforded to centrally-cleared derivative transactions might not be available for OTC derivatives transactions. For derivatives traded on an exchange or through a central counterparty, credit risk resides with
the creditworthiness of the Fund's clearing broker, or the clearinghouse itself, rather than with a counterparty in an OTC derivative transaction.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">The regulation of the derivatives markets has increased over the past </font><font face="Arial, Helvetica, sans-serif" size="2">several years, and additional future regulation of the derivatives markets
</font><font face="Arial, Helvetica, sans-serif" size="2">may make derivatives more costly, may limit the availability or reduce the </font><font face="Arial, Helvetica, sans-serif" size="2">liquidity of derivatives, or may otherwise adversely
affect the value or </font><font face="Arial, Helvetica, sans-serif" size="2">performance of derivatives. Any such adverse future developments could </font><font face="Arial, Helvetica, sans-serif" size="2">impair the effectiveness of the Fund's
derivative transactions and cause the </font><font face="Arial, Helvetica, sans-serif" size="2">Fund to lose value. For instance, in December 2015, the SEC proposed new </font><font face="Arial, Helvetica, sans-serif" size="2">regulations applicable
to a registered investment company's use of </font><font face="Arial, Helvetica, sans-serif" size="2">derivatives and related instruments. If adopted as proposed, these </font><font face="Arial, Helvetica, sans-serif" size="2">regulations could
significantly limit or impact the Fund's ability to invest in </font><font face="Arial, Helvetica, sans-serif" size="2">derivatives and other instruments, limit the Fund's ability to employ certain </font><font
face="Arial, Helvetica, sans-serif" size="2">strategies that use derivatives and/or adversely affect the Fund's </font><font face="Arial, Helvetica, sans-serif" size="2">performance, efficiency in implementing its strategy, liquidity and/or ability
</font><font face="Arial, Helvetica, sans-serif" size="2">to pursue its investment objectives. </font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Credit Default Swaps Risk<br>
</b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">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 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 since if an event of default occurs, the
seller must pay the buyer the full notional value of the reference obligation. See "Principal Risks of the Fund&#8212;Leverage Risk."</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">Although the Fund may seek to realize gains by selling credit default swaps that increase in value, to realize gains on selling credit default swaps, an active secondary market for such instruments must
exist or the Fund must otherwise be able to close out these transactions at advantageous times. In addition to the risk of losses described above, if no such secondary market exists or the Fund is otherwise unable to close out these transactions at
advantageous times, selling credit default swaps may not be profitable for the Fund.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The market for credit default
swaps has become more volatile in recent years 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 in the case of a cleared credit default swap or another third party in the case of an uncleared credit default swap). 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.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font
face="Arial, Helvetica, sans-serif" size="3"><b><b>Counterparty Risk<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund will be subject to credit
risk with respect to the counterparties to </font><font face="Arial, Helvetica, sans-serif" size="2">the derivative contracts and other instruments entered into by the Fund or </font><font face="Arial, Helvetica, sans-serif" size="2">held by special
purpose or structured vehicles in which the Fund invests. In </font><font face="Arial, Helvetica, sans-serif" size="2">the event that the Fund enters into a derivative transaction with a
</font><font face="Arial, Helvetica, sans-serif" size="2">counterparty that subsequently becomes insolvent or becomes the subject </font><font face="Arial, Helvetica, sans-serif" size="2">of a bankruptcy case, the derivative transaction may be
terminated in </font><font face="Arial, Helvetica, sans-serif" size="2">accordance with its terms and the Fund's ability to realize its rights under </font><font face="Arial, Helvetica, sans-serif" size="2">the derivative instrument and its ability
to distribute the proceeds could be </font><font face="Arial, Helvetica, sans-serif" size="2">adversely affected. If a counterparty becomes bankrupt or otherwise fails to </font><font face="Arial, Helvetica, sans-serif" size="2">perform its
obligations under a derivative contract due to financial </font><font face="Arial, Helvetica, sans-serif" size="2">difficulties, the Fund may experience significant delays in obtaining any
</font><font face="Arial, Helvetica, sans-serif" size="2">recovery (including recovery of any collateral it has provided to the </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
<table width="100%">
<tr>
<td align="right" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">December 21, 2017 | <b>PROSPECTUS</b></FONT></p> </td>
<td align="right" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">21</FONT></p> </td> </tr> </table><hr style="size:3;color:#999999;width:100%;">
<DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
<tr>
<td align="left" width="29.5%" colspan="3"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>PIMCO Dynamic Income Fund</b></FONT></p> </td> </tr>
<tr>
<td align="left" width="29.5%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2">counterparty) in a dissolution, assignment for the
benefit of creditors, </font><font face="Arial, Helvetica, sans-serif" size="2">liquidation, winding-up, bankruptcy, or other analogous proceeding. In </font><font face="Arial, Helvetica, sans-serif" size="2">addition, in the event of the insolvency
of a counterparty to a derivative </font><font face="Arial, Helvetica, sans-serif" size="2">transaction, the derivative transaction would typically be terminated at its </font><font face="Arial, Helvetica, sans-serif" size="2">fair market value. If
the Fund is owed this fair market value in the </font><font face="Arial, Helvetica, sans-serif" size="2">termination of the derivative transaction and its claim is unsecured, the </font><font face="Arial, Helvetica, sans-serif" size="2">Fund will be
treated as a general creditor of such counterparty, and will not </font><font face="Arial, Helvetica, sans-serif" size="2">have any claim with respect to any underlying security or asset. The Fund </font><font
face="Arial, Helvetica, sans-serif" size="2">may obtain only a limited recovery or may obtain no recovery in such </font><font face="Arial, Helvetica, sans-serif" size="2">circumstances. </font></p>
<p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Equity Securities and Related Market Risk<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Subject to the
Fund's investment policies, the Fund may hold common stocks and other equity securities from time to time, including without limit those it has received through the conversion of a convertible security held by the Fund or in connection with the
restructuring of a debt security. The market price of common stocks and other equity securities may go up or down, sometimes rapidly or unpredictably. Equity securities may decline in value due to factors affecting equity securities markets
generally, particular industries represented in those markets, or the issuer itself. See "Principal Risks of the Fund&#8212;Issuer Risk." The values of equity 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 interest or currency rates or adverse investor sentiment generally. They may also decline due to
factors that affect a particular industry or industries, such as labor shortages or increased production costs and competitive conditions within an industry. Equity securities generally have greater price volatility than bonds and other debt
securities.</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Preferred Securities Risk<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">In
addition to equity securities risk (see "Principal Risks of the Fund&#8212;Equity </font><font face="Arial, Helvetica, sans-serif" size="2">Securities and Related Market Risk"), credit risk (see "Principal Risks of the </font><font
face="Arial, Helvetica, sans-serif" size="2">Fund&#8212;Credit Risk") and possibly high yield risk (see "Principal Risks of the </font><font face="Arial, Helvetica, sans-serif" size="2">Fund&#8212;High Yield Securities Risk"), investment in
preferred securities </font><font face="Arial, Helvetica, sans-serif" size="2">involves certain other risks. Certain preferred securities contain provisions </font><font face="Arial, Helvetica, sans-serif" size="2">that allow an issuer under certain
conditions to skip or defer distributions. If </font><font face="Arial, Helvetica, sans-serif" size="2">the Fund owns a preferred security that is deferring its distribution, the Fund </font><font face="Arial, Helvetica, sans-serif" size="2">may be
required to include the amount of the deferred distribution in its </font><font face="Arial, Helvetica, sans-serif" size="2">taxable income for tax purposes although it does not currently receive such </font><font
face="Arial, Helvetica, sans-serif" size="2">amount in cash. In order to receive the special treatment accorded to </font><font face="Arial, Helvetica, sans-serif" size="2">regulated investment companies and their shareholders under the Code </font><font
face="Arial, Helvetica, sans-serif" size="2">and to avoid U.S. federal income and/or excise taxes at the Fund level, the </font><font face="Arial, Helvetica, sans-serif" size="2">Fund may be required to distribute this income to shareholders in the
tax </font><font face="Arial, Helvetica, sans-serif" size="2">year in which the income is recognized (without a corresponding receipt of </font><font face="Arial, Helvetica, sans-serif" size="2">cash). Therefore, the Fund may be required to pay out
as an income </font><font face="Arial, Helvetica, sans-serif" size="2">distribution in any such tax year an amount greater than the total amount </font><font face="Arial, Helvetica, sans-serif" size="2">of cash income the Fund actually received, and
to sell portfolio securities, </font><font face="Arial, Helvetica, sans-serif" size="2">including at potentially disadvantageous times or prices, to obtain cash </font><font face="Arial, Helvetica, sans-serif" size="2">needed for these income
distributions. Preferred securities often are subject </font><font face="Arial, Helvetica, sans-serif" size="2">to legal provisions that allow for redemption in the event of certain tax or
</font><font face="Arial, Helvetica, sans-serif" size="2">legal changes or at the issuer's call. In the event of redemption, the Fund </font><font face="Arial, Helvetica, sans-serif" size="2">may not be able to reinvest the proceeds at comparable
rates of return. </font><font face="Arial, Helvetica, sans-serif" size="2">Preferred securities are subordinated to bonds and other debt securities in </font><font face="Arial, Helvetica, sans-serif" size="2">an issuer's capital structure in terms
of priority for corporate income and </font><font face="Arial, Helvetica, sans-serif" size="2">liquidation payments, and therefore will be subject to greater credit risk </font><font face="Arial, Helvetica, sans-serif" size="2">than those debt
securities. Preferred securities may trade less frequently and </font><font face="Arial, Helvetica, sans-serif" size="2">in a more limited volume and may be subject to more abrupt or erratic price </font><font
face="Arial, Helvetica, sans-serif" size="2">movements than many other securities, such as common stocks, corporate </font><font face="Arial, Helvetica, sans-serif" size="2">debt securities and U.S. Government securities. </font></p>
<p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Confidential Information Access Risk<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">In managing the Fund,
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 limit, 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&#160;not publicly available. Pursuant to applicable policies and procedures, PIMCO may (but is not required to) seek to avoid receipt of Confidential Information from the 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 (e.g., other securities issued by the bank used in the example above). 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.</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Inflation/Deflation Risk<br> </b></b></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">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. 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.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p>
<p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Risk of Regulatory Changes<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Legal, tax and regulatory
changes could occur and may adversely affect the </font><font face="Arial, Helvetica, sans-serif" size="2">Fund and its ability to pursue its investment strategies and/or increase the </font><font face="Arial, Helvetica, sans-serif" size="2">costs
of implementing such strategies. New (or revised) laws or regulations </font><font face="Arial, Helvetica, sans-serif" size="2">may be imposed by the U.S. Commodity Futures Trading Commission
</font><font face="Arial, Helvetica, sans-serif" size="2">("CFTC"), the SEC, the U.S. Internal Revenue Service ("IRS"), the U.S. </font><font face="Arial, Helvetica, sans-serif" size="2">Federal Reserve or other banking regulators, other
governmental regulatory </font><font face="Arial, Helvetica, sans-serif" size="2">authorities or self-regulatory organizations that supervise the financial </font><font face="Arial, Helvetica, sans-serif" size="2">markets that could adversely affect
the Fund. In particular, these agencies </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
<table width="100%">
<tr>
<td align="left" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">22 &#160;&#160;&#160;&#160; </FONT></p> </td>
<td align="left" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><b>PROSPECTUS</b> | PIMCO Dynamic Income Fund &#160;&#160;&#160;&#160; </FONT></p> </td> </tr>
</table><hr style="size:3;color:#999999;width:100%;"> <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;
</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
<tr>
<td align="right" width="29.5%" colspan="3"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
<tr>
<td align="right" width="29.5%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2">are implementing a variety of new rules pursuant
to financial reform </font><font face="Arial, Helvetica, sans-serif" size="2">legislation in the United States. The EU (and some other countries) are </font><font face="Arial, Helvetica, sans-serif" size="2">implementing similar requirements. The
Fund also may be adversely </font><font face="Arial, Helvetica, sans-serif" size="2">affected by changes in the enforcement or interpretation of existing statutes </font><font face="Arial, Helvetica, sans-serif" size="2">and rules by these
governmental regulatory authorities or self-regulatory </font><font face="Arial, Helvetica, sans-serif" size="2">organizations. </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">In addition, the securities and futures markets are
subject to comprehensive statutes, regulations and margin requirements. The CFTC, the SEC, the Federal Deposit Insurance Corporation, other regulators and self-regulatory organizations and exchanges are authorized under these statutes, regulations
and otherwise to take extraordinary actions in the event of market emergencies. 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.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The CFTC and certain futures exchanges have
established limits, referred to as "position limits," on the maximum net long or net short positions which any person may hold or control in particular options and futures contracts. The CFTC has proposed position limits for certain swaps. All
positions owned or controlled by the same person or entity, even if in different accounts, may be aggregated for purposes of determining whether the applicable position limits have been exceeded. Thus, even if the Fund does not intend to exceed
applicable position limits, it is possible that different clients managed by the Investment Manager and their related parties may be aggregated for this purpose. Therefore it is possible that the trading decisions of Investment Manager may have to
be modified and that positions held by the Fund may have to be liquidated in order to avoid exceeding such limits. The modification of investment decisions or the elimination of open positions, if it occurs, may adversely affect the performance of
the Fund.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The SEC has in the past adopted interim rules requiring reporting of all short positions above a certain
<i>de minimis</i> threshold and may adopt rules requiring monthly public disclosure in the future. In addition, other&#160;non-U.S. jurisdictions where the Fund may trade have adopted reporting requirements. If the Fund's short positions or its
strategy become generally known, it could have a significant effect on the Investment Manager's ability to implement its investment strategy. In particular, it would make it more likely that other investors could cause a short squeeze in the
securities held short by the Fund forcing the Fund to cover its positions at a loss. Such reporting requirements may also limit the Investment Manager's ability to access management and other personnel at certain companies where the Investment
Manager seeks to take a short position. In addition, if other investors engage in copycat behavior by taking positions in the same issuers as the Fund, the cost of borrowing securities to sell short could increase drastically and the availability of
such securities to the Fund could decrease drastically. Such events could make the Fund unable to execute its investment strategy. In addition, if the SEC were to adopt restrictions regarding short sales, they could restrict the Fund's ability to
engage in short sales in certain circumstances, and the Fund may be unable to execute its investment strategies as a result.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">The SEC and regulatory authorities in other jurisdictions may adopt (and in </font><font face="Arial, Helvetica, sans-serif" size="2">certain cases, have adopted) bans on short sales of certain securities
in </font><font face="Arial, Helvetica, sans-serif" size="2">response to market events. Bans on short selling may make it impossible for </font><font face="Arial, Helvetica, sans-serif" size="2">the Fund to execute certain investment strategies and
may have a material </font><font face="Arial, Helvetica, sans-serif" size="2">adverse effect on the Fund's ability to generate returns. </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">Recently adopted rules implementing the credit risk retention requirements of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act"), for asset-backed securities will require
the sponsor of certain securitization vehicles (or a majority owned affiliate of such sponsor) to retain, and to refrain from transferring, selling, conveying to a third party, or hedging 5% of the credit risk in assets transferred, sold, or
conveyed through the issuance of the asset-backed securities of such vehicle, subject to certain exceptions. The rules apply to offerings of residential mortgage-backed securities (RMBS) occurring on and after December 24, 2015 and to offerings of
other types of asset-backed securities occurring on and after December 24, 2016, subject to certain exceptions. In addition, a refinancing of, or a significant amendment to, a securitization that closed prior to such date may in certain cases result
in the application of the rules to a securitization that was previously not subject to the Dodd-Frank risk retention requirements. The impact of the risk retention rules on the securitization markets is uncertain. These requirements may increase the
costs to originators, securitizers, and, in certain cases, collateral managers of securitization vehicles in which the Fund may invest, which costs could be passed along to such Fund as an investor in such vehicles. In addition, the costs imposed by
the risk retention rules on originators, securitizers and/or collateral managers may result in a reduction of the number of new offerings of asset-backed securities and thus in fewer investment opportunities for the Fund. A reduction in the number
of new securitizations could also reduce liquidity in the markets for certain types of financial assets that are typically held by securitization vehicles, which in turn could negatively affect the returns on the Fund's investment in asset-backed
securities.</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Regulatory Risk &#8211; Commodity Pool Operator<br> </b></b></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">The CFTC has adopted regulations that subject registered investment companies and their investment advisers to regulation by the CFTC if the registered investment company invests more than a prescribed
level of its liquidation value in futures, options on futures or commodities, swaps, or other financial instruments regulated under the Commodity Exchange Act ("CEA") and the rules thereunder ("commodity interests"), or if the Fund markets itself as
providing investment exposure to such instruments. The Investment Manager is registered as a "commodity pool operator" ("CPO") under the CEA, however, with respect to the Fund, the Investment Manager has claimed an exclusion from registration as a
CPO pursuant to CFTC Rule 4.5. For the Investment Manager to remain eligible for this exclusion, the Fund must comply with certain limitations, including limits on its ability to use any commodity interests and limits on the manner in which the Fund
holds out its use of such commodity interests. These limitations may restrict the Fund's ability to pursue its investment objectives and strategies, increase the costs of implementing its strategies, result in higher expenses for the Fund, and/or
adversely affect the Fund's total return. Further, in the event the Investment Manager becomes unable to rely on the exclusion in CFTC Rule 4.5 with respect to the Fund and is required to register as a CPO with respect to the Fund, the Investment
Manager will be subject to additional regulation and its expenses may increase.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
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<td align="right" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">December 21, 2017 | <b>PROSPECTUS</b></FONT></p> </td>
<td align="right" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">23</FONT></p> </td> </tr> </table><hr style="size:3;color:#999999;width:100%;">
<DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p>
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<td align="left" width="29.5%" colspan="3"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>PIMCO Dynamic Income Fund</b></FONT></p> </td> </tr>
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<td align="left" width="29.5%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table>
<p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Liquidity Risk<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Liquidity risk exists when particular
investments are difficult to purchase or sell at the time that the Fund would like or at the price that the Fund believes such investments are currently worth. Many of the Fund's investments may be illiquid. Illiquid securities may become harder to
value, especially in changing markets. The Fund's investments in illiquid securities may reduce the returns of the Fund because it may be unable to sell the illiquid securities 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. 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. 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 corporate bonds, which provide a core indication of the ability of financial intermediaries to "make markets," are at or near
historic lows in relation to market size. Because market makers seek to provide stability to a market through their intermediary services, the significant reduction in dealer inventories could potentially lead to decreased liquidity and increased
volatility in the fixed income markets. Such issues may be exacerbated during periods of economic uncertainty. In such cases, the Fund, due to limitations on investments in illiquid securities and the difficulty in purchasing and selling such
securities or instruments, may be unable to achieve its desired level of exposure to a certain sector. To the extent that the Fund's principal investment strategies involve securities of companies with smaller market capitalizations, foreign
(non-U.S.) securities, Rule 144A securities, senior loans, illiquid sectors of fixed income securities, derivatives or securities with substantial market and/or credit risk, the Fund will tend to have the greatest exposure to liquidity risk.
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. 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. See "Principal Risks of the Fund&#8212;Valuation
Risk."</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Tax Risk<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund has elected to be
treated as a "regulated investment company" </font><font face="Arial, Helvetica, sans-serif" size="2">under the Code and intends each year to qualify and be eligible to be </font><font face="Arial, Helvetica, sans-serif" size="2">treated as such, so
that it generally will not be subject to U.S. federal </font><font face="Arial, Helvetica, sans-serif" size="2">income tax on its net investment income or net short-term or long-term </font><font face="Arial, Helvetica, sans-serif" size="2">capital
gains, distributed (or deemed distributed, as described below) to </font><font face="Arial, Helvetica, sans-serif" size="2">shareholders. In order to qualify for such treatment, the Fund must meet </font><font
face="Arial, Helvetica, sans-serif" size="2">certain asset diversification tests and at least 90% of its gross income for </font><font face="Arial, Helvetica, sans-serif" size="2">such year must consist of certain types of qualifying income. Foreign
</font><font face="Arial, Helvetica, sans-serif" size="2">currency gains will generally be treated as qualifying income for purposes of </font><font face="Arial, Helvetica, sans-serif" size="2">the 90% gross income requirement. However, the U.S.
Treasury Department </font><font face="Arial, Helvetica, sans-serif" size="2">has authority to issue regulations in the future that could treat some or all </font><font face="Arial, Helvetica, sans-serif" size="2">of the Fund's foreign currency
gains as non-qualifying income, thereby </font><font face="Arial, Helvetica, sans-serif" size="2">jeopardizing the Fund's status as a regulated investment company for all </font><font face="Arial, Helvetica, sans-serif" size="2">years to which the
regulations are applicable. Income derived from some </font><font face="Arial, Helvetica, sans-serif" size="2">commodity-linked derivatives is not qualifying income, and the treatment of
</font><font face="Arial, Helvetica, sans-serif" size="2">income from some other commodity-linked derivatives is uncertain, for </font><font face="Arial, Helvetica, sans-serif" size="2">purposes of the 90% gross income test. If for any taxable year
the Fund </font><font face="Arial, Helvetica, sans-serif" size="2">were to fail to meet the income or diversification test described above, the </font><font face="Arial, Helvetica, sans-serif" size="2">Fund could in some cases cure such failure,
including by paying a fund-level </font><font face="Arial, Helvetica, sans-serif" size="2">tax and, in the case of a diversification test failure, disposing of certain </font><font face="Arial, Helvetica, sans-serif" size="2">assets. </font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">If, in any year, the Fund were to fail to qualify for treatment as a regulated investment company 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 a further tax to the extent of the Fund's current or accumulated
earnings and profits.</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Market Disruption and Geopolitical Risk</b></b></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">The wars with Iraq and Afghanistan and similar conflicts and geopolitical developments, their aftermath and substantial military presence in Afghanistan, along with instability in North Korea, Pakistan,
Egypt, Libya, Syria, Russia, Ukraine, Yemen and the Middle East, possible terrorist attacks in the United States and around the world, growing social and political discord in the United States, the European debt crisis, the response of the
international community&#8212;through economic sanctions and otherwise&#8212;to Russia's recent annexation of the Crimea region of Ukraine and posture vis-a-vis Ukraine, further downgrade of U.S. Government securities, the outbreak of infectious
diseases such as Ebola and other similar events may have long-term effects on the U.S. and worldwide financial markets and may cause further economic uncertainties in the United States and worldwide. The potential costs of rebuilding infrastructure
cannot be predicted with any certainty. Terrorist attacks on the World Trade Center and the Pentagon on September 11, 2001 closed some of the U.S. securities markets for a four-day period and similar future events cannot be ruled out. The war and
occupation, terrorism and related geopolitical risks have led, and may in the future lead, to increased short-term market volatility and may have adverse long-term effects on U.S. and world economies and markets generally. Likewise, natural and
environmental disasters, such as the earthquake and tsunami in Japan in early 2011, and systemic market dislocations of the kind surrounding the insolvency of Lehman Brothers in 2008, if repeated, could be highly disruptive to economies and markets.
Those events, as well as other changes in foreign and domestic economic and political conditions also could have an acute effect on individual issuers or related groups of issuers. These risks also could adversely affect individual issuers and
securities markets, interest rates, secondary trading, ratings, credit risk, inflation, deflation and other factors relating to the Fund's investments and the market value and NAV of the Fund's Common Shares.</font></p>
<p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Subsidiary Risk<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">By investing through its Subsidiaries, the
Fund is exposed to the risks associated with the Subsidiaries&#8217; investments. The Subsidiaries are not registered as investment companies under the 1940 Act and are not subject to all of the investor protections of the 1940 Act, although each
Subsidiary is managed pursuant to the compliance policies and procedures of the Fund applicable to it. 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 described in this prospectus and could adversely affect the Fund.</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Portfolio Turnover
Risk<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Investment Manager manages the Fund without regard generally to </font><font face="Arial, Helvetica, sans-serif" size="2">restrictions on portfolio turnover.
Trading in fixed income securities does not </font><font face="Arial, Helvetica, sans-serif" size="2">generally involve the payment of brokerage commissions, but does involve </font><font face="Arial, Helvetica, sans-serif" size="2">indirect
transaction costs. Higher portfolio turnover involves correspondingly </font><font face="Arial, Helvetica, sans-serif" size="2">greater expenses to the Fund, including brokerage commissions or dealer </font><font
face="Arial, Helvetica, sans-serif" size="2">mark-ups and other transaction costs on the sale of securities and </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
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<td align="left" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">24 &#160;&#160;&#160;&#160; </FONT></p> </td>
<td align="left" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><b>PROSPECTUS</b> | PIMCO Dynamic Income Fund &#160;&#160;&#160;&#160; </FONT></p> </td> </tr>
</table><hr style="size:3;color:#999999;width:100%;"> <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;
</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p>
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<td align="right" width="29.5%" colspan="3"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
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<td align="right" width="29.5%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2">reinvestments in other securities. The higher
the rate of portfolio turnover of </font><font face="Arial, Helvetica, sans-serif" size="2">the Fund, the higher these transaction costs borne by the Fund generally </font><font face="Arial, Helvetica, sans-serif" size="2">will be. Such sales may
result in realization of taxable capital gains </font><font face="Arial, Helvetica, sans-serif" size="2">(including short-term capital gains, which are generally taxed to </font><font face="Arial, Helvetica, sans-serif" size="2">shareholders at
ordinary income tax rates when distributed net of short-</font><font face="Arial, Helvetica, sans-serif" size="2">term capital losses and net long-term capital losses), and may adversely
</font><font face="Arial, Helvetica, sans-serif" size="2">affect the Fund's after-tax returns. See "Tax Matters." </font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Operational
Risk<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">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.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p>
<p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Cyber Security Risk<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">As the use of technology has become
more prevalent in the course of business, the Fund has become potentially more susceptible to operational and informational security risks resulting from breaches in cyber security. A breach in cyber security refers to both intentional and
unintentional cyber events that may, among other things, cause the Fund to lose proprietary information, suffer data corruption and/or destruction, or lose operational capacity, resulting in the unauthorized release or other misuse of confidential
information, or otherwise disrupt normal business operations. Cyber security breaches may involve unauthorized access to the Fund's digital information systems (e.g., through "hacking" or malicious software coding), but may also result from outside
attacks such as denial-of-service attacks (i.e., efforts to make network services unavailable to intended users). In addition, cyber security breaches involving the Fund's third party service providers (including but not limited to advisers,
administrators, transfer agents, custodians, 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.
Moreover, cyber security 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.</font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Cyber security failures or breaches may result in financial losses to the Fund and its shareholders. 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; reputational damage; reimbursement or other compensation costs; additional compliance costs and cyber security risk management costs and other adverse
consequences. In addition, substantial costs may be incurred in an attempt to prevent any cyber incidents in the future.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2">Like with operational risk in general, the Fund has established risk </font><font face="Arial, Helvetica, sans-serif" size="2">management systems and business continuity plans designed to reduce
the </font><font face="Arial, Helvetica, sans-serif" size="2">risks associated with cyber security. However, there are inherent limitations </font><font face="Arial, Helvetica, sans-serif" size="2">in these plans and systems, including that certain
risks may not have been </font><font face="Arial, Helvetica, sans-serif" size="2">identified, in large part because different or unknown threats may emerge </font><font face="Arial, Helvetica, sans-serif" size="2">in the future. As such, there is no
guarantee that such efforts will succeed, </font><font face="Arial, Helvetica, sans-serif" size="2">especially because the Fund does not directly control the cyber security </font><font face="Arial, Helvetica, sans-serif" size="2">systems of issuers
in which the Fund may invest, trading counterparties, or </font><font face="Arial, Helvetica, sans-serif" size="2">third party service providers to the Fund. There is also a risk that cyber
</font><font face="Arial, Helvetica, sans-serif" size="2">security breaches may not be detected. The Fund and its shareholders could </font><font face="Arial, Helvetica, sans-serif" size="2">be negatively impacted as a result. </font></p>
<p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Potential Conflicts of Interest Risk&#8212;Allocation of Investment Opportunities<br> </b></b></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Investment Manager is 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 Fund's 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 achieve profits on their trading for proprietary or other accounts. The Investment Manager has adopted policies and procedures reasonably designed to allocate investment opportunities on a fair and equitable basis
over time.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Repurchase Agreements Risk<br>
</b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">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. If the party agreeing to repurchase should default, the Fund will seek to sell the securities which it holds. This could involve
procedural costs or delays in addition to a loss on the securities if their value should fall below their repurchase price. Repurchase agreements maturing in more than seven days and which may not be terminated within seven days at approximately the
amount at which the Fund has valued the agreements are considered illiquid securities. These events could also trigger adverse tax consequences for the Fund.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p>
<p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Structured Investments Risk<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">The Fund may invest in structured products, including, structured notes, </font><font face="Arial, Helvetica, sans-serif" size="2">credit-linked notes and other types of structured products. Holders of
</font><font face="Arial, Helvetica, sans-serif" size="2">structured products bear risks of the underlying investments, index or </font><font face="Arial, Helvetica, sans-serif" size="2">reference obligation and are subject to counterparty risk. The
Fund may </font><font face="Arial, Helvetica, sans-serif" size="2">have the right to receive payments only from the structured product, and </font><font face="Arial, Helvetica, sans-serif" size="2">generally does not have direct rights against the
issuer or the entity that </font><font face="Arial, Helvetica, sans-serif" size="2">sold the assets to be securitized. While certain structured products enable </font><font face="Arial, Helvetica, sans-serif" size="2">the investor to acquire
interests in a pool of securities without the </font><font face="Arial, Helvetica, sans-serif" size="2">brokerage and other expenses associated with directly holding the same </font><font face="Arial, Helvetica, sans-serif" size="2">securities,
investors in structured products generally pay their share of the </font><font face="Arial, Helvetica, sans-serif" size="2">structured product's administrative and other expenses. Although it is </font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
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<td align="right" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">December 21, 2017 | <b>PROSPECTUS</b></FONT></p> </td>
<td align="right" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">25</FONT></p> </td> </tr> </table><hr style="size:3;color:#999999;width:100%;">
<DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p>
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<td align="left" width="29.5%" colspan="3"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>PIMCO Dynamic Income Fund</b></FONT></p> </td> </tr>
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<td align="left" width="29.5%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2">difficult to predict whether the prices of indices
and securities underlying </font><font face="Arial, Helvetica, sans-serif" size="2">structured products will rise or fall, these prices (and, therefore, the prices of </font><font face="Arial, Helvetica, sans-serif" size="2">structured products) are
generally influenced by the same types of political </font><font face="Arial, Helvetica, sans-serif" size="2">and economic events that affect issuers of securities and capital markets
</font><font face="Arial, Helvetica, sans-serif" size="2">generally. If the issuer of a structured product uses shorter term financing to </font><font face="Arial, Helvetica, sans-serif" size="2">purchase longer term securities, the issuer may be
forced to sell its securities </font><font face="Arial, Helvetica, sans-serif" size="2">at below market prices if it experiences difficulty in obtaining such </font><font face="Arial, Helvetica, sans-serif" size="2">financing, which may adversely
affect the value of the structured products </font><font face="Arial, Helvetica, sans-serif" size="2">owned by the Fund. Structured products generally entail risks associated </font><font face="Arial, Helvetica, sans-serif" size="2">with derivative
instruments. See "Principal Risks of the Fund&#8212;Derivatives </font><font face="Arial, Helvetica, sans-serif" size="2">Risk." </font></p>
<p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Collateralized Loan Obligations Risk<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund may invest in
CLOs. A CLO is a trust typically collateralized by a pool of loans issued by banks, corporations or any other public or private entity or person, which may include, among others, domestic and foreign senior secured loans, senior unsecured loans and
subordinate or mezzanine loans, including loans that may be rated below investment grade or equivalent unrated loans. CLOs may charge management fees and administrative expenses. The cash flows from the trust are split into two or more portions,
called tranches, varying in risk and yield. The riskiest portion is the equity tranche which generally bears losses in connection with the first defaults, if any, on the bonds or loans in the trust and serves to provide some measure of protection to
the other, more senior tranches from defaults. A senior tranche from a CLO trust typically has higher ratings and lower yields than the underlying securities, and can be rated investment grade. Despite the protection from the equity tranche, CLO
tranches can experience substantial losses due to actual defaults, increased sensitivity to defaults due to collateral default and disappearance of protecting tranches, market anticipation of defaults and aversion to CLO securities as a class. The
risks of an investment in a CLO depend largely on the type of the collateral securities and the class of the CLO in which the Fund invests. Normally, CLOs are privately offered and sold, and thus are not registered under the securities laws. As a
result, investments in CLOs may be characterized by the Fund as illiquid securities; however, an active dealer market may exist for CLOs allowing a CLO to qualify under Rule 144A under the 1933 Act. In addition to the normal risks associated with
debt instruments (e.g., interest rate risk and credit risk), CLOs carry additional risks including, but not limited to: (i) the possibility that distributions from the collateral will not be adequate to make interest or other payments; (ii) the
quality of the collateral may decline in value or default; (iii) the risk that the Fund may invest in CBOs, CLOs or other CDOs that are subordinate to other classes; and (iv) the complex structure of the security may not be fully understood at the
time of investment and may produce disputes with the issuer or others and may produce unexpected investment results.</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Certain
Affiliations<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Certain broker-dealers may be considered to be affiliated persons of the </font><font
face="Arial, Helvetica, sans-serif" size="2">Fund and/or the Investment Manager due to their possible affiliations with </font><font face="Arial, Helvetica, sans-serif" size="2">Allianz SE, the ultimate parent of the Investment Manager. Absent an
</font><font face="Arial, Helvetica, sans-serif" size="2">exemption from the SEC or other regulatory relief, the Fund is generally </font><font face="Arial, Helvetica, sans-serif" size="2">precluded from effecting certain principal transactions with
affiliated </font><font face="Arial, Helvetica, sans-serif" size="2">brokers, and its ability to purchase securities being underwritten by an </font><font face="Arial, Helvetica, sans-serif" size="2">affiliated broker or a syndicate including an
affiliated broker, or to utilize </font><font face="Arial, Helvetica, sans-serif" size="2">affiliated brokers for agency transactions, is subject to restrictions. This could </font><font face="Arial, Helvetica, sans-serif" size="2">limit the Fund's
ability to engage in securities transactions and take </font><font face="Arial, Helvetica, sans-serif" size="2">advantage of market opportunities. </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p>
<p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Anti-Takeover Provisions<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund's Amended and Restated
Agreement and Declaration of Trust (the "Declaration") 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." These provisions in the Declaration could have the effect of depriving the Common Shareholders of opportunities to sell their Common Shares at a premium over the then-current market price of the Common Shares or at
NAV.</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Fund Distribution Rates</b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Although the Fund may
seek to maintain stable distributions, 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. There can be no assurance that a change in market conditions or other factors will not result in a change in the Fund's distribution rate or that the rate will be sustainable in the future.</font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">For instance, during periods of low or declining interest rates, the Fund's distributable income and dividend levels may decline for many
reasons. For example, the Fund may have to deploy uninvested assets (whether from purchases of Fund shares, proceeds from matured, traded or called debt obligations or other sources) in new, lower yielding instruments. Additionally, payments from
certain instruments that may be held by the Fund (such as variable and floating rate securities) may be negatively impacted by declining interest rates, which may also lead to a decline in the Fund's distributable income and dividend
levels.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
<table width="100%">
<tr>
<td align="left" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">26 &#160;&#160;&#160;&#160; </FONT></p> </td>
<td align="left" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><b>PROSPECTUS</b> | PIMCO Dynamic Income Fund &#160;&#160;&#160;&#160; </FONT></p> </td> </tr>
</table><hr style="size:3;color:#999999;width:100%;"> <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;
</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p><a name="chapter_4_4636"></A><a name="chapter_4-sect1_1_4636"></A>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
<tr>
<td align="right" width="29.5%" colspan="3"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
<tr>
<td align="right" width="29.5%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font
face="Arial, Helvetica, sans-serif" size="3"><b>Summary of Fund Expenses<br> </b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The following table is intended to assist investors in understanding the fees and expenses
(annualized) that an investor in Common Shares of the Fund would bear, directly or indirectly, as a result of an offering. The table reflects the use of leverage in the form of reverse repurchase agreements in an amount equal to 45.31% of the Fund's
total managed assets (including assets attributable to reverse repurchase agreements), which reflects approximately the percentage of the Fund's total managed assets attributable to such leverage as of June 30, 2017, and shows Fund expenses as a
percentage of net assets attributable to Common Shares. The percentage above and information below do not reflect the Fund's use of other forms of economic leverage, such as credit default swaps or other derivative instruments. The table and example
below are based on the Fund's capital structure as of June 30, 2017. The extent of the Fund's assets attributable to leverage following an offering, and the Fund's associated expenses, are likely to vary (perhaps significantly) from these
assumptions.</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Shareholder Transaction Expenses<br> </b></b></font></p> <p style="margin-top:5px;margin-bottom:0px;"><FONT
SIZE="0.5" face="Arial, Helvetica, sans-serif">&#160;</FONT></p>
<table margin="0" cellspacing="0" cellpadding="0" border="0px" width="100%">
<tr>
<td valign="bottom" align="left" width="82%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">Sales load (as a percentage of offering price)<sup>(1)</sup></font></p> </td>
<td valign="bottom" align="center" width="18%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> [&#160;&#160;&#160;]% </font></p> </td> </tr>
<tr style="background-color:#d6f7fa;">
<td valign="bottom" align="left" width="82%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">Offering Expenses Borne by Common Shareholders (as a percentage of offering price)<sup>(2)</sup></font></p> </td>
<td valign="bottom" align="center" width="18%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> [&#160;&#160;&#160;]% </font></p> </td> </tr>
<tr>
<td valign="bottom" align="left" width="82%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">Dividend Reinvestment Plan Fees<sup>(3)</sup></font></p> </td>
<td valign="bottom" align="center" width="18%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> None </font></p> </td> </tr></table> <p style="padding:1px;margin:0px;">&#160;</p>
<p style="valign:top;align:left;padding-top:3px;padding-right:5px;padding-left:12px ;text-indent:-12px;margin:0px;"><font face="Arial, Helvetica, sans-serif" size="1">1</font><FONT SIZE="2" face="Arial, Helvetica, sans-serif">&#160;</FONT><font
face="Arial, Helvetica, sans-serif" size="1">In the event that the Common Shares to which this prospectus relates are sold to or through underwriters or dealer managers, a corresponding prospectus supplement will disclose the applicable sales load
and/or commission.</font></p> <p style="valign:top;align:left;padding-top:3px;padding-right:5px;padding-left:12px ;text-indent:-12px;margin:0px;"><font face="Arial, Helvetica, sans-serif" size="1">2</font><FONT
SIZE="2" face="Arial, Helvetica, sans-serif">&#160;</FONT><font face="Arial, Helvetica, sans-serif" size="1">The related prospectus supplement will disclose the estimated amount of offering expenses, the offering price and the offering expenses
borne by the Fund and indirectly by all of its Common Shareholders as a percentage of the offering price.</font></p> <p style="valign:top;align:left;padding-top:3px;padding-right:5px;padding-left:12px ;text-indent:-12px;margin:0px;"><font
face="Arial, Helvetica, sans-serif" size="1">3</font><FONT SIZE="2" face="Arial, Helvetica, sans-serif">&#160;</FONT><font face="Arial, Helvetica, sans-serif" size="1">You will pay brokerage charges if you direct your broker or the plan agent to
sell your Common Shares that you acquired pursuant to a dividend reinvestment plan. You may also pay a pro rata share of brokerage commissions incurred in connection with open-market purchases pursuant to the Fund's Dividend Reinvestment Plan. See
"Dividend Reinvestment Plan."</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Annual Expenses</b></b></font></p> <p style="margin-top:5px;margin-bottom:0px;"><FONT
SIZE="0.5" face="Arial, Helvetica, sans-serif">&#160;</FONT></p>
<table margin="0" cellspacing="0" cellpadding="0" border="0px" width="100%">
<tr>
<td valign="bottom" align="left" width="70%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="center" width="30%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b>Percentage of<br> Net Assets Attributable to Common Shares (reflecting leverage attributable to reverse
repurchase agreements)</b></font></p> </td> </tr>
<tr style="background-color:#d6f7fa;">
<td valign="bottom" align="left" width="70%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">Management Fees<sup>(1)</sup></font></p> </td>
<td valign="bottom" align="center" width="30%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 2.12% </font></p> </td> </tr>
<tr>
<td valign="bottom" align="left" width="70%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">Interest Payments on Borrowed Funds<sup>(2)</sup></font></p> </td>
<td valign="bottom" align="center" width="30%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">1.94%</font></p> </td> </tr>
<tr style="background-color:#d6f7fa;">
<td valign="bottom" align="left" width="70%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">Other Expenses<sup>(3)</sup></font></p> </td>
<td valign="bottom" align="center" width="30%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 0.02% </font></p> </td> </tr>
<tr>
<td valign="bottom" align="left" width="70%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b>Total Annual Expenses</b></font></p> </td>
<td valign="bottom" align="center" width="30%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b> 4.08% </b></font></p> </td> </tr></table> <p style="padding:1px;margin:0px;">&#160;</p>
<p style="valign:top;align:left;padding-top:3px;padding-right:5px;padding-left:12px ;text-indent:-12px;margin:0px;"><font face="Arial, Helvetica, sans-serif" size="1">1</font><FONT SIZE="2" face="Arial, Helvetica, sans-serif">&#160;</FONT><font
face="Arial, Helvetica, sans-serif" size="1">Management fees include fees payable to the Investment Manager for advisory services and for supervisory, administrative and other services. The Fund pays for the advisory, supervisory and administrative
services it requires under what is essentially an all-in fee structure (the "unified management fee"). Pursuant to an investment management agreement, PIMCO is paid a Management Fee of 1.15% of the Fund's total managed assets. The Fund (and not
PIMCO) will be responsible for certain fees and expenses, reflected in the table above, that are not covered by the unified management fee under the investment management agreement. Please see "Management of the Fund - Investment Management
Agreement" for an explanation of the unified management fee and definition of "total managed assets."</font></p> <p style="valign:top;align:left;padding-top:3px;padding-right:5px;padding-left:12px ;text-indent:-12px;margin:0px;"><font
face="Arial, Helvetica, sans-serif" size="1">2</font><FONT SIZE="2" face="Arial, Helvetica, sans-serif">&#160;</FONT><font face="Arial, Helvetica, sans-serif" size="1">Reflects the Fund's use of leverage in the form of reverse repurchase agreements
as of June 30, 2017, which represented 45.31% of the Fund's total managed assets (including assets attributable to reverse repurchase agreements) as of that date, at an annual interest rate cost to the Fund of 2.266%, which is based on current
market conditions. See "Use of Leverage&#8212;Effects of Leverage." The actual amount of interest expense borne by the Fund will vary over time in accordance with the level of the Fund's use of reverse repurchase agreements, dollar rolls and/or
borrowings and variations in market interest rates. Borrowing expense is required to be treated as an expense of the Fund for accounting purposes. Any associated income or gains (or losses) realized from leverage obtained through such instruments is
not reflected in the Annual Expenses table above, but would be reflected in the Fund's performance results.</font></p> <p style="valign:top;align:left;padding-top:3px;padding-right:5px;padding-left:12px ;text-indent:-12px;margin:0px;"><font
face="Arial, Helvetica, sans-serif" size="1">3</font><FONT SIZE="2" face="Arial, Helvetica, sans-serif">&#160;</FONT><font face="Arial, Helvetica, sans-serif" size="1">"Other Expenses" are estimated for the Fund's current fiscal year ending June 30,
2018.</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b>Example</b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The following example illustrates the expenses
that you would pay on a $1,000 investment in Common Shares of the Fund, assuming (1) that the Fund's net assets do not increase or decrease, (2) that the Fund incurs total annual expenses of 4.08% of net assets attributable to Common Shares in years
1 through 10 (assuming assets attributable to reverse repurchase agreements representing 45.31% of the Fund's total managed assets) and (3) a 5% annual return<sup>(1)</sup>:</font></p>
<table margin="0" cellspacing="0" cellpadding="0" border="0px" width="100%">
<tr>
<td valign="bottom" align="left" width="46%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="center" width="13.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b> 1 Year </b></font></p> </td>
<td valign="bottom" align="center" width="13.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b> 3 Years </b></font></p> </td>
<td valign="bottom" align="center" width="13.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b> 5 Years </b></font></p> </td>
<td valign="bottom" align="center" width="13.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b> 10 Years </b></font></p> </td> </tr>
<tr style="background-color:#d6f7fa;">
<td valign="bottom" align="left" width="46%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Total Expenses Incurred </font></p> </td>
<td valign="bottom" align="center" width="13.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $41 </font></p> </td>
<td valign="bottom" align="center" width="13.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $124 </font></p> </td>
<td valign="bottom" align="center" width="13.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $209 </font></p> </td>
<td valign="bottom" align="center" width="13.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $427 </font></p> </td> </tr></table> <p><font face="Arial, Helvetica, sans-serif" size="2"><font
face="Arial, Helvetica, sans-serif" size="1" ><sup>(1)</sup>&#160;<b>The example above should not be considered a representation of future expenses. Actual expenses may be higher or lower than those shown.</b> The example assumes that the estimated
Interest Payments on Borrowed Funds and Other Expenses set forth in the Annual Expenses table are accurate, that the rate listed under Total Annual Expenses remains the same each year and that all dividends and distributions are reinvested at NAV.
Actual expenses may be greater or less than those assumed. Moreover, the Fund's actual rate of return may be greater or less than the hypothetical 5% annual return shown in the example. The example does not include commissions or estimated offering
expenses, which would cause the expenses shown in the example to increase. In connection with an offering of Common Shares, the prospectus supplement will set forth an example including sales load and estimated offering costs.</font></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
<table width="100%">
<tr>
<td align="left" width="50%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><br>
<img src="g450385pr4636img005.jpg"><br></FONT></p> </td>
<td align="right" width="46.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">PIMCO Dynamic Income Fund | <b>PROSPECTUS</b></FONT></p> </td>
<td align="right" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">27</FONT></p> </td> </tr> </table><hr style="size:3;color:#999999;width:100%;">
<DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;
</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p><a name="chapter_5_4636"></A><a name="chapter_5-sect1_1_4636"></A>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
<tr>
<td align="right" width="29.5%" colspan="3"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
<tr>
<td align="right" width="29.5%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font
face="Arial, Helvetica, sans-serif" size="3"><b>Financial Highlights<br> </b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The information in the table below for the fiscal year ended June 30, 2017 and 2016, the period ended June
30, 2015<sup>(1)</sup>, and the fiscal years ended March 31, 2015, 2014, and 2013<sup>(2)</sup> is derived from the Fund's financial statements for the fiscal year ended June 30, 2017 audited by PricewaterhouseCoopers LLP ("PwC"), whose report on
such financial statements is contained in the Fund's June 30, 2017 Annual Report and is incorporated by reference into the Statement of Additional Information.</font></p>
<p style="valign:top;align:left;padding-top:3px;padding-right:5px;padding-left:12px ;text-indent:-12px;margin:0px;"><font face="Arial, Helvetica, sans-serif" size="1">1</font><FONT SIZE="2" face="Arial, Helvetica, sans-serif">&#160;</FONT><font
face="Arial, Helvetica, sans-serif" size="1">On December 16, 2014, the Board approved a change of the Fund's fiscal year end from March 31 to June 30. Information is provided for the "stub" period from April 1, 2015 through the<br> Fund's new fiscal
year end of June 30, 2015.</font></p> <p style="valign:top;align:left;padding-top:3px;padding-right:5px;padding-left:12px ;text-indent:-12px;margin:0px;"><font face="Arial, Helvetica, sans-serif" size="1">2</font><FONT
SIZE="2" face="Arial, Helvetica, sans-serif">&#160;</FONT><font face="Arial, Helvetica, sans-serif" size="1">The Fund commenced operations on May 30, 2012.</font></p> <p style="padding:1px;margin:0px;">&#160;</p>
<p style="margin-top:5px;margin-bottom:0px;"><FONT SIZE="0.5" face="Arial, Helvetica, sans-serif">&#160;</FONT></p>
<table margin="0" cellspacing="0" cellpadding="0" border="0px" width="100%">
<tr>
<td valign="bottom" align="left" width="17.2%" colspan="4"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="center" width="0.5%" colspan="9"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b> Investment Operations </b></font></p> </td>
<td valign="bottom" align="center" width="0.5%" colspan="12"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b>Less Distributions&#8204;<sup>(b)</sup></b></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="center" width="3.6%" colspan="2"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="center" width="3.6%" colspan="2"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="center" width="0.5%" colspan="9"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b> Common Share </b></font></p> </td>
<td valign="bottom" align="center" width="0.5%" colspan="18"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b> Ratios/Supplemental Data </b></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="center" width="3.9%" colspan="2"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td> </tr>
<tr>
<td valign="bottom" align="left" width="17.2%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="center" width="3.6%" colspan="2"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="center" width="3.6%" colspan="2"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="center" width="3.6%" colspan="2"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="center" width="3.6%" colspan="2"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="center" width="3.6%" colspan="2"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="center" width="3.6%" colspan="2"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="center" width="3.6%" colspan="2"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="center" width="3.6%" colspan="2"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="center" width="3.6%" colspan="2"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="center" width="3.6%" colspan="2"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="center" width="3.6%" colspan="2"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="center" width="3.6%" colspan="2"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="center" width="3.6%" colspan="2"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="center" width="4.1%" colspan="2"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="center" width="0.5%" colspan="15"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b>Ratios to Average Net Assets</b></font></p> </td>
<td valign="bottom" align="center" width="0.5%" colspan="3"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td> </tr>
<tr>
<td valign="bottom" align="left" width="17.2%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="center" width="0.5%" colspan="3"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b> Net Asset Value Beginning of Year or Period </b></font></p> </td>
<td valign="bottom" align="center" width="0.5%" colspan="3"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b>Net Investment Income&#8204;<sup>(a)</sup></b></font></p> </td>
<td valign="bottom" align="center" width="0.5%" colspan="3"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b> Net Realized/ Unrealized Gain (Loss) </b></font></p> </td>
<td valign="bottom" align="center" width="0.5%" colspan="3"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b> Total </b></font></p> </td>
<td valign="bottom" align="center" width="0.5%" colspan="3"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b> From Net Investment Income </b></font></p> </td>
<td valign="bottom" align="center" width="0.5%" colspan="3"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b> From Net Realized Capital Gains </b></font></p> </td>
<td valign="bottom" align="center" width="0.5%" colspan="3"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b> Tax Basis Return of Capital </b></font></p> </td>
<td valign="bottom" align="center" width="0.5%" colspan="3"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b> Total </b></font></p> </td>
<td valign="bottom" align="center" width="0.5%" colspan="3"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b> Increase resulting from at-the-mareket offering </b></font></p> </td>
<td valign="bottom" align="center" width="0.5%" colspan="3"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b> Offering Cost Charged to Paid In Capital </b></font></p> </td>
<td valign="bottom" align="center" width="0.5%" colspan="3"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b> Net Asset Value End of Year or Period </b></font></p> </td>
<td valign="bottom" align="center" width="0.5%" colspan="3"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b> Market Price End of Year or Period </b></font></p> </td>
<td valign="bottom" align="center" width="0.5%" colspan="3"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b>Total Investment Return&#8204;<sup>(c)</sup></b></font></p> </td>
<td valign="bottom" align="center" width="0.5%" colspan="3"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b> Net Assets End of Year or Period (000s) </b></font></p> </td>
<td valign="bottom" align="center" width="0.5%" colspan="3"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b>Expenses&#8204;<sup>(d)</sup></b></font></p> </td>
<td valign="bottom" align="center" width="0.5%" colspan="3"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b>Expenses Exclduing Waivers&#8204;<sup>(d)</sup></b></font></p> </td>
<td valign="bottom" align="center" width="0.5%" colspan="3"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b>Expenses Excluding Interest Expenses&#8204;<sup>(d)</sup></b></font></p> </td>
<td valign="bottom" align="center" width="0.5%" colspan="3"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b>Expenses Excluding Interest Expense and Waivers&#8204;<sup>(d)</sup></b></font></p> </td>
<td valign="bottom" align="center" width="0.5%" colspan="3"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b> Net Investment Income (Loss) </b></font></p> </td>
<td valign="bottom" align="center" width="0.5%" colspan="3"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b> Portfolio Turnover Rate </b></font></p> </td> </tr>
<tr style="background-color:#d6f7fa;">
<td valign="bottom" align="left" width="17.2%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b> PIMCO Dynamic Income Fund (Consolidated) </b></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="right" width="2.5999999999999996%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="right" width="2.4%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td> </tr>
<tr>
<td valign="bottom" align="left" width="17.2%"> <p style="padding-left:8;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 06/30/2017 </font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $ </font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">26.56</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $ </font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">2.60</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $ </font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">3.18</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $ </font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">5.78</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $ </font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">(4.10</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">)</font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $ </font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">0.00</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $ </font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">0.00</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $ </font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">(4.10</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">)</font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $ </font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">0.08</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $ </font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">0.00</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">^</font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $ </font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">28.32</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $ </font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">30.18</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">27.07</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">%</font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $ </font></p> </td>
<td valign="bottom" align="right" width="2.5999999999999996%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">1,372,674</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">4.08</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">%</font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">4.08</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">%</font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">2.14</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">%</font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">2.14</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">%</font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">9.58</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">%</font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.4%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">20</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">%</font></p> </td> </tr>
<tr style="background-color:#d6f7fa;">
<td valign="bottom" align="left" width="17.2%"> <p style="padding-left:8;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 06/30/2016 </font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">31.38</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">3.87</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">(3.45</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">)</font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">0.42</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">(4.25</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">)</font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">(0.99</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">)</font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">0.00</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">(5.24</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">)</font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">N/A</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">N/A</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">26.56</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">27.57</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">13.75</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.5999999999999996%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">1,222,499</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">3.60</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">3.60</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">2.12</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">2.12</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">13.67</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.4%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">13</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td> </tr>
<tr>
<td valign="bottom" align="left" width="17.2%"> <p style="padding-left:8;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">04/01/2015 &#8211; 06/30/2015&#8204;<sup>(e)</sup></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">30.74</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">0.80</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">0.47</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">1.27</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">(0.63</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">)</font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">0.00</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">0.00</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">(0.63</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">)&#8204;<sup><br></sup><sup> </sup></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">N/A</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">N/A</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">31.38</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">29.21</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">2.87</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.5999999999999996%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">1,426,891</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">2.83</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">*</font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">2.83</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">*</font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">2.01</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">*</font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">2.01</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">*</font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">10.23</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">*</font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.4%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">5</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td> </tr>
<tr style="background-color:#d6f7fa;">
<td valign="bottom" align="left" width="17.2%"> <p style="padding-left:8;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 03/31/2015 </font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">32.11</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">3.25</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">(0.49</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">)</font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">2.76</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">(4.13</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">)</font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">0.00</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">0.00</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">(4.13</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">)</font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">N/A</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">N/A</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">30.74</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">29.00</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">9.04</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.5999999999999996%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">1,397,987</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">3.12</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">3.12</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">2.12</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">2.12</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">9.98</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.4%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">10</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td> </tr>
<tr>
<td valign="bottom" align="left" width="17.2%"> <p style="padding-left:8;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 03/31/2014 </font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">30.69</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">3.70</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">1.24</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">4.94</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">(3.29</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">)</font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">(0.23</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">)</font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">0.00</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">(3.52</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">)</font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">N/A</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">N/A</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">32.11</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">30.32</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">9.62</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.5999999999999996%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">1,458,961</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">3.15</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">3.15</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">2.17</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">2.17</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">11.90</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.4%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">18</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td> </tr>
<tr style="background-color:#d6f7fa;">
<td valign="bottom" align="left" width="17.2%"> <p style="padding-left:8;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 05/30/2012 &#8211; 03/31/2013 </font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">23.88</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">2.79</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">6.50</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">9.29</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">(2.18</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">)</font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">(0.27</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">)</font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">0.00</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">(2.45</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">)</font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">N/A</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">(0.03</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">)</font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">30.69</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">31.10</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">35.21</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.5999999999999996%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">1,393,099</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">2.91</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">*</font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">2.91</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">*</font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">2.04</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">*</font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">2.04</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">*</font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.1%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">12.04</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">*</font></p> </td>
<td valign="bottom" align="right" width="0.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="right" width="2.4%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">16</font></p> </td>
<td valign="bottom" align="left" width="1.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td> </tr></table> <p style="margin-top:5px;margin-bottom:0px;"><FONT
SIZE="0.5" face="Arial, Helvetica, sans-serif">&#160;</FONT></p>
<table margin="0" cellspacing="0" cellpadding="0" border="0px" width="100%">
<tr>
<td valign="top" align="left" width="2.23%"> <p style="padding:0;margin-top:2;margin-bottom:0;"><font face="Arial, Helvetica, sans-serif" size="1"> * </font></p> </td>
<td valign="top" align="left" width="97.77%"> <p style="padding:0;margin-top:2;margin-bottom:0;"><font face="Arial, Helvetica, sans-serif" size="1"> Annualized </font></p> </td> </tr>
<tr>
<td valign="top" align="left" width="2.23%"> <p style="padding:0;margin-top:2;margin-bottom:0;"><font face="Arial, Helvetica, sans-serif" size="1"> ^ </font></p> </td>
<td valign="top" align="left" width="97.77%"> <p style="padding:0;margin-top:2;margin-bottom:0;"><font face="Arial, Helvetica, sans-serif" size="1"> Reflects an amount rounding to less than one cent. </font></p> </td> </tr>
<tr>
<td valign="top" align="left" width="2.23%"> <p style="padding:0;margin-top:2;margin-bottom:0;"><font face="Arial, Helvetica, sans-serif" size="1"> (a) </font></p> </td>
<td valign="top" align="left" width="97.77%"> <p style="padding:0;margin-top:2;margin-bottom:0;"><font face="Arial, Helvetica, sans-serif" size="1"> Per share amounts based on average number of shares outstanding during the year or period.
</font></p> </td> </tr>
<tr>
<td valign="top" align="left" width="2.23%"> <p style="padding:0;margin-top:2;margin-bottom:0;"><font face="Arial, Helvetica, sans-serif" size="1"> (b) </font></p> </td>
<td valign="top" align="left" width="97.77%"> <p style="padding:0;margin-top:2;margin-bottom:0;"><font face="Arial, Helvetica, sans-serif" size="1">The tax characterization of distributions is determined in accordance with federal income tax
regulations. See Note 2, Distributions&#8212;Common Shares, in the Notes to Financial Statements for more information.</font></p> </td> </tr>
<tr>
<td valign="top" align="left" width="2.23%"> <p style="padding:0;margin-top:2;margin-bottom:0;"><font face="Arial, Helvetica, sans-serif" size="1"> (c) </font></p> </td>
<td valign="top" align="left" width="97.77%"> <p style="padding:0;margin-top:2;margin-bottom:0;"><font face="Arial, Helvetica, sans-serif" size="1"> Total investment return is calculated assuming a purchase of a share at the market price on the
first day and a sale of a share at the market price on the last day of each year reported. Dividends and distributions, if any, are assumed, for purposes of this calculation, to be reinvested at prices obtained under the Funds' dividend reinvestment
plan. Total investment return does not reflect brokerage commissions in connection with the purchase or sale of Fund shares. </font></p> </td> </tr>
<tr>
<td valign="top" align="left" width="2.23%"> <p style="padding:0;margin-top:2;margin-bottom:0;"><font face="Arial, Helvetica, sans-serif" size="1"> (d) </font></p> </td>
<td valign="top" align="left" width="97.77%"> <p style="padding:0;margin-top:2;margin-bottom:0;"><font face="Arial, Helvetica, sans-serif" size="1">Interest expense primarily relates to participation in borrowing and financing transactions. See Note
5, Borrowings and Other Financing Transactions, in the Notes to Financial Statements for more information.</font></p> </td> </tr>
<tr>
<td valign="top" align="left" width="2.23%"> <p style="padding:0;margin-top:2;margin-bottom:0;"><font face="Arial, Helvetica, sans-serif" size="1"> (e) </font></p> </td>
<td valign="top" align="left" width="97.77%"> <p style="padding:0;margin-top:2;margin-bottom:0;"><font face="Arial, Helvetica, sans-serif" size="1"> Fiscal year end changed from March 31st to June 30th. </font></p> </td> </tr></table> <p><font
face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
<table width="100%">
<tr>
<td align="right" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">December 21, 2017 | <b>PROSPECTUS</b></FONT></p> </td>
<td align="right" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">28-29</FONT></p> </td> </tr> </table><hr style="size:3;color:#999999;width:100%;">
<DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;
</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p><a name="chapter_6_4636"></A><a name="chapter_6-sect1_1_4636"></A>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
<tr>
<td align="left" width="29.5%" colspan="3"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
<tr>
<td align="left" width="29.5%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table>
<p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b>Use of Proceeds<br> </b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The net proceeds of an offering will be invested
in accordance with the Fund's investment objectives and policies as set forth below. It is currently anticipated that the Fund will be able to invest substantially all of the net proceeds of an offering in accordance with its investment objectives
and policies within approximately 30 days of receipt by the Fund, depending on the amount and timing of proceeds available to the Fund as well as the availability of investments consistent with the Fund's investment objectives and policies, and
except to the extent proceeds are held in cash to pay dividends or expenses, or for temporary defensive purposes. Pending such investment, it is anticipated that the proceeds of an offering will be invested in high grade, short-term securities,
credit linked trust certificates, and/or high yield securities index future contracts or similar derivative instruments designed to give the Fund exposure to the securities and markets in which it intends to invest while the Investment manager
selects specific investments.</font></p><a name="chapter_7_4636"></A><a name="chapter_7-sect1_1_4636"></A><p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b>The Fund<br> </b></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">The Fund is a diversified, closed-end management investment company. The Fund was organized as a Massachusetts business trust on January 19, 2011, pursuant to an Agreement and Declaration of Trust
governed by the laws of the Commonwealth of Massachusetts. The Fund commenced operations on May 30, 2012, following the initial public offering of its Common
Shares.</font></p><a name="chapter_8_4636"></A><a name="chapter_8-sect1_1_4636"></A><p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b>Investment Objectives and Policies<br> </b></font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2"><i>When used in this prospectus, the term &#8220;invest&#8221; includes both direct investing and indirect investing and the term &#8220;investments&#8221; includes both direct investments and
indirect investments. For example, the Fund may invest indirectly by investing in derivatives or through its wholly-owned and controlled subsidiaries (each, a &#8220;Subsidiary&#8221;). The Fund may be exposed to the different types of investments
described below through its investments in its Subsidiaries. The allocation of the Fund&#8217;s portfolio in a Subsidiary will vary over time and might not always include all of the different types of investments described herein.</i></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">The Fund seeks current income as a primary objective and capital appreciation as a secondary objective. The Fund will seek to achieve its investment objectives by utilizing a dynamic asset allocation
strategy among multiple fixed income sectors in the global credit markets, including corporate debt (including, among other things, fixed-, variable- and floating-rate bonds, bank loans, convertible securities and stressed debt securities issued by
U.S. or foreign (non-U.S.) corporations or other business entities, including emerging market issuers), mortgage-related and other asset-backed securities, government and sovereign debt, taxable municipal bonds and other fixed-, variable- and
floating-rate income-producing securities of U.S. and foreign issuers, including emerging market issuers. The Fund may invest in investment grade debt securities and below investment grade debt securities (commonly referred to as "high yield"
securities or "junk bonds"), including securities of stressed issuers. The types of securities and instruments in which the Fund may invest are summarized under "Portfolio Contents" below. The Fund cannot assure you that it will achieve its
investment objectives, and you could lose all of your investment in the Fund.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund cannot change its investment
objectives without the approval of the holders of a "majority of the outstanding" shares of the Fund. A "majority of the outstanding" shares (whether voting together as a single class or voting as a separate class) means (i) 67% or more of such
shares present at a meeting, if the holders of more than 50% of those shares are present or represented by proxy, or (ii) more than 50% of such shares, whichever is less.</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font
face="Arial, Helvetica, sans-serif" size="3"><b>Portfolio Management Strategies<br> </b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"><i><b>Dynamic Allocation Strategy.</b></i> On behalf of the Fund, the Fund's investment
manager, Pacific Investment Management Company LLC ("PIMCO" or the "Investment Manager"), employs an active approach to allocation among multiple fixed income 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 focuses on seeking the best income generating
investment ideas across multiple fixed income sectors, with an emphasis on seeking opportunities in developed and emerging global credit markets. PIMCO may choose to focus on particular countries/regions (e.g., U.S. vs. foreign), 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 fixed income sectors draws on PIMCO's regional and sector specialist expertise. As
a matter of fundamental policy, the Fund will normally invest at least 25% of its total assets in privately-issued (commonly known as "non-agency") mortgage-related securities. The Fund will observe various investment guidelines as summarized
below.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"><i><b>Investment Selection Strategies.</b></i> Once the Fund's top-down, portfolio positioning decisions have been made as described above, PIMCO selects particular investments
for the Fund by employing a bottom-up, disciplined credit approach which is driven by fundamental, independent research within each sector/asset class represented in the Fund, with a focus on identifying securities and other instruments with solid
and/or improving fundamentals.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">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 current income
and/or opportunities for capital appreciation based on its analysis of the issuer's credit characteristics and the position of the security in the issuer's capital structure.</font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">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.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"><b><i>Credit Quality. </i></b></font><font face="Arial, Helvetica, sans-serif" size="2">The Fund may invest in debt instruments that are, at the </font><font
face="Arial, Helvetica, sans-serif" size="2">time of purchase, rated below investment grade, or unrated but determined </font><font face="Arial, Helvetica, sans-serif" size="2">by PIMCO to be of comparable quality. However, the Fund will not
normally </font><font face="Arial, Helvetica, sans-serif" size="2">invest more than 20% of its total assets in debt instruments, other than </font><font face="Arial, Helvetica, sans-serif" size="2">mortgage-related and other asset-backed securities,
that are, at the time of </font><font face="Arial, Helvetica, sans-serif" size="2">purchase, rated CCC&#43; or lower by S&#38;P and Fitch and Caa1 or lower by </font><font face="Arial, Helvetica, sans-serif" size="2">Moody's, or that are unrated but
determined by PIMCO to be of </font><font face="Arial, Helvetica, sans-serif" size="2">comparable quality to securities so rated. The Fund may invest without limit </font><font face="Arial, Helvetica, sans-serif" size="2">in mortgage-related and
other asset-backed securities regardless of rating </font><font face="Arial, Helvetica, sans-serif" size="2">&#8212;i.e., of any credit quality. For purposes of applying the foregoing policies,
</font><font face="Arial, Helvetica, sans-serif" size="2">in the case of securities with split ratings (i.e., a security receiving two </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
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<td align="right" width="46.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">PIMCO Dynamic Income Fund | <b>PROSPECTUS</b></FONT></p> </td>
<td align="right" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">30</FONT></p> </td> </tr> </table><hr style="size:3;color:#999999;width:100%;">
<DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
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<td align="right" width="29.5%" colspan="3"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
<tr>
<td align="right" width="29.5%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2">different ratings from two different rating
agencies), the Fund will apply the </font><font face="Arial, Helvetica, sans-serif" size="2">higher of the applicable ratings. Subject to the aforementioned investment </font><font face="Arial, Helvetica, sans-serif" size="2">restrictions, the Fund
may invest in securities of stressed issuers, which </font><font face="Arial, Helvetica, sans-serif" size="2">include securities at risk of being in default as to the repayment of principal
</font><font face="Arial, Helvetica, sans-serif" size="2">and/or interest at the time of acquisition by the Fund or that are rated in the </font><font face="Arial, Helvetica, sans-serif" size="2">lower rating categories by one or more nationally
recognized statistical </font><font face="Arial, Helvetica, sans-serif" size="2">rating organizations (for example, Ca or lower by Moody's or CC or lower </font><font face="Arial, Helvetica, sans-serif" size="2">by S&#38;P or Fitch) or, if unrated,
are determined by PIMCO to be of </font><font face="Arial, Helvetica, sans-serif" size="2">comparable quality. Debt instruments of below investment grade quality are </font><font face="Arial, Helvetica, sans-serif" size="2">regarded as having
predominantly speculative characteristics with respect </font><font face="Arial, Helvetica, sans-serif" size="2">to capacity to pay interest and to repay principal, and are commonly </font><font face="Arial, Helvetica, sans-serif" size="2">referred
to as "high yield" securities or "junk bonds." Debt instruments in </font><font face="Arial, Helvetica, sans-serif" size="2">the lowest investment grade category also may be considered to possess </font><font
face="Arial, Helvetica, sans-serif" size="2">some speculative characteristics. The Fund may, for hedging, investment or </font><font face="Arial, Helvetica, sans-serif" size="2">leveraging purposes, make use of credit default swaps, which are
contracts </font><font face="Arial, Helvetica, sans-serif" size="2">whereby one party makes periodic payments to a counterparty in exchange </font><font face="Arial, Helvetica, sans-serif" size="2">for the right to receive from the counterparty a
payment equal to the par (or </font><font face="Arial, Helvetica, sans-serif" size="2">other agreed-upon) value of a referenced debt obligation in the event of a </font><font face="Arial, Helvetica, sans-serif" size="2">default or other credit event
by the issuer of the debt obligation. </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"><i><b>Independent Credit Analysis.</b></i> 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 minimize credit risk and to identify issuers, industries or
sectors that are undervalued or that offer attractive yields relative to PIMCO's assessment of their credit characteristics. This aspect of PIMCO's capabilities will be particularly important to the extent that the Fund invests in high yield
securities and in securities of emerging market issuers.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"><i><b>Duration Management.</b></i> It is expected that the Fund normally will have a short to intermediate average portfolio
duration (i.e., within a zero to eight year (0 to 8) range), as calculated by PIMCO, although it may be shorter or longer at any time or from time to time depending on market conditions and other factors. While the Fund seeks to maintain a short to
intermediate average portfolio duration, there is no limit on the maturity or duration of any individual security in which the Fund may invest. PIMCO believes that maintaining duration within this range offers flexibility and the opportunity for
above-average returns while potentially limiting exposure to interest rate volatility and related risk. Duration is a measure used to determine the sensitivity of a security's price to change in interest rates. The Fund's duration strategy may
entail maintaining a negative average portfolio duration from time to time, which 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 utilize certain strategies, including without limit investments in structured notes or interest rate futures contracts or swap, cap, floor or collar transactions, for the purpose of reducing
the interest rate sensitivity of the Fund's portfolio, although there is no assurance that it will do so or that such strategies will be
successful.</font></p><a name="chapter_9_4636"></A><a name="chapter_9-sect1_1_4636"></A><p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b>Portfolio Contents<br> </b></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">The Fund normally invests worldwide in a portfolio of debt obligations and other income-producing securities of any type and credit quality, with varying maturities and related derivative instruments. The
Fund's portfolio of debt obligations and income-producing securities may include, without limitation, bonds, debentures, notes, and other debt securities of U.S. and foreign (non-U.S.) corporate and other issuers, including commercial paper;
mortgage-related and other asset-backed securities issued by governmental agencies or other governmental entities or by private originators or issuers; U.S. Government securities; obligations of foreign governments or their sub-divisions, agencies
and government sponsored enterprises and obligations of international agencies and supranational entities; 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 (such as Build America Bonds); payment-in-kind securities; zero-coupon bonds; inflation-indexed bonds issued by both governments and corporations; structured notes, including
hybrid or indexed securities; catastrophe bonds and other event-linked bonds; credit-linked notes; structured credit products; bank loans (including, among others, senior loans, delayed funding loans, revolving credit facilities and loan
participations and assignments); 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 two principal characteristics of a traditional convertible security, such as an income-producing security and the right to acquire an equity
security) and contingent convertible securities; and bank certificates of deposit, fixed time deposits and bankers' acceptances. The rate of interest on an income-producing security may be fixed, floating or variable. Certain corporate
income-producing securities, such as convertible bonds, also may include the right to participate in equity appreciation, and PIMCO will generally evaluate those instruments based primarily on their debt characteristics. Subject to the investment
limitations described under "Credit Quality" above, at any given time and from time to time, substantially all of the Fund's portfolio may consist of below investment grade securities and/or mortgage-related or other types of asset backed
securities. The Fund may invest in any level of the capital structure of an issuer of mortgage-backed or asset-backed securities, including the equity or "first loss" tranche.</font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund may invest without limit in securities of U.S. issuers and without limit in securities of foreign (non- U.S.) issuers,
securities traded principally outside of the United States, and securities denominated in currencies other than the U.S. dollar. The Fund may invest without limit in short-term investment grade sovereign debt, including short-term investment grade
sovereign debt issued by emerging market issuers. The Fund may invest up to 40% of its total assets in securities and instruments that are economically tied to "emerging market" countries, other than investments in short-term investment grade
sovereign debt issued by emerging market issuers, where as noted above there is no limit. The Fund may also invest directly in foreign currencies, including local emerging market currencies.</font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund may normally invest up to 40% of its total assets in bank loans
</font><font face="Arial, Helvetica, sans-serif" size="2">(including, among others, senior loans, delayed funding loans, revolving </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
<table width="100%">
<tr>
<td align="right" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">December 21, 2017 | <b>PROSPECTUS</b></FONT></p> </td>
<td align="right" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">31</FONT></p> </td> </tr> </table><hr style="size:3;color:#999999;width:100%;">
<DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p>
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<tr>
<td align="left" width="29.5%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2">credit facilities and loan participations and
assignments). The Fund will not </font><font face="Arial, Helvetica, sans-serif" size="2">normally invest more than 10% of its total assets in convertible debt </font><font face="Arial, Helvetica, sans-serif" size="2">securities (i.e., debt
securities that may be converted at either a stated price </font><font face="Arial, Helvetica, sans-serif" size="2">or stated rate into underlying shares of common stock), including synthetic
</font><font face="Arial, Helvetica, sans-serif" size="2">convertible debt securities (i.e., instruments created through a combination </font><font face="Arial, Helvetica, sans-serif" size="2">of separate securities that possess the two principal
characteristics of a </font><font face="Arial, Helvetica, sans-serif" size="2">traditional convertible security, i.e., an income-producing security and the </font><font face="Arial, Helvetica, sans-serif" size="2">right to acquire an equity
security). The Fund may also invest in preferred </font><font face="Arial, Helvetica, sans-serif" size="2">securities. </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">As a matter of fundamental policy, the Fund will normally invest
at least 25% of its total assets in privately-issued (commonly known as "non-agency") mortgage-related securities.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">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.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">The Fund will not normally invest directly in common stocks of operating companies. However, the Fund may own and hold common stocks of operating companies in its portfolio from time to time in connection
with a corporate action or the restructuring of a debt instrument, or through the conversion of a convertible security held by the Fund.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">The Fund may invest in securities that have not been registered for public sale in the U.S. or relevant non-U.S. jurisdictions, including without limit securities eligible for purchase and sale pursuant
to Rule 144A under the 1933 Act, or relevant provisions of applicable non-U.S. law, and other securities issued in private placements. The Fund may also invest in securities of other investment companies, including, without limit, exchange-traded
funds ("ETFs"), and may invest in foreign ETFs. The Fund may invest in real estate investment trusts ("REITs"). The Fund may invest in securities of companies with any market capitalization, including small and medium capitalizations.</font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund may invest without limit in illiquid securities (i.e., securities that cannot be disposed of within seven days in the ordinary
course of business at approximately the value at which the Fund has valued the securities).</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund may make investments in debt instruments and other securities or instruments
directly or through one or more wholly-owned and controlled Subsidiaries. Each Subsidiary may invest, for example, in whole loans or in 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&#8217;s investment exposure.
The allocation of the Fund&#8217;s portfolio in a Subsidiary will vary over time and might not always include all of the different types of investments described herein.</font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2"><b><i>Temporary defensive investments.</i></b> Upon PIMCO's recommendation, for temporary defensive purposes or in order to keep its cash fully invested, including during the period in which the
net proceeds of this offering are being invested, the Fund may deviate from its investment strategy by investing some or all of its total assets in investments such as high grade debt securities, including high quality, short-term debt securities,
and cash and cash equivalents. The Fund may not achieve its investment objectives when it does so.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The following
provides additional information regarding the types of </font><font face="Arial, Helvetica, sans-serif" size="2">securities and other instruments in which the Fund will ordinarily invest. A
</font><font face="Arial, Helvetica, sans-serif" size="2">more detailed discussion of these and other instruments and investment </font><font face="Arial, Helvetica, sans-serif" size="2">techniques that may be used by the Fund is provided under
"Investment </font><font face="Arial, Helvetica, sans-serif" size="2">Objectives and Policies" in the Statement of Additional Information. </font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font
face="Arial, Helvetica, sans-serif" size="3"><b><b>High Yield Securities<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund may invest without limit in debt instruments that are, at the time of purchase, rated
below investment grade (below Baa3 by Moody's or below BBB- by either S&#38;P or Fitch) or unrated but determined by PIMCO to be of comparable quality. However, the Fund will not normally invest more than 20% of its total assets in debt instruments,
other than mortgage-related and other asset-backed securities, that are, at the time of purchase, rated CCC+ or lower by S&#38;P and Fitch and Caa1 or lower by Moody's or that are unrated but determined by PIMCO to be of comparable quality to
securities so rated. The Fund may invest in mortgage-related and other asset-backed securities regardless of rating (i.e., of any credit quality). For purposes of applying the foregoing policies, in the case of securities with split ratings (i.e., a
security receiving two different ratings from two different rating agencies), the Fund will apply the higher of the applicable ratings. The Fund may invest in debt securities of stressed or distressed issuers, which include securities at risk of
being in default as to the repayment of principal and/or interest at the time of acquisition by the Fund or that are rated in the lower rating categories by one or more nationally recognized statistical rating organizations (for example, Ca or lower
by Moody's or CC or lower by S&#38;P or Fitch) or, if unrated, are determined by PIMCO to be of comparable quality. The Fund may invest in defaulted securities and debtor-in-possession financings. Below investment grade securities are commonly
referred to as "high yield" securities or "junk bonds." High yield securities involve a greater degree of risk (in particular, a greater risk of default) than, and special risks in addition to the risks associated with, investment grade debt
obligations.While offering a greater potential opportunity for capital appreciation and higher yields, high yield securities typically entail greater potential price volatility and may be less liquid than higher-rated securities. High yield
securities may be regarded as predominantly speculative with respect to the issuer's continuing ability to make timely principal and interest payments. They also may be more susceptible to real or perceived adverse economic and competitive industry
conditions than higher-rated securities. Debt securities in the lowest investment grade category also may be considered to possess some speculative characteristics by certain ratings agencies.</font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The market values of high yield securities tend to reflect individual developments of the issuer to a greater extent than do
higher-quality securities, which tend to react mainly to fluctuations in the general level of interest rates. In addition, lower-quality debt securities tend to be more sensitive to general economic conditions. Certain emerging market governments
that issue high yield securities in which the Fund may invest are among the largest debtors to commercial banks, foreign governments and supranational organizations, such as the World Bank, and may not be able or willing to make principal and/or
interest payments as they come due.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"><b><i>Credit ratings and unrated securities. </i></b></font><font
face="Arial, Helvetica, sans-serif" size="2">Rating agencies are private </font><font face="Arial, Helvetica, sans-serif" size="2">services that provide ratings of the credit quality of debt obligations. </font><font
face="Arial, Helvetica, sans-serif" size="2">Appendix A to this prospectus describes the various ratings assigned to </font><font face="Arial, Helvetica, sans-serif" size="2">debt obligations by Moody's, S&#38;P and Fitch. As noted in Appendix A,
</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
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<img src="g450385pr4636img005.jpg"><br></FONT></p> </td>
<td align="right" width="46.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">PIMCO Dynamic Income Fund | <b>PROSPECTUS</b></FONT></p> </td>
<td align="right" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">32</FONT></p> </td> </tr> </table><hr style="size:3;color:#999999;width:100%;">
<DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
<tr>
<td align="right" width="29.5%" colspan="3"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
<tr>
<td align="right" width="29.5%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2">Moody's, S&#38;P and Fitch may modify their
ratings of securities to show </font><font face="Arial, Helvetica, sans-serif" size="2">relative standing within a rating category, with the addition of numerical </font><font face="Arial, Helvetica, sans-serif" size="2">modifiers (1, 2 or 3) in the
case of Moody's, and with the addition of a plus </font><font face="Arial, Helvetica, sans-serif" size="2">(&#43;) or minus (-) sign in the case of S&#38;P and Fitch. Ratings assigned by a
</font><font face="Arial, Helvetica, sans-serif" size="2">rating agency are not absolute standards of credit quality and do not </font><font face="Arial, Helvetica, sans-serif" size="2">evaluate market risks. Rating agencies may fail to make timely
changes in </font><font face="Arial, Helvetica, sans-serif" size="2">credit ratings and an issuer's current financial condition may be better or </font><font face="Arial, Helvetica, sans-serif" size="2">worse than a rating indicates. The Fund will
not necessarily sell a security </font><font face="Arial, Helvetica, sans-serif" size="2">when its rating is reduced below its rating at the time of purchase. PIMCO </font><font face="Arial, Helvetica, sans-serif" size="2">does not rely solely on
credit ratings, and develops its own analysis of issuer </font><font face="Arial, Helvetica, sans-serif" size="2">credit quality. The ratings of a debt security may change over time. Moody's,
</font><font face="Arial, Helvetica, sans-serif" size="2">S&#38;P and Fitch monitor and evaluate the ratings assigned to securities on an </font><font face="Arial, Helvetica, sans-serif" size="2">ongoing basis. As a result, debt instruments held by
the Fund could receive </font><font face="Arial, Helvetica, sans-serif" size="2">a higher rating (which would tend to increase their value) or a lower rating </font><font face="Arial, Helvetica, sans-serif" size="2">(which would tend to decrease
their value) during the period in which they </font><font face="Arial, Helvetica, sans-serif" size="2">are held by the Fund. </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund may purchase unrated securities (which are not
rated by a rating agency) if PIMCO determines that the security is of comparable quality to a rated security that the Fund may purchase. Unrated securities may be less liquid than comparable rated securities and involve the risk that PIMCO may not
accurately evaluate the security's comparative credit rating. Analysis of the creditworthiness of issuers of high yield securities may be more complex than for issuers of higher-quality debt obligations. The Fund's success in achieving its
investment objectives may depend more heavily on PIMCO's credit analysis to the extent that the Fund invests in below investment grade quality and unrated securities.</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font
face="Arial, Helvetica, sans-serif" size="3"><b><b>Foreign (Non-U.S.) Investments<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund may invest without limit in instruments of corporate and other foreign
(non-U.S.) issuers, and in instruments traded principally outside of the United States. The Fund may invest in sovereign and other debt securities issued by foreign governments and their respective sub-divisions, agencies or instrumentalities,
government sponsored enterprises and supranational government entities. Supranational entities include international organizations that are organized or supported by one or more government entities to promote economic reconstruction or development
and by international banking institutions and related governmental agencies. As a holder of such debt securities, the Fund may be requested to participate in the rescheduling of such debt and to extend further loans to governmental entities. In
addition, there are generally no bankruptcy proceedings similar to those in the United States by which defaulted foreign debt securities may be collected. Investing in foreign securities involves special risks and considerations not typically
associated with investing in U.S. securities. See "Principal Risks of the Fund&#8212;Foreign (Non-U.S.) Investment Risk."</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">PIMCO generally considers an instrument to be economically tied to a non-</font><font face="Arial, Helvetica, sans-serif" size="2">U.S. country if the issuer is a foreign (non-U.S.) government (or any
political </font><font face="Arial, Helvetica, sans-serif" size="2">subdivision, agency, authority or instrumentality of such government), or if </font><font face="Arial, Helvetica, sans-serif" size="2">the issuer is organized under the laws of a
non-U.S. country. In the case of </font><font face="Arial, Helvetica, sans-serif" size="2">certain money market instruments, such instruments will be considered </font><font face="Arial, Helvetica, sans-serif" size="2">economically tied to a
non-U.S. country if either the issuer or the guarantor </font><font face="Arial, Helvetica, sans-serif" size="2">of such money market instrument is organized under the laws of a non-U.S.
</font><font face="Arial, Helvetica, sans-serif" size="2">country. With respect to derivative instruments, PIMCO generally considers </font><font face="Arial, Helvetica, sans-serif" size="2">such instruments to be economically tied to non-U.S.
countries if the </font><font face="Arial, Helvetica, sans-serif" size="2">underlying assets are foreign currencies (or baskets or indexes of such </font><font face="Arial, Helvetica, sans-serif" size="2">currencies), or instruments or securities
that are issued by foreign </font><font face="Arial, Helvetica, sans-serif" size="2">governments or issuers organized under the laws of a non-U.S. country (or </font><font face="Arial, Helvetica, sans-serif" size="2">if the underlying assets are
certain money market instruments, if either the </font><font face="Arial, Helvetica, sans-serif" size="2">issuer or the guarantor of such money market instruments is organized </font><font face="Arial, Helvetica, sans-serif" size="2">under the laws
of a non-U.S. country). </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund may invest in Brady Bonds, which are securities created through the exchange of
existing commercial bank loans to sovereign entities for new obligations in connection with a debt restructuring. Investments in Brady Bonds may be viewed as speculative. Brady Bonds acquired by the Fund may be subject to restructuring arrangements
or to requests for new credit, which may cause the Fund to realize a loss of interest or principal on any of its portfolio holdings.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">The foreign securities in which the Fund may invest include without limitation Eurodollar obligations and "Yankee Dollar" obligations. Eurodollar obligations are U.S. dollar-denominated certificates of
deposit and time deposits issued outside the U.S. capital markets by foreign branches of U.S. banks and by foreign banks. Yankee Dollar obligations are U.S. dollar-denominated obligations issued in the U.S. capital markets by foreign banks.
Eurodollar and Yankee Dollar obligations are generally subject to the same risks that apply to domestic debt issues, notably credit risk, interest rate risk, market risk and liquidity risk. Additionally, Eurodollar (and to a limited extent, Yankee
Dollar) obligations are subject to certain sovereign risks. One such risk is the possibility that a sovereign country might prevent capital, in the form of U.S. dollars, from flowing across its borders. Other risks include adverse political and
economic developments; the extent and quality of government regulation of financial markets and institutions; the imposition of foreign withholding or other taxes; and the expropriation or nationalization of foreign issuers.</font></p>
<p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Emerging Markets Investments<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund may invest without
limit in short-term investment grade sovereign </font><font face="Arial, Helvetica, sans-serif" size="2">debt, including short-term investment grade sovereign debt issued by </font><font face="Arial, Helvetica, sans-serif" size="2">emerging market
issuers. The Fund may invest up to 40% of its total assets </font><font face="Arial, Helvetica, sans-serif" size="2">in securities and instruments that are economically tied to "emerging
</font><font face="Arial, Helvetica, sans-serif" size="2">market" countries, other than investments in short-term investment grade </font><font face="Arial, Helvetica, sans-serif" size="2">sovereign debt issued by emerging market issuers, where as
noted above </font><font face="Arial, Helvetica, sans-serif" size="2">there is no limit. PIMCO generally considers an instrument to be </font><font face="Arial, Helvetica, sans-serif" size="2">economically tied to an emerging market country if the
security's "country </font><font face="Arial, Helvetica, sans-serif" size="2">of exposure" is an emerging market country, as determined by the criteria </font><font face="Arial, Helvetica, sans-serif" size="2">set forth below. Alternatively, such as
when a "country of exposure" is not </font><font face="Arial, Helvetica, sans-serif" size="2">available or when PIMCO believes the following tests more accurately </font><font face="Arial, Helvetica, sans-serif" size="2">reflect which country the
security is economically tied to, PIMCO may </font><font face="Arial, Helvetica, sans-serif" size="2">consider an instrument to be economically tied to an emerging market </font><font face="Arial, Helvetica, sans-serif" size="2">country if the
issuer or guarantor is a government of an emerging market </font><font face="Arial, Helvetica, sans-serif" size="2">country (or any political subdivision, agency, authority or instrumentality of </font><font
face="Arial, Helvetica, sans-serif" size="2">such government), if the issuer or guarantor is organized under the laws of </font><font face="Arial, Helvetica, sans-serif" size="2">an emerging market country, or if the currency of settlement of the
security </font><font face="Arial, Helvetica, sans-serif" size="2">is a currency of an emerging market country. With respect to derivative </font><font face="Arial, Helvetica, sans-serif" size="2">instruments, PIMCO generally considers such
instruments to be </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
<table width="100%">
<tr>
<td align="right" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">December 21, 2017 | <b>PROSPECTUS</b></FONT></p> </td>
<td align="right" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">33</FONT></p> </td> </tr> </table><hr style="size:3;color:#999999;width:100%;">
<DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
<tr>
<td align="left" width="29.5%" colspan="3"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
<tr>
<td align="left" width="29.5%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2">economically tied to emerging market countries if
the underlying assets are </font><font face="Arial, Helvetica, sans-serif" size="2">currencies of emerging market countries (or baskets or indexes of such </font><font face="Arial, Helvetica, sans-serif" size="2">currencies), or instruments or
securities that are issued or guaranteed by </font><font face="Arial, Helvetica, sans-serif" size="2">governments of emerging market countries or by entities organized under </font><font face="Arial, Helvetica, sans-serif" size="2">the laws of
emerging market countries. A security's "country of exposure" is </font><font face="Arial, Helvetica, sans-serif" size="2">determined by PIMCO using certain factors provided by a third-party
</font><font face="Arial, Helvetica, sans-serif" size="2">analytical service provider. The factors are applied in order such that the first </font><font face="Arial, Helvetica, sans-serif" size="2">factor to result in the assignment of a country
determines the "country of </font><font face="Arial, Helvetica, sans-serif" size="2">exposure." The factors, listed in the order in which they are applied, are: (i) if </font><font face="Arial, Helvetica, sans-serif" size="2">an asset-backed or
other collateralized security, the country in which the </font><font face="Arial, Helvetica, sans-serif" size="2">collateral backing the security is located, (ii) if the security is guaranteed by </font><font
face="Arial, Helvetica, sans-serif" size="2">the government of a country (or any political subdivision, agency, authority </font><font face="Arial, Helvetica, sans-serif" size="2">or instrumentality of such government), the country of the government
or </font><font face="Arial, Helvetica, sans-serif" size="2">instrumentality providing the guarantee, (iii) the "country of risk" of the </font><font face="Arial, Helvetica, sans-serif" size="2">issuer, (iv) the "country of risk" of the issuer's
ultimate parent, or (v) the </font><font face="Arial, Helvetica, sans-serif" size="2">country where the issuer is organized or incorporated under the laws </font><font face="Arial, Helvetica, sans-serif" size="2">thereof. "Country of risk" is a
separate four-part test determined by the </font><font face="Arial, Helvetica, sans-serif" size="2">following factors, listed in order of importance: (i) management location, (ii) </font><font face="Arial, Helvetica, sans-serif" size="2">country of
primary listing, (iii) sales or revenue attributable to the country, </font><font face="Arial, Helvetica, sans-serif" size="2">and (iv) reporting currency of the issuer. PIMCO has broad discretion to </font><font
face="Arial, Helvetica, sans-serif" size="2">identify countries that it considers to qualify as emerging markets. Emerging </font><font face="Arial, Helvetica, sans-serif" size="2">market countries are generally located in Asia, Africa, the Middle
East, Latin </font><font face="Arial, Helvetica, sans-serif" size="2">America and Eastern Europe but may be in other regions as well. PIMCO </font><font face="Arial, Helvetica, sans-serif" size="2">will consider emerging market country and currency
composition based on </font><font face="Arial, Helvetica, sans-serif" size="2">its evaluation of relative interest rates, inflation rates, exchange rates, </font><font face="Arial, Helvetica, sans-serif" size="2">monetary and fiscal policies, trade
and current account balances, legal and </font><font face="Arial, Helvetica, sans-serif" size="2">political developments and any other specific factors it believes to be </font><font face="Arial, Helvetica, sans-serif" size="2">relevant. </font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2">The securities and currency markets of emerging market countries are generally smaller, less developed, less liquid, and more volatile than the securities and currency markets of the United
States and other developed markets and disclosure and regulatory standards in many respects are less stringent. There also may be a lower level of monitoring and regulation of securities markets in emerging market countries and the activities of
investors in such markets and enforcement of existing regulations may be extremely limited. Government enforcement of existing securities regulations is limited, and any enforcement may be arbitrary and the results may be difficult to predict. In
addition, reporting requirements of emerging market countries with respect to the ownership of securities are more likely to be subject to interpretation or changes without prior notice to investors than more developed countries.</font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">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 such countries' economies and securities markets.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">Economies of emerging market countries generally are heavily dependent </font><font face="Arial, Helvetica, sans-serif" size="2">upon international trade and, accordingly, have been and may continue to
</font><font face="Arial, Helvetica, sans-serif" size="2">be affected adversely by trade barriers, exchange controls, managed </font><font face="Arial, Helvetica, sans-serif" size="2">adjustments in relative currency values, and other protectionist
measures </font><font face="Arial, Helvetica, sans-serif" size="2">imposed or negotiated by the countries with which they trade. The </font><font face="Arial, Helvetica, sans-serif" size="2">economies of emerging market countries also have been and
may continue </font><font face="Arial, Helvetica, sans-serif" size="2">to be adversely affected by economic conditions in the countries with which </font><font face="Arial, Helvetica, sans-serif" size="2">they trade. The economies of emerging market
countries may also be </font><font face="Arial, Helvetica, sans-serif" size="2">predominantly based on only a few industries or dependent on revenues </font><font face="Arial, Helvetica, sans-serif" size="2">from particular commodities. In addition,
custodial services and other </font><font face="Arial, Helvetica, sans-serif" size="2">investment-related costs may be more expensive in emerging markets than </font><font face="Arial, Helvetica, sans-serif" size="2">in many developed markets, which
could reduce the Fund's income from </font><font face="Arial, Helvetica, sans-serif" size="2">securities or debt instruments of emerging market country issuers. </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">Governments of many emerging market countries have exercised and continue to exercise substantial influence over many aspects of the private sector. In some cases, the government owns or controls many
companies, including some of the largest in the country. Accordingly, government actions could have a significant effect on economic conditions in an emerging country and on market conditions, prices and yields of securities in the Fund's
portfolio.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Emerging market countries are more likely than developed market countries to experience political
uncertainty and instability, including the risk of war, terrorism, nationalization, limitations on the removal of funds or other assets, or diplomatic developments that affect investments in these countries. No assurance can be given that adverse
political changes will not cause the Fund to suffer a loss of any or all of its investments in emerging market countries or interest/dividend income thereon.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">Foreign investment in certain emerging market country securities is restricted or controlled to varying degrees. These restrictions or controls may at times limit or preclude foreign investment in certain
emerging market country securities and increase the costs and expenses of the Fund. Certain emerging market countries require governmental approval prior to investments by foreign persons, limit the amount of investment by foreign persons in a
particular issuer, limit the investment by foreign persons only to a specific class of securities of an issuer that may have less advantageous rights than the classes available for purchase by domiciliaries of the countries and/or impose additional
taxes on foreign investors. Certain emerging market countries may also restrict investment opportunities in issuers in industries deemed important to national interests. Emerging market countries may require governmental approval for the
repatriation of investment income, capital or the proceeds of sales of securities by foreign investors.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Also, because
publicly traded debt instruments of emerging market issuers represent a relatively recent innovation in the world debt markets, there is little historical data or related market experience concerning the attributes of such instruments under all
economic, market and political conditions.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">As reflected in the above discussion, investments in emerging market
securities involve a greater degree of risk than, and special risks in addition to the risks associated with, investments in domestic securities or in securities of foreign developed countries. See "Principal Risks of the Fund&#8212;Emerging Markets
Risk."</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Foreign Currencies and Related Transactions<br> </b></b></font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2">The Fund's Common Shares are priced in U.S. dollars and the distributions </font><font face="Arial, Helvetica, sans-serif" size="2">paid by the Fund to Common Shareholders are paid in U.S.
dollars. </font><font face="Arial, Helvetica, sans-serif" size="2">However, a significant portion of the Fund's assets may be denominated in </font><font face="Arial, Helvetica, sans-serif" size="2">foreign (non-U.S.) currencies and the income
received by the Fund from </font><font face="Arial, Helvetica, sans-serif" size="2">many foreign debt obligations will be paid in foreign currencies. The Fund </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
<table width="100%">
<tr>
<td align="left" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">34 &#160;&#160;&#160;&#160; </FONT></p> </td>
<td align="left" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><b>PROSPECTUS</b> | PIMCO Dynamic Income Fund &#160;&#160;&#160;&#160; </FONT></p> </td> </tr>
</table><hr style="size:3;color:#999999;width:100%;"> <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;
</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
<tr>
<td align="right" width="29.5%" colspan="3"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
<tr>
<td align="right" width="29.5%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2">also may invest in or gain exposure to foreign
currencies themselves for </font><font face="Arial, Helvetica, sans-serif" size="2">investment or hedging purposes. The Fund's investments in securities that </font><font face="Arial, Helvetica, sans-serif" size="2">trade in, or receive revenues in,
foreign currencies will be subject to currency </font><font face="Arial, Helvetica, sans-serif" size="2">risk, which is the risk that fluctuations in the exchange rates between the </font><font face="Arial, Helvetica, sans-serif" size="2">U.S.
dollar and foreign currencies may negatively affect an investment. See </font><font face="Arial, Helvetica, sans-serif" size="2">"Principal Risks of the Fund&#8212;Currency Risk." The Fund may (but is not </font><font
face="Arial, Helvetica, sans-serif" size="2">required to) hedge some or all of its exposure to foreign currencies through </font><font face="Arial, Helvetica, sans-serif" size="2">the use of derivative strategies. For instance, the Fund may enter
into </font><font face="Arial, Helvetica, sans-serif" size="2">forward foreign currency exchange contracts, and may buy and sell foreign </font><font face="Arial, Helvetica, sans-serif" size="2">currency futures contracts and options on foreign
currencies and foreign </font><font face="Arial, Helvetica, sans-serif" size="2">currency futures. A forward foreign currency exchange contract, which </font><font face="Arial, Helvetica, sans-serif" size="2">involves an obligation to purchase or
sell a specific currency at a future date </font><font face="Arial, Helvetica, sans-serif" size="2">at a price set at the time of the contract, may reduce the Fund's exposure to </font><font face="Arial, Helvetica, sans-serif" size="2">changes in
the value of the currency it will deliver and increase its exposure </font><font face="Arial, Helvetica, sans-serif" size="2">to changes in the value of the currency it will receive for the duration of the </font><font
face="Arial, Helvetica, sans-serif" size="2">contract. The effect on the value of the Fund is similar to selling securities </font><font face="Arial, Helvetica, sans-serif" size="2">denominated in one currency and purchasing securities denominated
in </font><font face="Arial, Helvetica, sans-serif" size="2">another currency. Foreign currency transactions, like currency exchange </font><font face="Arial, Helvetica, sans-serif" size="2">rates, can be affected unpredictably by intervention (or
the failure to </font><font face="Arial, Helvetica, sans-serif" size="2">intervene) by U.S. or foreign governments or central banks, or by currency </font><font face="Arial, Helvetica, sans-serif" size="2">controls or political developments. Such
events may prevent or restrict the </font><font face="Arial, Helvetica, sans-serif" size="2">Fund's ability to enter into foreign currency transactions, force the Fund to </font><font face="Arial, Helvetica, sans-serif" size="2">exit a foreign
currency transaction at a disadvantageous time or price or </font><font face="Arial, Helvetica, sans-serif" size="2">result in penalties for the Fund, any of which may result in a loss to the
</font><font face="Arial, Helvetica, sans-serif" size="2">Fund. </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Contracts to sell foreign currency would limit any potential gain that might be realized by the Fund if the value of
the hedged currency increases. The Fund may enter into these contracts to hedge against foreign exchange risk arising from the Fund's investment or anticipated investment in securities denominated in foreign currencies. Suitable hedging transactions
may not be available in all circumstances and there can be no assurance that the Fund will engage in such transactions at any given time or from time to time when they would be beneficial. Although PIMCO has the flexibility to engage in such
transactions for the Fund, it may determine not to do so or to do so only in unusual circumstances or market conditions. Also, these transactions may not be successful and may eliminate any chance for the Fund to benefit from favorable fluctuations
in relevant foreign currencies.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund may also use derivatives contracts for purposes of increasing exposure to a
foreign currency or to shift exposure to foreign currency fluctuations from one currency to another. To the extent that it does so, the Fund will be subject to the additional risk that the relative value of currencies will be different than
anticipated by PIMCO.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Please see "Investment Objectives and Policies&#8212;Non-U.S. Securities," "Investment
Objectives and Policies&#8212; Foreign Currency Transactions" and "Investment Objectives and Policies&#8212;Foreign Currency Exchange-Related Securities" in the Statement of Additional Information for a more detailed description of the types of
foreign investments and foreign currency transactions in which the Fund may invest or engage and their related risks.</font></p>
<p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Mortgage-Related and Other Asset-Backed Securities<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund
may invest in a variety of mortgage-related and other asset-backed securities issued by government agencies or other governmental entities or by private originators or issuers.</font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">As a matter of fundamental policy, the Fund will normally invest at least 25% of its total assets (i.e., concentrate) in
privately-issued (commonly known as "non-agency") mortgage-related securities.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Mortgage-related securities include
mortgage pass-through securities, CMOs, commercial mortgage-backed securities ("CMBSs"), mortgage dollar rolls, CMO residuals, adjustable rate mortgage-backed securities ("ARMs"), SMBSs and other securities that directly or indirectly represent a
participation in, or are secured by and payable from, mortgage loans on real property.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"><i><b>Mortgage Pass-Through
Securities.</b></i> Interests in pools of mortgage-related securities differ from other forms of debt securities, which normally provide for periodic payment of interest in fixed amounts with principal payments at maturity or specified call dates.
Instead, these securities provide a monthly payment which consists of both interest and principal payments. In effect, these payments are a "pass through" of the monthly payments made by the individual borrowers on their residential or commercial
mortgage loans, net of any fees paid to the issuer or guarantor of such securities. Additional payments are caused by repayments of principal resulting from the sale of the underlying property, refinancing or foreclosure, net of fees or costs that
may be incurred. Some mortgage-related securities (such as securities issued by GNMA) are described as "modified pass-through." These securities entitle the holder to receive all interest and principal payments owed on the mortgage pool, net of
certain fees, at the scheduled payment dates regardless of whether or not the mortgagor actually makes the payment.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2">The rate of pre-payments on underlying mortgages will affect the price and </font><font face="Arial, Helvetica, sans-serif" size="2">volatility of a mortgage-related security, and may have the
effect of </font><font face="Arial, Helvetica, sans-serif" size="2">shortening or extending the effective duration of the security relative to </font><font face="Arial, Helvetica, sans-serif" size="2">what was anticipated at the time of purchase. To
the extent that </font><font face="Arial, Helvetica, sans-serif" size="2">unanticipated rates of prepayment on underlying mortgages increase the </font><font face="Arial, Helvetica, sans-serif" size="2">effective duration of a mortgage-related
security, the volatility of such </font><font face="Arial, Helvetica, sans-serif" size="2">security can be expected to increase. The mortgage market in the United </font><font face="Arial, Helvetica, sans-serif" size="2">States has experienced
heightened difficulties over the past several years </font><font face="Arial, Helvetica, sans-serif" size="2">that may adversely affect the performance and market value of mortgage-</font><font face="Arial, Helvetica, sans-serif" size="2">related
investments. Delinquencies and losses on residential and </font><font face="Arial, Helvetica, sans-serif" size="2">commercial mortgage loans (especially subprime and second-lien residential
</font><font face="Arial, Helvetica, sans-serif" size="2">mortgage loans) generally have increased recently and may continue to </font><font face="Arial, Helvetica, sans-serif" size="2">increase, and a decline in or flattening of property values (as
has recently </font><font face="Arial, Helvetica, sans-serif" size="2">been experienced and may continue to be experienced in many markets) </font><font face="Arial, Helvetica, sans-serif" size="2">may exacerbate such delinquencies and losses.
Borrowers with adjustable-</font><font face="Arial, Helvetica, sans-serif" size="2">rate mortgage loans are more sensitive to changes in interest rates, which </font><font face="Arial, Helvetica, sans-serif" size="2">affect their monthly mortgage
payments, and may be unable to secure </font><font face="Arial, Helvetica, sans-serif" size="2">replacement mortgages at comparably low interest rates. Also, a number of </font><font face="Arial, Helvetica, sans-serif" size="2">residential mortgage
loan originators have recently experienced serious </font><font face="Arial, Helvetica, sans-serif" size="2">financial difficulties or bankruptcy. Owing largely to the foregoing, reduced
</font><font face="Arial, Helvetica, sans-serif" size="2">investor demand for mortgage loans and mortgage-related securities and </font><font face="Arial, Helvetica, sans-serif" size="2">increased investor yield requirements have caused limited
liquidity in the </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
<table width="100%">
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<td align="right" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">December 21, 2017 | <b>PROSPECTUS</b></FONT></p> </td>
<td align="right" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">35</FONT></p> </td> </tr> </table><hr style="size:3;color:#999999;width:100%;">
<DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
<tr>
<td align="left" width="29.5%" colspan="3"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
<tr>
<td align="left" width="29.5%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2">secondary market for mortgage-related securities,
which can adversely </font><font face="Arial, Helvetica, sans-serif" size="2">affect the market value of mortgage-related securities. It is possible that </font><font face="Arial, Helvetica, sans-serif" size="2">such limited liquidity in such
secondary markets could continue or worsen. </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The principal U.S. governmental guarantor of mortgage-related securities is GNMA. GNMA is a wholly owned U.S. Government corporation within
the Department of Housing and Urban Development. GNMA is authorized to guarantee, with the full faith and credit of the U.S. Government, the timely payment of principal and interest on securities issued by institutions approved by GNMA (such as
savings and loan institutions, commercial banks and mortgage bankers) and backed by pools of mortgages insured by the Federal Housing Administration (the "FHA"), or guaranteed by the Department of Veterans Affairs (the "VA"). Government-related
guarantors (i.e., not backed by the full faith and credit of the U.S. Government) include FNMA and FHLMC. FNMA is a government-sponsored corporation the common stock of which is owned entirely by private stockholders. FNMA purchases conventional
(i.e., not insured or guaranteed by any government agency) residential mortgages from a list of approved seller/servicers which include state and federally chartered savings and loan associations, mutual savings banks, commercial banks and credit
unions and mortgage bankers. Pass-through securities issued by FNMA are guaranteed as to timely payment of principal and interest by FNMA, but are not backed by the full faith and credit of the U.S. Government. FHLMC was created by Congress in 1970
for the purpose of increasing the availability of mortgage credit for residential housing. It is a government-sponsored corporation that issues Participation Certificates ("PCs"), which are pass-through securities, each representing an undivided
interest in a pool of residential mortgages. FHLMC guarantees the timely payment of interest and ultimate collection of principal, but PCs are not backed by the full faith and credit of the U.S. Government.</font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">On September 6, 2008, the Federal Housing Finance Agency ("FHFA") </font><font face="Arial, Helvetica, sans-serif" size="2">placed FNMA
and FHLMC into conservatorship. As the conservator, FHFA </font><font face="Arial, Helvetica, sans-serif" size="2">succeeded to all rights, titles, powers and privileges of FNMA and FHLMC </font><font face="Arial, Helvetica, sans-serif" size="2">and
of any stockholder, officer or director of FNMA and FHLMC with respect </font><font face="Arial, Helvetica, sans-serif" size="2">to FNMA and FHLMC and the assets of FNMA and FHLMC. FHFA selected a </font><font
face="Arial, Helvetica, sans-serif" size="2">new chief executive officer and chairman of the board of directors for each </font><font face="Arial, Helvetica, sans-serif" size="2">of FNMA and FHLMC. In connection with the conservatorship, the U.S.
</font><font face="Arial, Helvetica, sans-serif" size="2">Treasury entered into a Senior Preferred Stock Purchase Agreement with </font><font face="Arial, Helvetica, sans-serif" size="2">each of FNMA and FHLMC pursuant to which the U.S. Treasury
will </font><font face="Arial, Helvetica, sans-serif" size="2">purchase up to an aggregate of $100 billion of each of FNMA and FHLMC </font><font face="Arial, Helvetica, sans-serif" size="2">to maintain a positive net worth in each enterprise. This
agreement contains </font><font face="Arial, Helvetica, sans-serif" size="2">various covenants that severely limit each enterprise's operations. In </font><font face="Arial, Helvetica, sans-serif" size="2">exchange for entering into these
agreements, the U.S. Treasury received $1 </font><font face="Arial, Helvetica, sans-serif" size="2">billion of each enterprise's senior preferred stock and warrants to purchase </font><font face="Arial, Helvetica, sans-serif" size="2">79.9% of each
enterprise's common stock. On February 18, 2009, the U.S. </font><font face="Arial, Helvetica, sans-serif" size="2">Treasury announced that it was doubling the size of its commitment to each
</font><font face="Arial, Helvetica, sans-serif" size="2">enterprise under the Senior Preferred Stock Program to $200 billion. The </font><font face="Arial, Helvetica, sans-serif" size="2">U.S. Treasury's obligations under the Senior Preferred Stock
Program are for </font><font face="Arial, Helvetica, sans-serif" size="2">an indefinite period of time for a maximum amount of $200 billion per </font><font face="Arial, Helvetica, sans-serif" size="2">enterprise. On December 24, 2009, the U.S.
Treasury announced further </font><font face="Arial, Helvetica, sans-serif" size="2">amendments to the Senior Preferred Stock Purchase Agreements which </font><font face="Arial, Helvetica, sans-serif" size="2">included additional financial support
to certain governmentally supported </font><font face="Arial, Helvetica, sans-serif" size="2">entities, including the FHLBs, FNMA and FHLMC. There is no assurance that </font><font face="Arial, Helvetica, sans-serif" size="2">the obligations of such
entities will be satisfied in full, or that such </font><font face="Arial, Helvetica, sans-serif" size="2">obligations will not decrease in value or default. It is difficult, if not
</font><font face="Arial, Helvetica, sans-serif" size="2">impossible, to predict the future political, regulatory or economic changes </font><font face="Arial, Helvetica, sans-serif" size="2">that could impact the FNMA, FHLMC and the FHLBs, and the
values of their </font><font face="Arial, Helvetica, sans-serif" size="2">related securities or obligations. </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">FNMA and
FHLMC are continuing to operate as going concerns while in conservatorship and each remain liable for all of its obligations, including its guaranty obligations, associated with its mortgage-backed securities.</font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">Under the Federal Housing Finance Regulatory Reform Act of 2008 (the </font><font face="Arial, Helvetica, sans-serif" size="2">"Reform Act"), which was included as part of the Housing and Economic </font><font
face="Arial, Helvetica, sans-serif" size="2">Recovery Act of 2008, FHFA, as conservator or receiver, has the power to </font><font face="Arial, Helvetica, sans-serif" size="2">repudiate any contract entered into by FNMA or FHLMC prior to FHFA's
</font><font face="Arial, Helvetica, sans-serif" size="2">appointment as conservator or receiver, as applicable, if FHFA determines, in </font><font face="Arial, Helvetica, sans-serif" size="2">its sole discretion, that performance of the contract
is burdensome and that </font><font face="Arial, Helvetica, sans-serif" size="2">repudiation of the contract promotes the orderly administration of FNMA's </font><font face="Arial, Helvetica, sans-serif" size="2">or FHLMC's affairs. The Reform Act
requires FHFA to exercise its right to </font><font face="Arial, Helvetica, sans-serif" size="2">repudiate any contract within a reasonable period of time after its </font><font face="Arial, Helvetica, sans-serif" size="2">appointment as conservator
or receiver. FHFA, in its capacity as conservator, </font><font face="Arial, Helvetica, sans-serif" size="2">has indicated that it has no intention to repudiate the guaranty obligations </font><font face="Arial, Helvetica, sans-serif" size="2">of
FNMA or FHLMC because FHFA views repudiation as incompatible with </font><font face="Arial, Helvetica, sans-serif" size="2">the goals of the conservatorship. However, in the event that FHFA, as
</font><font face="Arial, Helvetica, sans-serif" size="2">conservator or if it is later appointed as receiver for FNMA or FHLMC, were </font><font face="Arial, Helvetica, sans-serif" size="2">to repudiate any such guaranty obligation, the
conservatorship or </font><font face="Arial, Helvetica, sans-serif" size="2">receivership estate, as applicable, would be liable for actual direct </font><font face="Arial, Helvetica, sans-serif" size="2">compensatory damages in accordance with the
provisions of the Reform </font><font face="Arial, Helvetica, sans-serif" size="2">Act. Any such liability could be satisfied only to the extent of FNMA's or </font><font face="Arial, Helvetica, sans-serif" size="2">FHLMC's assets available
therefor. In the event of repudiation, the payments </font><font face="Arial, Helvetica, sans-serif" size="2">of interest to holders of FNMA or FHLMC mortgage-backed securities </font><font face="Arial, Helvetica, sans-serif" size="2">would be
reduced if payments on the mortgage loans represented in the </font><font face="Arial, Helvetica, sans-serif" size="2">mortgage loan groups related to such mortgage-backed securities are not
</font><font face="Arial, Helvetica, sans-serif" size="2">made by the borrowers or advanced by the servicer. Any actual direct </font><font face="Arial, Helvetica, sans-serif" size="2">compensatory damages for repudiating these guaranty obligations
may not </font><font face="Arial, Helvetica, sans-serif" size="2">be sufficient to offset any shortfalls experienced by such mortgage-backed </font><font face="Arial, Helvetica, sans-serif" size="2">security holders. Further, in its capacity as
conservator or receiver, FHFA has </font><font face="Arial, Helvetica, sans-serif" size="2">the right to transfer or sell any asset or liability of FNMA or FHLMC without </font><font face="Arial, Helvetica, sans-serif" size="2">any approval,
assignment or consent. Although FHFA has stated that it has </font><font face="Arial, Helvetica, sans-serif" size="2">no present intention to do so, if FHFA, as conservator or receiver, were to
</font><font face="Arial, Helvetica, sans-serif" size="2">transfer any such guaranty obligation to another party, holders of FNMA or </font><font face="Arial, Helvetica, sans-serif" size="2">FHLMC mortgage-backed securities would have to rely on
that party for </font><font face="Arial, Helvetica, sans-serif" size="2">satisfaction of the guaranty obligation and would be exposed to the credit </font><font face="Arial, Helvetica, sans-serif" size="2">risk of that party. In addition, certain
rights provided to holders of </font><font face="Arial, Helvetica, sans-serif" size="2">mortgage-backed securities issued by FNMA and FHLMC under the </font><font face="Arial, Helvetica, sans-serif" size="2">operative documents related to such
securities may not be enforced against </font><font face="Arial, Helvetica, sans-serif" size="2">FHFA, or enforcement of such rights may be delayed, during the </font><font face="Arial, Helvetica, sans-serif" size="2">conservatorship or any future
receivership. The operative documents for </font><font face="Arial, Helvetica, sans-serif" size="2">FNMA and FHLMC mortgage-backed securities may provide (or with </font><font face="Arial, Helvetica, sans-serif" size="2">respect to securities issued
prior to the date of the appointment of the </font><font face="Arial, Helvetica, sans-serif" size="2">conservator may have provided) that upon the occurrence of an event of </font><font face="Arial, Helvetica, sans-serif" size="2">default on the
part of FNMA or FHLMC, in its capacity as guarantor, which </font><font face="Arial, Helvetica, sans-serif" size="2">includes the appointment of a conservator or receiver, holders of such
</font><font face="Arial, Helvetica, sans-serif" size="2">mortgage-backed securities have the right to replace FNMA or FHLMC as </font><font face="Arial, Helvetica, sans-serif" size="2">trustee if the requisite percentage of mortgage-backed
securities holders </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
<table width="100%">
<tr>
<td align="left" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">36 &#160;&#160;&#160;&#160; </FONT></p> </td>
<td align="left" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><b>PROSPECTUS</b> | PIMCO Dynamic Income Fund &#160;&#160;&#160;&#160; </FONT></p> </td> </tr>
</table><hr style="size:3;color:#999999;width:100%;"> <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;
</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
<tr>
<td align="right" width="29.5%" colspan="3"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
<tr>
<td align="right" width="29.5%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2">consent. The Reform Act prevents mortgage-backed
security holders from </font><font face="Arial, Helvetica, sans-serif" size="2">enforcing such rights if the event of default arises solely because a </font><font face="Arial, Helvetica, sans-serif" size="2">conservator or receiver has been
appointed. The Reform Act also provides </font><font face="Arial, Helvetica, sans-serif" size="2">that no person may exercise any right or power to terminate, accelerate or </font><font face="Arial, Helvetica, sans-serif" size="2">declare an event
of default under certain contracts to which FNMA or </font><font face="Arial, Helvetica, sans-serif" size="2">FHLMC is a party, or obtain possession of or exercise control over any </font><font face="Arial, Helvetica, sans-serif" size="2">property
of FNMA or FHLMC, or affect any contractual rights of FNMA or </font><font face="Arial, Helvetica, sans-serif" size="2">FHLMC, without the approval of FHFA, as conservator or receiver, for a
</font><font face="Arial, Helvetica, sans-serif" size="2">period of 45 or 90 days following the appointment of FHFA as conservator </font><font face="Arial, Helvetica, sans-serif" size="2">or receiver, respectively. </font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">In addition, in a February 2011 report to Congress from the Treasury Department and the Department of Housing and Urban Development, the Obama administration provided a plan to reform America's housing
finance market. The plan would reduce the role of and eventually eliminate FNMA and FHLMC. Notably, the plan does not propose similar significant changes to GNMA, which guarantees payments on mortgage-related securities backed by federally insured
or guaranteed loans such as those issued by the Federal Housing Association or guaranteed by the VA. The report also identified three proposals for Congress and the administration to consider for the long-term structure of the housing finance
markets after the elimination of FNMA and FHLMC, including implementing: (i) a privatized system of housing finance that limits government insurance to very limited groups of creditworthy low- and moderate-income borrowers; (ii) a privatized system
with a government backstop mechanism that would allow the government to insure a larger share of the housing finance market during a future housing crisis; and (iii) a privatized system where the government would offer reinsurance to holders of
certain highly-rated mortgage-related securities insured by private insurers and would pay out under the reinsurance arrangements only if the private mortgage insurers were insolvent.</font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Commercial banks, savings and loan institutions, private mortgage insurance companies, mortgage bankers and other secondary
market issuers also create pass-through pools of conventional residential mortgage loans. Such issuers may be the originators and/or servicers of the underlying mortgage loans as well as the guarantors of the mortgage-related securities. Pools
created by such non-governmental issuers generally offer a higher rate of interest than government and government-related pools because there are no direct or indirect government or agency guarantees of payments in the former pools. However, timely
payment of interest and principal of these pools may be supported by various forms of insurance or guarantees, including individual loan, title, pool and hazard insurance and letters of credit, which may be issued by governmental entities or private
insurers. Such insurance and guarantees and the creditworthiness of the issuers thereof will be considered in determining whether a mortgage-related security should be purchased for the Fund. There can be no assurance that the private insurers or
guarantors can meet their obligations under the insurance policies or guarantee arrangements. The Fund may, however, invest in mortgage-related securities without insurance or guarantees if PIMCO believes that the securities will help to achieve the
Fund's investment objectives. Securities issued by certain private organizations may not be readily marketable.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2"><i><b>Privately-Issued Mortgage-Related Securities.</b></i> Commercial banks, savings and loan institutions, private mortgage insurance companies, mortgage bankers and other secondary market
issuers also create pass-through pools of conventional residential mortgage loans. Such issuers may be the originators and/or servicers of the underlying mortgage loans as well as the guarantors of the mortgage-related securities. Pools created by
such non-governmental issuers generally offer a higher rate of interest than government and government-related pools because there are no direct or indirect government or agency guarantees of payments in the former pools. However, timely payment of
interest and principal of these pools may be supported by various forms of insurance or guarantees, including individual loan, title, pool and hazard insurance and letters of credit, which may be issued by governmental entities or private insurers.
Such insurance and guarantees and the creditworthiness of the issuers thereof will be considered in determining whether a mortgage-related security meets the Fund's investment quality standards. There can be no assurance that insurers or guarantors
can meet their obligations under the insurance policies or guarantee arrangements. The Fund may buy mortgage-related securities without insurance or guarantees if, through an examination of the loan experience and practices of the
originators/servicers and poolers, PIMCO determines that the securities meet the Fund's quality standards. Securities issued by certain private organizations may not be readily marketable.</font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Privately-issued mortgage-related securities are not subject to the same underwriting requirements for the underlying mortgages that are
applicable to those mortgage-related securities that have a government or government-sponsored entity guarantee. As a result, the mortgage loans underlying privately-issued mortgage-related securities may, and frequently do, have less favorable
collateral, credit risk or other underwriting characteristics than government or government-sponsored mortgage-related securities and have wider variances in a number of terms including interest rate, term, size, purpose and borrower
characteristics. Mortgage pools underlying privately-issued mortgage-related securities more frequently include second mortgages, high loan-to-value ratio mortgages and manufactured housing loans, in addition to commercial mortgages and other types
of mortgages where a government or government-sponsored entity guarantee is not available. The coupon rates and maturities of the underlying mortgage loans in a privately-issued mortgage-related securities pool may vary to a greater extent than
those included in a government guaranteed pool, and the pool may include subprime mortgage loans. Subprime loans are loans made to borrowers with weakened credit histories or with a lower capacity to make timely payments on their loans. For these
reasons, the loans underlying these securities have had in many cases higher default rates than those loans that meet government underwriting requirements.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The risk of non-payment is
greater for mortgage-related securities that are </font><font face="Arial, Helvetica, sans-serif" size="2">backed by loans that were originated under weak underwriting standards, </font><font face="Arial, Helvetica, sans-serif" size="2">including
loans made to borrowers with limited means to make repayment. </font><font face="Arial, Helvetica, sans-serif" size="2">A level of risk exists for all loans, although, historically, the poorest
</font><font face="Arial, Helvetica, sans-serif" size="2">performing loans have been those classified as subprime. Other types of </font><font face="Arial, Helvetica, sans-serif" size="2">privately-issued mortgage-related securities, such as those
classified as pay-</font><font face="Arial, Helvetica, sans-serif" size="2">option adjustable rate or Alt-A have also performed poorly. Even loans </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
<table width="100%">
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<td align="right" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">December 21, 2017 | <b>PROSPECTUS</b></FONT></p> </td>
<td align="right" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">37</FONT></p> </td> </tr> </table><hr style="size:3;color:#999999;width:100%;">
<DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
<tr>
<td align="left" width="29.5%" colspan="3"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
<tr>
<td align="left" width="29.5%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2">classified as prime have experienced higher levels
of delinquencies and </font><font face="Arial, Helvetica, sans-serif" size="2">defaults. The substantial decline in real property values across the U.S. has </font><font face="Arial, Helvetica, sans-serif" size="2">exacerbated the level of losses
that investors in privately-issued mortgage-</font><font face="Arial, Helvetica, sans-serif" size="2">related securities have experienced. It is not certain when these trends may </font><font face="Arial, Helvetica, sans-serif" size="2">reverse.
Market factors that may adversely affect mortgage loan repayment </font><font face="Arial, Helvetica, sans-serif" size="2">include adverse economic conditions, unemployment, a decline in the value </font><font
face="Arial, Helvetica, sans-serif" size="2">of real property, or an increase in interest rates. </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">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.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The
Fund may purchase privately-issued mortgage-related securities that are originated, packaged and serviced by third party entities. It is possible these third parties could have interests that are in conflict with the holders of mortgage-related
securities, and such holders (such as the Fund) could have rights against the third parties or their affiliates. For example, if a loan originator, servicer or its affiliates engaged in negligence or willful misconduct in carrying out its duties,
then a holder of the mortgage-related security could seek recourse against the originator/servicer or its affiliates, as applicable. Also, as a loan originator/servicer, the originator/servicer or its affiliates may make certain representations and
warranties regarding the quality of the mortgages and properties underlying a mortgage-related security. If one or more of those representations or warranties is false, then the holders of the mortgage-related securities (such as the Fund) could
trigger an obligation of the originator/servicer or its affiliates, as applicable, to repurchase the mortgages from the issuing trust.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">Notwithstanding the foregoing, many of the third parties that are legally bound by trust and other documents have failed to perform their respective duties, as stipulated in such trust and other
documents, and investors have had limited success in enforcing terms. To the extent third party entities involved with privately issued mortgage-related securities are involved in litigation relating to the securities, actions may be taken that are
adverse to the interests of holders of the mortgage-related securities, including the Fund. For example, third parties may seek to withhold proceeds due to holders of the mortgage-related securities, including the Fund, to cover legal or related
costs. Any such action could result in losses to the Fund.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">PIMCO seeks to manage the portion of the Fund's assets
committed to </font><font face="Arial, Helvetica, sans-serif" size="2">privately-issued mortgage-related securities in a manner consistent with the </font><font face="Arial, Helvetica, sans-serif" size="2">Fund's investment objectives, policies and
overall portfolio risk profile. In </font><font face="Arial, Helvetica, sans-serif" size="2">determining whether and how much to invest in privately-issued mortgage-</font><font face="Arial, Helvetica, sans-serif" size="2">related securities, and
how to allocate those assets, PIMCO will consider a </font><font face="Arial, Helvetica, sans-serif" size="2">number of factors. These include, but are not limited to: (1) the nature of the
</font><font face="Arial, Helvetica, sans-serif" size="2">borrowers (e.g., residential vs. commercial); (2) the collateral loan type (e.g., </font><font face="Arial, Helvetica, sans-serif" size="2">for residential: First Lien - Jumbo/Prime, First
Lien - Alt-A, First Lien -</font><font face="Arial, Helvetica, sans-serif" size="2">Subprime, First Lien - Pay-Option or Second Lien; for commercial: Conduit, </font><font face="Arial, Helvetica, sans-serif" size="2">Large Loan or Single Asset /
Single Borrower); and (3) in the case of </font><font face="Arial, Helvetica, sans-serif" size="2">residential loans, whether they are fixed rate or adjustable mortgages. Each </font><font face="Arial, Helvetica, sans-serif" size="2">of these
criteria can cause privately-issued mortgage-related securities to </font><font face="Arial, Helvetica, sans-serif" size="2">have differing primary economic characteristics and distinguishable risk </font><font
face="Arial, Helvetica, sans-serif" size="2">factors and performance characteristics. </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"><i><b>Collateralized Mortgage
Obligations.</b></i> A CMO is a debt obligation of a legal entity that is collateralized by mortgages and divided into classes. Similar to a bond, interest and prepaid principal is paid, in most cases, on a monthly basis. CMOs may be collateralized
by whole mortgage loans or private mortgage bonds, but are generally collateralized by portfolios of mortgage pass-through securities guaranteed by GNMA, FHLMC or FNMA and their income streams. CMOs are structured into multiple classes, often
referred to as "tranches," with each class bearing a different stated maturity and entitled to a different schedule for payments of principal and interest, including prepayments. The riskiest portion is the "equity" tranche which bears the bulk of
defaults and serves to protect the other, more senior tranches from default in all but the most severe circumstances. Actual maturity and average life will depend upon the pre-payment experience of the collateral. In the case of certain CMOs (known
as "sequential pay" CMOs), payments of principal received from the pool of underlying mortgages, including prepayments, are applied to the classes of CMOs in the order of their respective final distribution dates. Thus, no payment of principal will
be made to any class of sequential pay CMOs until all other classes having an earlier final distribution date have been paid in full. CMOs may be less liquid and may exhibit greater price volatility than other types of mortgage- or asset-backed
securities.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"><i><b>Commercial Mortgage-Backed Securities.</b></i> CMBSs include securities that reflect an interest in,
and are secured by, mortgage loans on commercial real property. Many of the risks of investing in commercial mortgage-backed securities reflect the risks of investing in the real estate securing the underlying mortgage loans. These risks reflect the
effects of local and other economic conditions on real estate markets, the ability of tenants to make loan payments and the ability of a property to attract and retain tenants. Commercial mortgage-backed securities may be less liquid and exhibit
greater price volatility than other types of mortgage- or asset-backed securities.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"><b><i>CMO Residuals.
</i></b></font><font face="Arial, Helvetica, sans-serif" size="2">CMO residuals are mortgage securities issued by </font><font face="Arial, Helvetica, sans-serif" size="2">agencies or instrumentalities of the U.S. Government or by private </font><font
face="Arial, Helvetica, sans-serif" size="2">originators of, or investors in, mortgage loans, including savings and loan </font><font face="Arial, Helvetica, sans-serif" size="2">associations, homebuilders, mortgage banks, commercial banks,
investment </font><font face="Arial, Helvetica, sans-serif" size="2">banks and special purpose entities of the foregoing. The cash flow </font><font face="Arial, Helvetica, sans-serif" size="2">generated by the mortgage assets underlying a series of
a CMO is applied </font><font face="Arial, Helvetica, sans-serif" size="2">first to make required payments of principal and interest on the CMO and </font><font face="Arial, Helvetica, sans-serif" size="2">second to pay the related administrative
expenses and any management </font><font face="Arial, Helvetica, sans-serif" size="2">fee of the issuer. The residual in a CMO structure generally represents the </font><font face="Arial, Helvetica, sans-serif" size="2">interest in any excess cash
flow remaining after making the foregoing </font><font face="Arial, Helvetica, sans-serif" size="2">payments. Each payment of such excess cash flow to a holder of the related </font><font face="Arial, Helvetica, sans-serif" size="2">CMO residual
represents income and/or a return of capital. The amount of </font><font face="Arial, Helvetica, sans-serif" size="2">residual cash flow resulting from a CMO will depend on, among other
</font><font face="Arial, Helvetica, sans-serif" size="2">things, the characteristics of the mortgage assets, the coupon rate of each </font><font face="Arial, Helvetica, sans-serif" size="2">class of CMO, prevailing interest rates, the amount of
administrative </font><font face="Arial, Helvetica, sans-serif" size="2">expenses and the prepayment experience on the mortgage assets. In </font><font face="Arial, Helvetica, sans-serif" size="2">particular, the yield to maturity on CMO residuals
is extremely sensitive to </font><font face="Arial, Helvetica, sans-serif" size="2">prepayments on the related underlying mortgage assets, in the same </font><font face="Arial, Helvetica, sans-serif" size="2">manner as an interest-only (or IO) class
of stripped mortgage-backed </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
<table width="100%">
<tr>
<td align="left" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">38 &#160;&#160;&#160;&#160; </FONT></p> </td>
<td align="left" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><b>PROSPECTUS</b> | PIMCO Dynamic Income Fund &#160;&#160;&#160;&#160; </FONT></p> </td> </tr>
</table><hr style="size:3;color:#999999;width:100%;"> <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;
</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
<tr>
<td align="right" width="29.5%" colspan="3"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
<tr>
<td align="right" width="29.5%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2">securities (described below). In addition, if a
series of a CMO includes a </font><font face="Arial, Helvetica, sans-serif" size="2">class that bears interest at an adjustable rate, the yield to maturity on the </font><font face="Arial, Helvetica, sans-serif" size="2">related CMO residual will
also be extremely sensitive to changes in the level </font><font face="Arial, Helvetica, sans-serif" size="2">of the index upon which interest rate adjustments are based. As described </font><font face="Arial, Helvetica, sans-serif" size="2">below
with respect to stripped mortgage-backed securities, in certain </font><font face="Arial, Helvetica, sans-serif" size="2">circumstances the Fund may fail to recoup fully its initial investment in a </font><font
face="Arial, Helvetica, sans-serif" size="2">CMO residual. CMO residuals are generally purchased and sold by </font><font face="Arial, Helvetica, sans-serif" size="2">institutional investors through several investment banking firms acting as </font><font
face="Arial, Helvetica, sans-serif" size="2">brokers or dealers. CMO residuals may, or pursuant to an exemption </font><font face="Arial, Helvetica, sans-serif" size="2">therefrom, may not, have been registered under the 1933 Act. CMO </font><font
face="Arial, Helvetica, sans-serif" size="2">residuals, whether or not registered under the 1933 Act, may be subject to </font><font face="Arial, Helvetica, sans-serif" size="2">certain restrictions on transferability. </font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"><i><b>Adjustable Rate Mortgage-Backed Securities.</b></i> ARMs have interest rates that reset at periodic intervals. Acquiring ARMs permits the Fund to participate in increases in prevailing current
interest rates through periodic adjustments in the coupons of mortgages underlying the pool on which ARMs are based. Such ARMs generally have higher current yield and lower price fluctuations than is the case with more traditional fixed income debt
securities of comparable rating and maturity. In addition, when prepayments of principal are made on the underlying mortgages during periods of rising interest rates, the Fund can reinvest the proceeds of such prepayments at rates higher than those
at which they were previously invested. Mortgages underlying most ARMs, however, have limits on the allowable annual or lifetime increases that can be made in the interest rate that the mortgagor pays. Therefore, if current interest rates rise above
such limits over the period of the limitation, the Fund, when holding an ARM, does not benefit from further increases in interest rates. Moreover, when interest rates are in excess of coupon rates (i.e., the rates being paid by mortgagors) of the
mortgages, ARMs behave more like fixed income securities and less like adjustable-rate securities and are subject to the risks associated with fixed income securities. In addition, during periods of rising interest rates, increases in the coupon
rate of adjustable-rate mortgages generally lag current market interest rates slightly, thereby creating the potential for capital depreciation on such securities.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"><b><i>Stripped Mortgage-Backed Securities. </i></b></font><font face="Arial, Helvetica, sans-serif" size="2">SMBSs are derivative multi-</font><font face="Arial, Helvetica, sans-serif" size="2">class
mortgage securities. SMBSs may be issued by agencies or </font><font face="Arial, Helvetica, sans-serif" size="2">instrumentalities of the U.S. Government, or by private originators of, or
</font><font face="Arial, Helvetica, sans-serif" size="2">investors in, mortgage loans, including savings and loan associations, </font><font face="Arial, Helvetica, sans-serif" size="2">mortgage banks, commercial banks, investment banks and special
purpose </font><font face="Arial, Helvetica, sans-serif" size="2">entities of the foregoing. SMBSs are usually structured with two classes that </font><font face="Arial, Helvetica, sans-serif" size="2">receive different proportions of the interest
and principal distributions on a </font><font face="Arial, Helvetica, sans-serif" size="2">pool of mortgage assets. A common type of SMBS will have one class </font><font face="Arial, Helvetica, sans-serif" size="2">receiving some of the interest
and most of the principal from the mortgage </font><font face="Arial, Helvetica, sans-serif" size="2">assets, while the other class will receive most of the interest and the </font><font face="Arial, Helvetica, sans-serif" size="2">remainder of the
principal. In the most extreme case, one class will receive </font><font face="Arial, Helvetica, sans-serif" size="2">all of the interest (the IO class), while the other class will receive all of the </font><font
face="Arial, Helvetica, sans-serif" size="2">principal (the principal-only or PO class). The yield to maturity on an IO class </font><font face="Arial, Helvetica, sans-serif" size="2">is extremely sensitive to the rate of principal payments
(including </font><font face="Arial, Helvetica, sans-serif" size="2">prepayments) on the related underlying mortgage assets, and a rapid rate </font><font face="Arial, Helvetica, sans-serif" size="2">of principal payments may have a material adverse
effect on the Fund's </font><font face="Arial, Helvetica, sans-serif" size="2">yield to maturity from these securities. If the underlying mortgage assets </font><font face="Arial, Helvetica, sans-serif" size="2">experience greater than anticipated
prepayments of principal, the Fund may </font><font face="Arial, Helvetica, sans-serif" size="2">fail to recoup some or all of its initial investment in these securities even if </font><font face="Arial, Helvetica, sans-serif" size="2">the security
is in one of the highest rating categories. </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"><i><b>Collateralized Bond Obligations, Collateralized Loan Obligations
and other Collateralized Debt Obligations.</b></i> The Fund may invest in each of CBOs, CLOs, other CDOs and other similarly structured securities. CBOs, CLOs, and CDOs are types of asset-backed securities. A CBO is a trust which is often backed by
a diversified pool of high risk, below investment grade fixed income securities. The collateral can be from many different types of fixed income securities such as high-yield debt, residential privately-issued mortgage-related securities, commercial
privately-issued mortgage-related securities, trust preferred securities and emerging market debt. A CLO is a trust typically collateralized by a pool of loans, which may include, among others, domestic and foreign senior secured loans, senior
unsecured loans and subordinate corporate loans, including loans that may be rated below investment grade or equivalent unrated loans. Other CDOs are trusts backed by other types of assets representing obligations of various parties. CBOs, CLOs, and
other CDOs may charge management fees and administrative expenses. For CBOs, CLOs and CDOs, the cash flows from the trust are split into two or more portions, called tranches, varying in risk and yield. The riskiest portion is the "equity" tranche
which bears the bulk of defaults from the bonds or loans in the trust and serves to protect the other, more senior tranches from default in all but the most severe circumstances. Since they are is partially protected from defaults, senior tranches
from a CBO trust, CLO trust or trust of another CDO typically have higher ratings and lower yields than their underlying securities, and can be rated investment grade. Despite the protection from the equity tranche, CBO,CLO or other CDO tranches can
experience substantial losses due to actual defaults, increased sensitivity to defaults due to collateral default and disappearance of protecting tranches, market anticipation of defaults, as well as aversion to CBO,CLO or other CDO securities as a
class. The Fund may invest in any tranche, including the equity tranche, of a CBO, CLO or other CDO. The risks of an investment in a CBO, CLO or other CDO depend largely on the type of the collateral securities and the class of the instrument in
which the Fund invests. Normally, CBOs, CLOs and other CDOs are privately offered and sold, and thus are not registered under the securities laws. As a result, investments in CBOs, CLOs and other CDOs may be characterized by the Fund as illiquid
securities; however, an active dealer market may exist for CBOs, CLOs and other CDOs allowing them to qualify for Rule 144A under the 1933 Act. In addition to the normal risks associated with debt instruments discussed elsewhere in this prospectus
and in the Statement of Additional Information (e.g., prepayment risk, credit risk, liquidity risk, market risk, structural risk, legal risk, interest rate risk (which may be exacerbated if the interest rate payable on a structured financing changes
based on multiples of changes in interest rates or inversely to changes in interest rates) and default risk), CBOs, CLOs and other CDOs carry additional risks including, but not limited to: (i) the possibility that distributions from collateral
securities will not be adequate to make interest or other payments; (ii) the quality of the collateral may decline in value or default; (iii) the risk that the Fund may invest in CBOs, CLOs and other CDOs that are subordinate to other classes; and
(iv) the complex structure of the security may not be fully understood at the time of investment and may produce disputes with the issuer or unexpected investment results.</font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
<table width="100%">
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<td align="right" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">December 21, 2017 | <b>PROSPECTUS</b></FONT></p> </td>
<td align="right" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">39</FONT></p> </td> </tr> </table><hr style="size:3;color:#999999;width:100%;">
<DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
<tr>
<td align="left" width="29.5%" colspan="3"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
<tr>
<td align="left" width="29.5%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2"><i><b>Asset-Backed Securities.</b></i>
Asset-backed securities ("ABS") are bonds backed by pools of loans or other receivables. ABS are created from many types of assets, including auto loans, credit card receivables, home equity loans and student loans. ABS are typically issued through
special purpose vehicles that are bankruptcy remote from the issuer of the collateral. The credit quality of an ABS transaction depends on the performance of the underlying assets. To protect ABS investors from the possibility that some borrowers
could miss payments or even default on their loans, ABS include various forms of credit enhancement. Some ABS, particularly home equity loan ABS, are subject to interest rate risk and prepayment risk. A change in interest can affect the pace of
payments on the underlying loans, which in turn affects total return on the securities. ABS also carry credit or default risk. If many borrowers on the underlying loans default, losses could exceed the credit enhancement level and result in losses
to investors in an ABS. In addition, ABS have structural risk due to a unique characteristic known as early amortization, or early payout, risk. Built into the structure of most ABS are triggers for early payout, designed to protect investors from
losses. These triggers are unique to each transaction and can include a big rise in defaults on the underlying loans, a sharp drop in the credit enhancement level or even the bankruptcy of the originator. Once early amortization begins, all incoming
loan payments (after expenses are paid) are used to pay investors as quickly as possible based upon a predetermined priority of payment. The Fund may invest in any tranche, including the equity tranche, of an ABS.</font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund may invest in other types of asset-backed securities that are offered in the marketplace, including Enhanced Equipment Trust
Certificates ("EETCs"). EETCs are typically issued by specially-created trusts established by airlines, railroads, or other transportation corporations. The proceeds of EETCs are used to purchase equipment, such as airplanes, railroad cars, or other
equipment, which in turn serve as collateral for the related issue of the EETCs. The equipment generally is leased by the airline, railroad or other corporation, which makes rental payments to provide the projected cash flow for payments to EETC
holders. Holders of EETCs must look to the collateral securing the certificates, typically together with a guarantee provided by the lessee corporation or its parent company for the payment of lease obligations, in the case of default in the payment
of principal and interest on the EETCs. However, because principal and interest payments on EETCs are funded in the ordinary course by the lessee corporation, the Fund treats EETCs as corporate bonds/obligations for purposes of compliance testing
and related classifications.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Please see "Investment Objectives and Policies&#8212;Mortgage-Related and Other
Asset-Backed Securities" in the Statement of Additional Information and "Principal Risks of the Fund&#8212;Mortgage-Related and Asset-Backed Instruments Risk" in this prospectus for a more detailed description of the types of mortgage-related and
other asset-backed securities in which the Fund may invest and their related risks.</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Municipal Bonds</b></b></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">Municipal bonds share the attributes of debt/fixed income securities in </font><font face="Arial, Helvetica, sans-serif" size="2">general, but are generally issued by states, municipalities and other
political </font><font face="Arial, Helvetica, sans-serif" size="2">subdivisions, agencies, authorities and instrumentalities of states and multi-</font><font face="Arial, Helvetica, sans-serif" size="2">state agencies or authorities, and may be
either taxable or tax-exempt </font><font face="Arial, Helvetica, sans-serif" size="2">instruments. The municipal bonds that the Fund may purchase include </font><font face="Arial, Helvetica, sans-serif" size="2">without limit general obligation
bonds and limited obligation bonds (or </font><font face="Arial, Helvetica, sans-serif" size="2">revenue bonds), including industrial development bonds issued pursuant to </font><font face="Arial, Helvetica, sans-serif" size="2">former federal tax
law. General obligation bonds are obligations involving </font><font face="Arial, Helvetica, sans-serif" size="2">the credit of an issuer possessing taxing power and are payable from such
</font><font face="Arial, Helvetica, sans-serif" size="2">issuer's general revenues and not from any particular source. Limited </font><font face="Arial, Helvetica, sans-serif" size="2">obligation bonds are payable only from the revenues derived
from a </font><font face="Arial, Helvetica, sans-serif" size="2">particular facility or class of facilities or, in some cases, from the proceeds of </font><font face="Arial, Helvetica, sans-serif" size="2">a special excise or other specific revenue
source. Tax exempt private activity </font><font face="Arial, Helvetica, sans-serif" size="2">bonds and industrial development bonds generally are also limited </font><font face="Arial, Helvetica, sans-serif" size="2">obligation bonds and thus are
not payable from the issuer's general </font><font face="Arial, Helvetica, sans-serif" size="2">revenues. The credit and quality of private activity bonds and industrial </font><font face="Arial, Helvetica, sans-serif" size="2">development bonds are
usually related to the credit of the corporate user of </font><font face="Arial, Helvetica, sans-serif" size="2">the facilities. Payment of interest on and repayment of principal of such
</font><font face="Arial, Helvetica, sans-serif" size="2">bonds is the responsibility of the corporate user (and/or any guarantor). </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">The Fund may invest in Build America Bonds, which are tax credit bonds created by the American Recovery and Reinvestment Act of 2009, which authorizes state and local governments to issue Build America
Bonds as taxable bonds in 2009 and 2010, without volume limitations, to finance any capital expenditures for which such issuers could otherwise issue traditional tax-exempt bonds. State and local governments may receive a direct federal subsidy
payment for a portion of their borrowing costs on Build America Bonds equal to 35% of the total coupon interest paid to investors. The state or local government issuer can elect to either take the federal subsidy or pass the 35% tax credit along to
bondholders. The Fund's investments in Build America Bonds will result in taxable income and the Fund may elect to pass through to shareholders the corresponding tax credits. The tax credits can generally be used to offset federal income taxes and
the alternative minimum tax, but such credits are generally not refundable. Build America Bonds involve similar risks as municipal bonds, including credit and market risk. They are intended to assist state and local governments in financing capital
projects at lower borrowing costs and are likely to attract a broader group of investors than tax-exempt municipal bonds. For example, taxable funds, such as the Fund, may choose to invest in Build America Bonds. Although Build America Bonds were
only authorized for issuance during 2009 and 2010, the program may have resulted in reduced issuance of tax-exempt municipal bonds during the same period. The Build America Bond program expired on December 31, 2010, at which point no further
issuance of new Build America Bonds was permitted. As of the date of this prospectus, there is no indication that Congress will renew the program to permit issuance of new Build America Bonds.</font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund may invest in pre-refunded municipal bonds. Pre-refunded </font><font face="Arial, Helvetica, sans-serif" size="2">municipal
bonds are tax-exempt bonds that have been refunded to a call </font><font face="Arial, Helvetica, sans-serif" size="2">date prior to the final maturity of principal, or, in the case of pre-refunded </font><font
face="Arial, Helvetica, sans-serif" size="2">municipal bonds commonly referred to as "escrowed-to-maturity bonds," to </font><font face="Arial, Helvetica, sans-serif" size="2">the final maturity of principal, and remain outstanding in the municipal
</font><font face="Arial, Helvetica, sans-serif" size="2">market. The payment of principal and interest of the pre-refunded municipal </font><font face="Arial, Helvetica, sans-serif" size="2">bonds held by the Fund is funded from securities in a
designated escrow </font><font face="Arial, Helvetica, sans-serif" size="2">account that holds U.S. Treasury securities or other obligations of the U.S. </font><font face="Arial, Helvetica, sans-serif" size="2">Government (including its agencies and
instrumentalities ("Agency </font><font face="Arial, Helvetica, sans-serif" size="2">Securities")). While still tax-exempt, pre-refunded municipal bonds usually </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
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<td align="left" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><b>PROSPECTUS</b> | PIMCO Dynamic Income Fund &#160;&#160;&#160;&#160; </FONT></p> </td> </tr>
</table><hr style="size:3;color:#999999;width:100%;"> <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;
</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
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<td align="right" width="29.5%" colspan="3"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
<tr>
<td align="right" width="29.5%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2">will bear an AAA/Aaa rating (if a re-rating has
been requested and paid for) </font><font face="Arial, Helvetica, sans-serif" size="2">because they are backed by U.S. Treasury securities or Agency Securities. </font><font face="Arial, Helvetica, sans-serif" size="2">Because the payment of
principal and interest is generated from securities </font><font face="Arial, Helvetica, sans-serif" size="2">held in an escrow account established by the municipality and an </font><font face="Arial, Helvetica, sans-serif" size="2">independent
escrow agent, the pledge of the municipality has been fulfilled </font><font face="Arial, Helvetica, sans-serif" size="2">and the original pledge of revenue by the municipality is no longer in place. </font><font
face="Arial, Helvetica, sans-serif" size="2">The escrow account securities pledged to pay the principal and interest of </font><font face="Arial, Helvetica, sans-serif" size="2">the pre-refunded municipal bond do not guarantee the price movement of
</font><font face="Arial, Helvetica, sans-serif" size="2">the bond before maturity. Issuers of municipal bonds refund in advance of </font><font face="Arial, Helvetica, sans-serif" size="2">maturity the outstanding higher cost debt and issue new,
lower cost debt, </font><font face="Arial, Helvetica, sans-serif" size="2">placing the proceeds of the lower cost issuance into an escrow account to </font><font face="Arial, Helvetica, sans-serif" size="2">pre-refund the older, higher cost debt.
Investment in pre-refunded municipal </font><font face="Arial, Helvetica, sans-serif" size="2">bonds held by the Fund may subject the Fund to interest rate risk and </font><font face="Arial, Helvetica, sans-serif" size="2">market risk. In addition,
while a secondary market exists for pre-refunded </font><font face="Arial, Helvetica, sans-serif" size="2">municipal bonds, if the Fund sells pre-refunded municipal bonds prior to </font><font face="Arial, Helvetica, sans-serif" size="2">maturity,
the price received may be more or less than the original cost, </font><font face="Arial, Helvetica, sans-serif" size="2">depending on market conditions at the time of sale. </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund
may invest in municipal lease obligations. A lease is not a full faith and credit obligation of the issuer and is usually backed only by the borrowing government's unsecured pledge to make annual appropriations for lease payments. There have been
challenges to the legality of lease financing in numerous states, and, from time to time, certain municipalities have considered not appropriating money for lease payments. In deciding whether to purchase a lease obligation for the Fund, PIMCO will
assess the financial condition of the borrower, the merits of the project, the level of public support for the project and the legislative history of lease financing in the state. These securities may be less readily marketable than other municipal
securities.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Some longer-term municipal bonds give the investor the right to "put" or sell the security at par (face
value) within a specified number of days following the investor's request&#8212;usually one to seven days. This demand feature enhances a security's liquidity by shortening its effective maturity and enables it to trade at a price equal to or very
close to par. If a demand feature terminates prior to being exercised, the Fund would hold the longer-term security, which could experience substantially more volatility.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2">The Fund may invest in municipal warrants, which are essentially call options on municipal bonds. In exchange for a premium, municipal warrants give the purchaser the right, but not the
obligation, to purchase a municipal bond in the future. The Fund may purchase a warrant to lock in forward supply in an environment in which the current issuance of bonds is sharply reduced. Like options, warrants may expire worthless and may have
reduced liquidity.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund may invest in municipal bonds with credit enhancements such as </font><font
face="Arial, Helvetica, sans-serif" size="2">letters of credit, municipal bond insurance and standby bond purchase </font><font face="Arial, Helvetica, sans-serif" size="2">agreements ("SBPAs"). Letters of credit are issued by a third party, usually
a </font><font face="Arial, Helvetica, sans-serif" size="2">bank, to enhance liquidity and to ensure repayment of principal and any </font><font face="Arial, Helvetica, sans-serif" size="2">accrued interest if the underlying municipal bond should
default. Municipal </font><font face="Arial, Helvetica, sans-serif" size="2">bond insurance, which is usually purchased by the bond issuer from a </font><font face="Arial, Helvetica, sans-serif" size="2">private, nongovernmental insurance company,
provides an unconditional </font><font face="Arial, Helvetica, sans-serif" size="2">and irrevocable guarantee that the insured bond's principal and interest will </font><font face="Arial, Helvetica, sans-serif" size="2">be paid when due. Insurance
does not guarantee the price of the bond. The </font><font face="Arial, Helvetica, sans-serif" size="2">credit rating of an insured bond reflects the credit rating of the insurer, </font><font face="Arial, Helvetica, sans-serif" size="2">based on
its claims-paying ability. The obligation of a municipal bond </font><font face="Arial, Helvetica, sans-serif" size="2">insurance company to pay a claim extends over the life of each insured
</font><font face="Arial, Helvetica, sans-serif" size="2">bond. Although defaults on insured municipal bonds have been low to date </font><font face="Arial, Helvetica, sans-serif" size="2">and municipal bond insurers have met their claims, there is
no assurance </font><font face="Arial, Helvetica, sans-serif" size="2">that this will continue. A higher-than expected default rate could strain the </font><font face="Arial, Helvetica, sans-serif" size="2">insurer's loss reserves and adversely
affect its ability to pay claims to </font><font face="Arial, Helvetica, sans-serif" size="2">bondholders. Because a significant portion of insured municipal bonds that </font><font face="Arial, Helvetica, sans-serif" size="2">have been issued and
are outstanding is insured by a small number of </font><font face="Arial, Helvetica, sans-serif" size="2">insurance companies, not all of which have the highest credit rating, an </font><font face="Arial, Helvetica, sans-serif" size="2">event
involving one or more of these insurance companies, such as a credit </font><font face="Arial, Helvetica, sans-serif" size="2">rating downgrade, could have a significant adverse effect on the value of </font><font
face="Arial, Helvetica, sans-serif" size="2">the municipal bonds insured by such insurance company or companies and </font><font face="Arial, Helvetica, sans-serif" size="2">on the municipal bond markets as a whole. An SBPA is a liquidity facility
</font><font face="Arial, Helvetica, sans-serif" size="2">provided to pay the purchase price of bonds that cannot be re-marketed. </font><font face="Arial, Helvetica, sans-serif" size="2">The obligation of the liquidity provider (usually a bank) is
only to advance </font><font face="Arial, Helvetica, sans-serif" size="2">funds to purchase tendered bonds that cannot be re-marketed and does </font><font face="Arial, Helvetica, sans-serif" size="2">not cover principal or interest under any other
circumstances. The liquidity </font><font face="Arial, Helvetica, sans-serif" size="2">provider's obligations under the SBPA are usually subject to numerous </font><font face="Arial, Helvetica, sans-serif" size="2">conditions, including the
continued creditworthiness of the underlying </font><font face="Arial, Helvetica, sans-serif" size="2">borrower. </font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Loans and
Other Indebtedness; Loan Participations and Assignments<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund may purchase indebtedness and participations in commercial loans, as well as interests and/or servicing or
similar rights in such loans. Such investments may be secured or unsecured and may be newly-originated (and may be specifically designed for the Fund). Indebtedness is different from traditional debt securities in that debt securities are part of a
large issue of securities to the public and indebtedness may not be a security, but may represent a specific commercial loan to a borrower. Loan participations typically represent direct participation, together with other parties, in a loan to a
corporate borrower, and generally are offered by banks or other financial institutions or lending syndicates. The Fund may participate in such syndications, or can buy part of a loan, becoming a part lender. When purchasing indebtedness and loan
participations, the Fund assumes the credit risk associated with the corporate borrower and may assume the credit risk associated with an interposed bank or other financial intermediary. The indebtedness and loan participations in which the Fund
intends to invest may not be rated by any nationally recognized rating service.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">A loan is often administered by an
agent bank acting as agent for all holders. The agent bank administers the terms of the loan, as specified in the loan agreement. In addition, the agent bank is normally responsible for the collection of principal and interest payments from the
corporate borrower and the apportionment of these payments to the credit of all institutions which are parties to the loan agreement. Unless, under the terms of the loan or other indebtedness, the Fund has direct recourse against the corporate
borrower, the Fund may have to rely on the agent bank or other financial intermediary to apply appropriate credit remedies against a corporate borrower.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">A financial institution's employment as agent bank might be terminated in </font><font face="Arial, Helvetica, sans-serif" size="2">the event that it fails to observe a requisite standard of care or
becomes </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
<table width="100%">
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<td align="right" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">December 21, 2017 | <b>PROSPECTUS</b></FONT></p> </td>
<td align="right" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">41</FONT></p> </td> </tr> </table><hr style="size:3;color:#999999;width:100%;">
<DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
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<td align="left" width="29.5%" colspan="3"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
<tr>
<td align="left" width="29.5%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2">insolvent. A successor agent bank would generally
be appointed to replace </font><font face="Arial, Helvetica, sans-serif" size="2">the terminated agent bank, and assets held by the agent bank under the </font><font face="Arial, Helvetica, sans-serif" size="2">loan agreement would likely remain
available to holders of such </font><font face="Arial, Helvetica, sans-serif" size="2">indebtedness. However, if assets held by the agent bank for the benefit of </font><font face="Arial, Helvetica, sans-serif" size="2">the Fund were determined to
be subject to the claims of the agent bank's </font><font face="Arial, Helvetica, sans-serif" size="2">general creditors, the Fund might incur certain costs and delays in realizing </font><font face="Arial, Helvetica, sans-serif" size="2">payment on
a loan or loan participation and could suffer a loss of principal </font><font face="Arial, Helvetica, sans-serif" size="2">and/or interest. In situations involving other interposed financial institutions </font><font
face="Arial, Helvetica, sans-serif" size="2">(e.g., an insurance company or governmental agency) similar risks may </font><font face="Arial, Helvetica, sans-serif" size="2">arise. </font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2">Purchasers of loans and other forms of direct indebtedness depend primarily upon the creditworthiness of the corporate borrower for payment of principal and interest. If the Fund does not receive
scheduled interest or principal payments on such indebtedness, the NAV, market share price and/or yield of the Common Shares could be adversely affected. Loans that are fully secured offer the Fund more protection than an unsecured loan in the event
of non-payment of scheduled interest or principal. However, there is no assurance that the liquidation of collateral from a secured loan would satisfy the corporate borrower's obligation, or that the collateral can be liquidated. In the event of the
bankruptcy of a borrower, the Fund could experience delays or limitations in its ability to realize the benefits of any collateral securing a loan.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">The Fund may invest in loan participations with credit quality comparable to that of issuers of its securities investments. Indebtedness of companies whose creditworthiness is poor involves substantially
greater risks, and may be highly speculative. Some companies may never pay off their indebtedness, or may pay only a small fraction of the amount owed. Consequently, when investing in indebtedness of companies with poor credit, the Fund bears a
substantial risk of losing the entire amount invested. The Fund may make investments in indebtedness and loan participations to achieve capital appreciation, rather than to seek income.</font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund will limit the amount of its total assets that it will invest in any one issuer and the Fund will limit the amount of
its total assets that it will invest in issuers within the same industry (except with respect to the Fund's policy to concentrate in privately-issued (commonly known as "non-agency") mortgage-related securities). For purposes of this limit, the Fund
generally will treat the corporate borrower as the "issuer" of indebtedness held by the Fund. In the case of loan participations where a bank or other lending institution serves as a financial intermediary between the Fund and the corporate
borrower, if the participation does not shift to the Fund the direct debtor-creditor relationship with the corporate borrower, SEC interpretations require the Fund to treat both the lending bank or other lending institution and the corporate
borrower as "issuers." Treating a financial intermediary as an issuer of indebtedness may restrict the Fund's ability to invest in indebtedness related to a single financial intermediary, or a group of intermediaries engaged in the same industry,
even if the underlying borrowers represent many different companies and industries.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Loans and other types of direct
indebtedness (which the Fund may invest in </font><font face="Arial, Helvetica, sans-serif" size="2">or otherwise gain exposure to) may not be readily marketable and may be </font><font face="Arial, Helvetica, sans-serif" size="2">subject to
restrictions on resale. In some cases, negotiations involved in </font><font face="Arial, Helvetica, sans-serif" size="2">disposing of indebtedness may require weeks to complete. Consequently,
</font><font face="Arial, Helvetica, sans-serif" size="2">some indebtedness may be difficult or impossible to dispose of readily at </font><font face="Arial, Helvetica, sans-serif" size="2">what PIMCO believes to be a fair price. In addition,
valuation of illiquid </font><font face="Arial, Helvetica, sans-serif" size="2">indebtedness involves a greater degree of judgment in determining the </font><font face="Arial, Helvetica, sans-serif" size="2">Fund's NAV than if that value were based
on available market quotations, </font><font face="Arial, Helvetica, sans-serif" size="2">and could result in significant variations in the Fund's daily share price. At </font><font face="Arial, Helvetica, sans-serif" size="2">the same time, some
loan interests are traded among certain financial </font><font face="Arial, Helvetica, sans-serif" size="2">institutions and accordingly may be deemed liquid. As the market for </font><font face="Arial, Helvetica, sans-serif" size="2">different
types of indebtedness develops, the liquidity of these instruments </font><font face="Arial, Helvetica, sans-serif" size="2">is expected to improve. Investments in loan participations are considered to </font><font
face="Arial, Helvetica, sans-serif" size="2">be debt obligations for purposes of the Fund's investment restriction </font><font face="Arial, Helvetica, sans-serif" size="2">relating to the lending of funds or assets by the Fund. </font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Investments in loans through a purchase of a loan or direct assignment of a financial institution's interests with respect to a loan may
involve additional risks to the Fund. 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 purchaser of an assignment may differ from, and be more limited than, those held by the assigning lender. If a loan is
foreclosed, the Fund could become part owner of any collateral, and would bear the costs and liabilities associated with owning and disposing of the collateral. In addition, it is conceivable that under emerging legal theories of lender liability,
the Fund could be held liable as co-lender. It is unclear whether loans and other forms of direct indebtedness offer securities law protections against fraud and misrepresentation. In the absence of definitive regulatory guidance, the Fund relies on
PIMCO's research in an attempt to avoid situations where fraud or misrepresentation could adversely affect the Fund.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2">The Fund may invest in debtor-in-possession financings (commonly known as "DIP financings"). DIP financings are arranged when an entity seeks the protections of the bankruptcy court under Chapter
11 of the U.S. Bankruptcy Code. These financings allow the entity to continue its business operations while reorganizing under Chapter 11. Such financings constitute senior liens on unencumbered security (i.e., security not subject to other
creditors' claims). There is a risk that the entity will not emerge from Chapter 11 and be forced to liquidate its assets under Chapter 7 of the U.S. Bankruptcy Code. In the event of liquidation, the Fund's only recourse will be against the property
securing the DIP financing.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Various state licensing requirements could apply to the Fund with respect to investments
in loans and similar assets. The licensing requirements could apply depending on the location of the borrower, the location of the collateral securing the loan, or the location where the Fund or PIMCO operates or has offices. In states in which it
is licensed, the Fund or PIMCO will be required to comply with applicable laws and regulations, including consumer protection and anti-fraud laws, which could impose restrictions on the Fund's or PIMCO's ability to take certain actions to protect
the value of its investments in such assets and impose compliance costs. Failure to comply with such laws and regulations could lead to, among other penalties, a loss of the Fund's or PIMCO's license, which in turn could require the Fund to divest
assets located in or secured by real property located in that state. These risks will also apply to issuers and entities in which the Fund invests that hold similar assets, as well as any origination company or servicer in which the Fund owns an
interest.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
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<td align="left" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">42 &#160;&#160;&#160;&#160; </FONT></p> </td>
<td align="left" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><b>PROSPECTUS</b> | PIMCO Dynamic Income Fund &#160;&#160;&#160;&#160; </FONT></p> </td> </tr>
</table><hr style="size:3;color:#999999;width:100%;"> <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;
</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
<tr>
<td align="right" width="29.5%" colspan="3"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
<tr>
<td align="right" width="29.5%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2">Loan origination and servicing companies are
routinely involved in legal proceedings concerning matters that arise in the ordinary course of their business. These legal proceedings range from actions involving a single plaintiff to class action lawsuits with potentially tens of thousands of
class members. 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
seeks to engage in 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 investments.</font></p>
<p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Delayed Funding Loans and Revolving Credit Facilities</b></b></font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund may enter into, or acquire participations in, delayed funding loans and revolving credit facilities, in which a bank or
other lender agrees to make loans up to a maximum amount upon demand by the borrower during a specified term. These commitments may have the effect of requiring the Fund to increase its investment in a company at a time when it might not be
desirable to do so (including at a time when the company's financial condition makes it unlikely that such amounts will be repaid). Delayed funding loans and revolving credit facilities are subject to credit, interest rate and liquidity risk and the
risks of being a lender.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Bonds<br> </b></b></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund may invest in a wide variety of bonds of varying maturities issued by non-U.S. (foreign) and U.S. corporations and other business
entities, governments and quasi-governmental entities and municipalities and other issuers. Bonds may include, among other things, fixed or variable/floating-rate debt obligations, including bills, notes, debentures, money market instruments and
similar instruments and securities. Bonds generally are used by corporations as well as governments and other issuers to borrow money from investors. The issuer pays the investor a fixed or variable rate of interest and normally must repay the
amount borrowed on or before maturity. Certain bonds are "perpetual" in that they have no maturity date.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font
face="Arial, Helvetica, sans-serif" size="3"><b><b>Preferred Securities<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Preferred securities represent an equity interest in a company that generally </font><font
face="Arial, Helvetica, sans-serif" size="2">entitles the holder to receive, in preference to the holders of other stocks </font><font face="Arial, Helvetica, sans-serif" size="2">such as common stocks, dividends and a fixed share of the proceeds
</font><font face="Arial, Helvetica, sans-serif" size="2">resulting from liquidation of the company. Unlike common stocks, preferred </font><font face="Arial, Helvetica, sans-serif" size="2">securities usually do not have voting rights. Preferred
securities in some </font><font face="Arial, Helvetica, sans-serif" size="2">instances are convertible into common stock. Some preferred securities also </font><font face="Arial, Helvetica, sans-serif" size="2">entitle their holders to receive
additional liquidation proceeds on the same </font><font face="Arial, Helvetica, sans-serif" size="2">basis as holders of a company's common stock, and thus also represent an </font><font face="Arial, Helvetica, sans-serif" size="2">ownership
interest in the company. Some preferred securities offer a fixed </font><font face="Arial, Helvetica, sans-serif" size="2">rate of return with no maturity date. Because they never mature, these
</font><font face="Arial, Helvetica, sans-serif" size="2">preferred securities may act like long-term bonds, can be more volatile than </font><font face="Arial, Helvetica, sans-serif" size="2">other types of preferred securities and may have
heightened sensitivity to </font><font face="Arial, Helvetica, sans-serif" size="2">changes in interest rates. Other preferred securities have a variable </font><font face="Arial, Helvetica, sans-serif" size="2">dividend, generally determined on a
quarterly or other periodic basis, either </font><font face="Arial, Helvetica, sans-serif" size="2">according to a formula based upon a specified premium or discount to the </font><font face="Arial, Helvetica, sans-serif" size="2">yield on
particular U.S. Treasury securities or based on an auction process, </font><font face="Arial, Helvetica, sans-serif" size="2">involving bids submitted by holders and prospective purchasers of such </font><font
face="Arial, Helvetica, sans-serif" size="2">securities. Although they are equity securities, preferred securities have </font><font face="Arial, Helvetica, sans-serif" size="2">certain characteristics of both debt securities and common stock. They
are </font><font face="Arial, Helvetica, sans-serif" size="2">like debt securities in that their stated income is generally contractually </font><font face="Arial, Helvetica, sans-serif" size="2">fixed. They are like common stocks in that they do
not have rights to </font><font face="Arial, Helvetica, sans-serif" size="2">precipitate bankruptcy proceedings or collection activities in the event of </font><font face="Arial, Helvetica, sans-serif" size="2">missed payments. Furthermore,
preferred securities have many of the key </font><font face="Arial, Helvetica, sans-serif" size="2">characteristics of equity due to their subordinated position in an issuer's </font><font face="Arial, Helvetica, sans-serif" size="2">capital
structure and because their quality and value are heavily dependent </font><font face="Arial, Helvetica, sans-serif" size="2">on the profitability of the issuer rather than on any legal claims to specific </font><font
face="Arial, Helvetica, sans-serif" size="2">assets or cash flows. Because preferred securities represent an equity </font><font face="Arial, Helvetica, sans-serif" size="2">ownership interest in a company, their value usually will react more
strongly </font><font face="Arial, Helvetica, sans-serif" size="2">than bonds and other debt instruments to actual or perceived changes in a </font><font face="Arial, Helvetica, sans-serif" size="2">company's financial condition or prospects, or to
fluctuations in the equity </font><font face="Arial, Helvetica, sans-serif" size="2">markets. </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">In order to be payable,
dividends on preferred securities must be declared by the issuer's board of directors. In addition, distributions on preferred securities may be subject to deferral and thus may not be automatically payable. Income payments on some preferred
securities are cumulative, causing dividends and distributions to accrue even if they are not declared by the board of directors of the issuer or otherwise made payable. Other preferred securities are non-cumulative, meaning that skipped dividends
and distributions do not continue to accrue. There is no assurance that dividends on preferred securities in which the Fund invests will be declared or otherwise made payable.</font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Preferred securities have a liquidation value that generally equals their original purchase price at the date of issuance. The
market values of preferred securities may be affected by favorable and unfavorable changes affecting the issuers' industries or sectors. They also may be affected by actual and anticipated changes or ambiguities in the tax status of the security and
by actual and anticipated changes or ambiguities in tax laws, such as changes in corporate and individual income tax rates or the rates applicable to dividends. The dividends paid on the preferred securities in which the Fund invests might not be
eligible for the favorable tax treated accorded to "qualified dividend income." See "Taxation" in the Statement of Additional Information. Because the claim on an issuer's earnings represented by preferred securities may become disproportionately
large when interest rates fall below the rate payable on the securities or for other reasons, the issuer may redeem preferred securities, generally after an initial period of call protection in which the security is not redeemable. Thus, in
declining interest rate environments in particular, the Fund's holdings of higher dividend-paying preferred securities may be reduced and the Fund may be unable to acquire securities paying comparable rates with the redemption proceeds.</font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
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<td align="right" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">December 21, 2017 | <b>PROSPECTUS</b></FONT></p> </td>
<td align="right" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">43</FONT></p> </td> </tr> </table><hr style="size:3;color:#999999;width:100%;">
<DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p>
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<tr>
<td align="left" width="29.5%" colspan="3"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
<tr>
<td align="left" width="29.5%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table>
<p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Convertible Securities and Synthetic Convertible Securities<br> </b></b></font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2">Convertible securities (i.e., debt securities that may be converted at either a stated price or stated rate into underlying shares of common stock) have general characteristics similar to both
debt securities and equity securities. Although to a lesser extent than with debt obligations, the market value of convertible securities tends to decline as interest rates increase and, conversely, tends to increase as interest rates decline. In
addition, because of the conversion feature, the market value of convertible securities tends to vary with fluctuations in the market value of the underlying common stocks and, therefore, also will react to variations in the general market for
equity securities.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Convertible securities are investments that provide for a stable stream of income with generally
higher yields than common stocks. There can be no assurance of current income because the issuers of the convertible securities may default on their obligations. Convertible securities, however, generally offer lower interest or dividend yields than
non-convertible debt securities of similar credit quality because of the potential for equity-related capital appreciation. A convertible security, in addition to providing current income, offers the potential for capital appreciation through the
conversion feature, which enables the holder to benefit from increases in the market price of the underlying common stock.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">The Fund may invest in synthetic convertible securities, which are created through a combination of separate securities that possess the two principal characteristics of a traditional convertible
security, that is, an income-producing component and the right to acquire a convertible component. The income-producing component is achieved by investing in non-convertible, income-producing securities such as bonds, preferred securities and money
market instruments. The convertible component is achieved by purchasing warrants or options to buy common stock at a certain exercise price, or options on a stock index. The Fund may also purchase synthetic securities created by other parties,
typically investment banks, including convertible structured notes. The income-producing and convertible components of a synthetic convertible security may be issued separately by different issuers and at different times. The values of synthetic
convertible securities will respond differently to market fluctuations than a traditional convertible security because a synthetic convertible is composed of two or more separate securities or instruments, each with its own market value. Synthetic
convertible securities are also subject to the risks associated with derivatives. See "Principal Risks of the Fund&#8212;Derivatives Risk." In addition, if the value of the underlying common stock or the level of the index involved in the
convertible element falls below the strike price of the warrant or option, the warrant or option may lose all value.</font></p>
<p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Contingent Convertible Securities Risk</b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Contingent convertible
securities ("CoCos") are a form of hybrid debt </font><font face="Arial, Helvetica, sans-serif" size="2">security that is structured to either convert into equity or have their principal
</font><font face="Arial, Helvetica, sans-serif" size="2">written down upon the occurrence of certain "triggers." The triggers are </font><font face="Arial, Helvetica, sans-serif" size="2">generally linked to regulatory capital thresholds or
regulatory actions calling </font><font face="Arial, Helvetica, sans-serif" size="2">into question the issuing banking institution's continued viability as a </font><font face="Arial, Helvetica, sans-serif" size="2">going-concern. CoCos' unique
equity conversion or principal write-down </font><font face="Arial, Helvetica, sans-serif" size="2">features are tailored to the issuing banking institution and its regulatory </font><font face="Arial, Helvetica, sans-serif" size="2">requirements.
Some additional risks associated with CoCos include, but are </font><font face="Arial, Helvetica, sans-serif" size="2">not limited to: </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"><i>Loss absorption risk.</i> CoCos have fully discretionary coupons. This means coupons can potentially be cancelled at the banking institution's discretion or at the request of the relevant regulatory
authority in order to help the bank absorb losses.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"><i>Subordinated instruments.</i> CoCos will, in the majority of
circumstances, be issued in the form of subordinated debt instruments in order to provide the appropriate regulatory capital treatment prior to a conversion. Accordingly, in the event of liquidation, dissolution or winding-up of an issuer prior to a
conversion having occurred, the rights and claims of the holders of the CoCos, such as the Fund, against the issuer in respect of or arising under the terms of the CoCos shall generally rank junior to the claims of all holders of unsubordinated
obligations of the issuer. In addition, if the CoCos are converted into the issuer's underlying equity securities following a conversion event (i.e., a "trigger"), each holder will be subordinated due to their conversion from being the holder of a
debt instrument to being the holder of an equity instrument.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"><i>Market value will fluctuate based on unpredictable
factors.</i> The value of CoCos is unpredictable and will be influenced by many factors including, without limitation: (i) the creditworthiness of the issuer and/or fluctuations in such issuer's applicable capital ratios; (ii) supply and demand for
the CoCos; (iii) general market conditions and available liquidity; and (iv) economic, financial and political events that affect the issuer, its particular market or the financial markets in general.</font></p>
<p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Reverse Repurchase Agreements and Dollar Rolls<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">As described
under "Use of Leverage," the Fund may use, among other things, reverse repurchase agreements and/or dollar rolls to add leverage to its portfolio. Under a reverse repurchase agreement, the Fund sells securities to a bank or broker dealer and agrees
to repurchase the securities at a mutually agreed future date and price. A dollar roll is similar to a reverse repurchase agreement except that the counterparty with which the Fund enters into a dollar roll transaction is not obligated to return the
same securities as those originally sold by the Fund, but only securities that are "substantially identical." Generally, the effect of a reverse repurchase agreement or dollar roll transaction is that the Fund can recover and reinvest all or most of
the cash invested in the portfolio securities involved during the term of the agreement and still be entitled to the returns associated with those portfolio securities, thereby resulting in a transaction similar to a borrowing and giving rise to
leverage for the Fund. The Fund will incur interest expense as a cost of utilizing reverse repurchase agreements and dollar rolls. In the event the buyer of securities under a reverse repurchase agreement or dollar roll files for bankruptcy or
becomes insolvent, the Fund's use of the proceeds of the agreement may be restricted pending a determination by the other party, or its trustee or receiver, whether to enforce the Fund's obligation to repurchase the securities.</font></p>
<p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Commercial Paper<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">Commercial paper represents short-term unsecured promissory notes issued </font><font face="Arial, Helvetica, sans-serif" size="2">in bearer form by corporations such as banks or bank holding companies
</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
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<td align="left" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">44 &#160;&#160;&#160;&#160; </FONT></p> </td>
<td align="left" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><b>PROSPECTUS</b> | PIMCO Dynamic Income Fund &#160;&#160;&#160;&#160; </FONT></p> </td> </tr>
</table><hr style="size:3;color:#999999;width:100%;"> <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;
</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
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<td align="right" width="29.5%" colspan="3"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
<tr>
<td align="right" width="29.5%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2">and finance companies. The rate of return on
commercial paper may be </font><font face="Arial, Helvetica, sans-serif" size="2">linked or indexed to the level of exchange rates between the U.S. dollar and </font><font face="Arial, Helvetica, sans-serif" size="2">a foreign currency or
currencies. </font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>U.S. Government Securities</b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">U.S.
Government securities are obligations of and, in certain cases, guaranteed by, the U.S. Government, its agencies or instrumentalities. The U.S. Government does not guarantee the NAV of the Fund's shares. Some U.S. Government securities, such as
Treasury bills, notes and bonds, and securities guaranteed by GNMA, are supported by the full faith and credit of the United States; others, such as those of the FHLBs, are supported by the right of the issuer to borrow from the U.S. Department of
the Treasury (the "U.S. Treasury"); others, such as those of 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 instrumentality.
U.S. Government securities may include zero coupon securities, which do not distribute interest on a current basis and tend to be subject to greater risk than interest-paying securities of similar maturities.</font></p>
<p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Bank Capital Securities and Bank Obligations<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2">The Fund may invest in bank capital securities of both non-U.S. (foreign) and U.S. issuers. Bank capital securities are issued by banks to help fulfill their regulatory capital requirements.
There are three common types of bank capital: Lower Tier II, Upper Tier II and Tier I. Upper Tier II securities are commonly thought of as hybrids of debt and preferred stock. Upper Tier II securities are often perpetual (with no maturity date),
callable and have a cumulative interest deferral feature. This means that under certain conditions, the issuer bank can withhold payment of interest until a later date. However, such deferred interest payments generally earn interest. Tier I
securities often take the form of trust preferred securities.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund may also invest in other bank obligations
including without limitation certificates of deposit, bankers' acceptances and fixed time deposits. Certificates of deposit are negotiable certificates that are issued against funds deposited in a commercial bank for a definite period of time and
that earn a specified return. Bankers' acceptances are negotiable drafts or bills of exchange, normally drawn by an importer or exporter to pay for specific merchandise, which are "accepted" by a bank, meaning, in effect, that the bank
unconditionally agrees to pay the face value of the instrument on maturity. Fixed time deposits are bank obligations payable at a stated maturity date and bearing interest at a fixed rate. Fixed time deposits may be withdrawn on demand by the
investor, but may be subject to early withdrawal penalties which vary depending upon market conditions and the remaining maturity of the obligation. There are generally no contractual restrictions on the right to transfer a beneficial interest in a
fixed time deposit to a third party, although there is generally no market for such deposits. The Fund may also hold funds on deposit with its custodian bank in an interest-bearing account for temporary purposes.</font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Zero-Coupon Bonds, Step-ups and Payment-in-kind Securities<br>
</b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Zero-coupon bonds pay interest only at maturity rather than at intervals </font><font face="Arial, Helvetica, sans-serif" size="2">during the life of the security. Like
zero-coupon bonds, "step up" bonds pay </font><font face="Arial, Helvetica, sans-serif" size="2">no interest initially but eventually begin to pay a coupon rate prior to </font><font face="Arial, Helvetica, sans-serif" size="2">maturity, which rate
may increase at stated intervals during the life of the </font><font face="Arial, Helvetica, sans-serif" size="2">security. Payment-in-kind securities ("PIKs") are debt obligations that pay
</font><font face="Arial, Helvetica, sans-serif" size="2">"interest" in the form of other debt obligations, instead of in cash. Each of </font><font face="Arial, Helvetica, sans-serif" size="2">these instruments is normally issued and traded at a
deep discount from </font><font face="Arial, Helvetica, sans-serif" size="2">face value. Zero-coupon bonds, step-ups and PIKs allow an issuer to avoid </font><font face="Arial, Helvetica, sans-serif" size="2">or delay the need to generate cash to
meet current interest payments and, </font><font face="Arial, Helvetica, sans-serif" size="2">as a result, may involve greater credit risk than bonds that pay interest </font><font face="Arial, Helvetica, sans-serif" size="2">currently or in cash.
The Fund would be required to distribute the income on </font><font face="Arial, Helvetica, sans-serif" size="2">these instruments as it accrues, even though the Fund will not receive the
</font><font face="Arial, Helvetica, sans-serif" size="2">income on a current basis or in cash. Thus, the Fund may have to sell </font><font face="Arial, Helvetica, sans-serif" size="2">investments, including when it may not be advisable to do so,
to make </font><font face="Arial, Helvetica, sans-serif" size="2">income distributions to its shareholders. </font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Inflation-Indexed
Bonds<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Inflation-indexed bonds (other than municipal inflation-indexed bonds and certain corporate inflation-indexed bonds) are fixed income securities the principal value
of which is periodically adjusted according to the rate of inflation. If the index measuring inflation falls, the principal value of inflation-indexed bonds (other than municipal inflation-indexed bonds and certain corporate inflation-indexed bonds)
will be adjusted downward, and consequently the interest payable on these securities (calculated with respect to a smaller principal amount) will be reduced. Repayment of the original bond principal upon maturity (as adjusted for inflation) is
guaranteed in the case of TIPS. For bonds that do not provide a similar guarantee, the adjusted principal value of the bond repaid at maturity may be less than the original principal. TIPS may also be divided into individual zero-coupon instruments
for each coupon or principal payment (known as "iSTRIPS"). An iSTRIP of the principal component of a TIPS issue will retain the embedded deflation floor that will allow the holder of the security to receive the greater of the original principal or
inflation-adjusted principal value at maturity. iSTRIPS may be less liquid than conventional TIPS because they are a small component of the TIPS market. Municipal inflation-indexed securities are municipal bonds that pay coupons based on a fixed
rate plus CPI. With regard to municipal inflation-indexed bonds and certain corporate inflation-indexed bonds, the inflation adjustment is typically reflected in the semi-annual coupon payment. As a result, the principal value of municipal
inflation-indexed bonds and such corporate inflation-indexed bonds does not adjust according to the rate of inflation. At the same time, the value of municipal inflation-indexed securities and such corporate inflation-indexed securities generally
will not increase if the rate of inflation decreases. Because municipal inflation-indexed securities and corporate inflation-indexed securities are a small component of the municipal bond and corporate bond markets, respectively, they may be less
liquid than conventional municipal and corporate bonds.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The value of inflation-indexed bonds is expected to change in
response to changes in real interest rates. Real interest rates are tied to the relationship between nominal interest rates and the rate of inflation. If nominal interest rates increase at a faster rate than inflation, real interest rates may rise,
leading to a decrease in value of inflation-indexed bonds. Any increase in the principal amount of an inflation-indexed bond will be considered taxable ordinary income, even though investors do not receive their principal until maturity. See
"Taxation" in the Statement of Additional Information.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
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<td align="right" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">December 21, 2017 | <b>PROSPECTUS</b></FONT></p> </td>
<td align="right" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">45</FONT></p> </td> </tr> </table><hr style="size:3;color:#999999;width:100%;">
<DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
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<tr>
<td align="left" width="29.5%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table>
<p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Event-Linked Instruments<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">The Fund may obtain event-linked exposure by investing in "event-linked bonds" or "event-linked swaps" or by implementing "event-linked strategies." Event-linked exposure results in gains or losses that
typically are contingent upon, or formulaically related to, defined trigger events. Examples of trigger events include hurricanes, earthquakes, weather-related phenomena or statistics relating to such events. Some event-linked bonds are commonly
referred to as "catastrophe bonds." If a trigger event occurs, the Fund may lose a portion or its entire principal invested in the bond or notional amount on a swap. Event-linked exposure often provides for an extension of maturity to process and
audit loss claims when a trigger event has, or possibly has, occurred. An extension of maturity may increase volatility. Event-linked exposure may also expose the Fund to certain other risks including credit risk, counterparty risk, adverse
regulatory or jurisdictional interpretations and adverse tax consequences. Event-linked exposures may also be subject to liquidity risk.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p>
<p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Variable- and Floating-rate Securities</b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Variable- and
floating-rate instruments are instruments that pay interest at rates that adjust whenever a specified interest rate changes and/or that reset on predetermined dates (such as the last day of a month or calendar quarter). In addition to senior loans,
variable- and floating-rate instruments may include, without limitation, instruments such as catastrophe and other event-linked bonds, bank capital securities, unsecured bank loans, corporate bonds, money market instruments and certain types of
mortgage-related and other asset-backed securities. Due to their variable- or floating-rate features, these instruments will generally pay higher levels of income in a rising interest rate environment and lower levels of income as interest rates
decline. For the same reason, the market value of a variable- or floating-rate instrument is generally expected to have less sensitivity to fluctuations in market interest rates than a fixed-rate instrument, although the value of a variable- or
floating-rate instrument may nonetheless decline as interest rates rise and due to other factors, such as changes in credit quality.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">The Fund also may engage in credit spread trades. A credit spread trade is an investment position relating to a difference in the prices or interest rates of two bonds or other securities, in which the
value of the investment position is determined by changes in the difference between the prices or interest rates, as the case may be, of the respective securities.</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font
face="Arial, Helvetica, sans-serif" size="3"><b><b>Inverse Floaters<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">An inverse floater is a type of debt instrument that bears a floating or </font><font
face="Arial, Helvetica, sans-serif" size="2">variable interest rate that moves in the opposite direction to interest rates </font><font face="Arial, Helvetica, sans-serif" size="2">generally or the interest rate on another security or index. Changes
in </font><font face="Arial, Helvetica, sans-serif" size="2">interest rates generally, or the interest rate of the other security or index, </font><font face="Arial, Helvetica, sans-serif" size="2">inversely affect the interest rate paid on the
inverse floater, with the result </font><font face="Arial, Helvetica, sans-serif" size="2">that the inverse floater's price will be considerably more volatile than that of </font><font face="Arial, Helvetica, sans-serif" size="2">a fixed-rate bond.
The Fund may invest without limit in inverse floaters, </font><font face="Arial, Helvetica, sans-serif" size="2">which brokers typically create by depositing an income-producing </font><font face="Arial, Helvetica, sans-serif" size="2">instrument,
which may be a mortgage-related security, in a trust. The trust </font><font face="Arial, Helvetica, sans-serif" size="2">in turn issues a variable rate security and inverse floaters. The interest rate </font><font
face="Arial, Helvetica, sans-serif" size="2">for the variable rate security is typically determined by an index or an </font><font face="Arial, Helvetica, sans-serif" size="2">auction process, while the inverse floater holder receives the balance of
the </font><font face="Arial, Helvetica, sans-serif" size="2">income from the underlying income-producing instrument less an auction </font><font face="Arial, Helvetica, sans-serif" size="2">fee. The market prices of inverse floaters may be highly
sensitive to changes </font><font face="Arial, Helvetica, sans-serif" size="2">in interest rates and prepayment rates on the underlying securities, and may </font><font face="Arial, Helvetica, sans-serif" size="2">decrease significantly when
interest rates increase or prepayment rates </font><font face="Arial, Helvetica, sans-serif" size="2">change. In a transaction in which the Fund purchases an inverse floater </font><font face="Arial, Helvetica, sans-serif" size="2">from a trust, and
the underlying bond was held by the Fund prior to being </font><font face="Arial, Helvetica, sans-serif" size="2">deposited into the trust, the Fund typically treats the transaction as a
</font><font face="Arial, Helvetica, sans-serif" size="2">secured borrowing for financial reporting purposes. As a result, for financial </font><font face="Arial, Helvetica, sans-serif" size="2">reporting purposes, the Fund will generally incur a
non-cash interest </font><font face="Arial, Helvetica, sans-serif" size="2">expense with respect to interest paid by the trust on the variable rate </font><font face="Arial, Helvetica, sans-serif" size="2">securities, and will recognize additional
interest income in an amount </font><font face="Arial, Helvetica, sans-serif" size="2">directly corresponding to the non-cash interest expense. Therefore, the </font><font face="Arial, Helvetica, sans-serif" size="2">Fund's NAV per Common Share and
performance are not affected by the </font><font face="Arial, Helvetica, sans-serif" size="2">non-cash interest expense. This accounting treatment does not apply to </font><font face="Arial, Helvetica, sans-serif" size="2">inverse floaters acquired
by the Fund when the Fund did not previously own </font><font face="Arial, Helvetica, sans-serif" size="2">the underlying bond. </font></p>
<p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Derivatives<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund may, but is not required to, utilize
various derivative strategies (both long and short positions) 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 use various
derivatives transactions to add leverage to its portfolio. See "Use of Leverage." Generally, derivatives are financial contracts whose value depends upon, or is derived from, the value of an underlying asset, reference rate or index, and may relate
to, among others, individual debt instruments, interest rates, currencies or currency exchange rates, commodities and related indexes. Examples of derivative instruments that the Fund may use include, without limit, futures and forward contracts
(including foreign currency exchange contracts), call and put options (including options on futures contracts), credit default swaps, total return swaps, basis swaps and other swap agreements. The Fund's use of derivative instruments involves risks
different from, or possibly greater than, the risks associated with investment directly in securities and other more traditional investments. See "Principal Risks of the Fund&#8212;Derivatives Risk." Certain types of derivative instruments that the
Fund may utilize are described elsewhere in this section, including those described under "&#8212;Certain interest rate transactions," "&#8212;Hybrid instruments," "&#8212;Credit default swaps" and "&#8212; Structured notes and related instruments."
Please see "Investment Objectives and Policies&#8212;Derivative Instruments" in the Statement of Additional Information for additional information about these and other derivative instruments that the Fund may use and the risks associated with such
instruments. There is no assurance that these derivative strategies will be available at any time or that PIMCO will determine to use them for the Fund or, if used, that the strategies will be successful. In addition, the Fund may be subject to
certain restrictions on its use of derivative strategies imposed by guidelines of one or more rating agencies that may issue ratings for any preferred shares issued by the Fund.</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font
face="Arial, Helvetica, sans-serif" size="3"><b><b>Certain Interest Rate Transactions<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">In order to reduce
the interest rate risk inherent in the Fund's underlying </font><font face="Arial, Helvetica, sans-serif" size="2">investments and capital structure, the Fund may (but is not required to)
</font><font face="Arial, Helvetica, sans-serif" size="2">enter into interest rate swap transactions. Interest rate swaps involve the </font><font face="Arial, Helvetica, sans-serif" size="2">exchange by the Fund with a counterparty of their
respective commitments </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
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<tr>
<td align="left" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">46 &#160;&#160;&#160;&#160; </FONT></p> </td>
<td align="left" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><b>PROSPECTUS</b> | PIMCO Dynamic Income Fund &#160;&#160;&#160;&#160; </FONT></p> </td> </tr>
</table><hr style="size:3;color:#999999;width:100%;"> <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;
</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
<tr>
<td align="right" width="29.5%" colspan="3"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
<tr>
<td align="right" width="29.5%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2">to pay or receive interest, such as an exchange
of fixed rate payments for </font><font face="Arial, Helvetica, sans-serif" size="2">floating rate payments. These transactions generally involve an agreement </font><font face="Arial, Helvetica, sans-serif" size="2">with the swap counterparty to
pay a fixed or variable rate payment in </font><font face="Arial, Helvetica, sans-serif" size="2">exchange for the counterparty paying the Fund the other type of payment </font><font face="Arial, Helvetica, sans-serif" size="2">stream (</font><font
face="Arial, Helvetica, sans-serif" size="2"><i>i.e., </i></font><font face="Arial, Helvetica, sans-serif" size="2">variable or fixed). The payment obligation would be based on </font><font face="Arial, Helvetica, sans-serif" size="2">the notional
amount of the swap. Other forms of interest rate swap </font><font face="Arial, Helvetica, sans-serif" size="2">agreements in which the Fund may invest include without limitation interest
</font><font face="Arial, Helvetica, sans-serif" size="2">rate caps, under which, in return for a premium, one party agrees to make </font><font face="Arial, Helvetica, sans-serif" size="2">payments to the other to the extent that interest rates
exceed a specified </font><font face="Arial, Helvetica, sans-serif" size="2">rate, or "cap;" interest rate floors, under which, in return for a premium, </font><font face="Arial, Helvetica, sans-serif" size="2">one party agrees to make payments to
the other to the extent that interest </font><font face="Arial, Helvetica, sans-serif" size="2">rates fall below a specified rate, or "floor;" and interest rate "collars," under </font><font face="Arial, Helvetica, sans-serif" size="2">which a party
sells a cap and purchases a floor or vice versa in an attempt </font><font face="Arial, Helvetica, sans-serif" size="2">to protect itself against interest rate movements exceeding given minimum
</font><font face="Arial, Helvetica, sans-serif" size="2">or maximum levels. The Fund may (but is not required to) use interest rate </font><font face="Arial, Helvetica, sans-serif" size="2">swap transactions with the intent to reduce or eliminate
the risk that an </font><font face="Arial, Helvetica, sans-serif" size="2">increase in short-term interest rates could pose for the performance of the </font><font face="Arial, Helvetica, sans-serif" size="2">Fund's Common Shares as a result of
leverage, and also may use these </font><font face="Arial, Helvetica, sans-serif" size="2">instruments for other hedging or investment purposes. Any termination of </font><font face="Arial, Helvetica, sans-serif" size="2">an interest rate swap
transaction could result in a termination payment by </font><font face="Arial, Helvetica, sans-serif" size="2">or to the Fund. </font></p>
<p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Credit Default Swaps<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund may enter into credit default
swaps for both investment and risk management purposes, as well as to add leverage to the Fund's portfolio. A credit default swap may have as reference obligations one or more securities that are not currently held by the Fund. The protection
"buyer" in a credit default swap is generally obligated to pay the protection "seller" an upfront or a periodic stream of payments over the term of the contract provided that no credit event, such as a default, on a reference obligation has
occurred. If a credit event occurs, the seller generally must pay the buyer the "par value" (full notional value) of the swap in exchange for an equal face amount of deliverable obligations of the reference entity described in the swap, or the
seller may be required to deliver the related net cash amount, if the swap is cash settled. The Fund may be either the buyer or seller in the transaction. If the Fund is a buyer and no credit event occurs, the Fund may recover nothing if the swap is
held through its termination date. However, if a credit event occurs, the buyer generally may elect to receive the full notional value of the swap from the seller, who, in turn, generally will recover an amount significantly lower than the
equivalent face amount of the obligations of the reference entity, whose value may have significantly decreased, through (i) physical delivery of such obligations by the buyer, (ii) cash settlement or (iii) an auction process. As a seller, the Fund
generally receives an upfront payment or a fixed rate of income throughout the term of the swap provided that there is no credit event. As the seller, the Fund would effectively add leverage to its portfolio because, in addition to its total net
assets, the Fund would be subject to investment exposure on the notional amount of the swap.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The spread of a credit
default swap is the annual amount the protection </font><font face="Arial, Helvetica, sans-serif" size="2">buyer must pay the protection seller over the length of the contract, </font><font face="Arial, Helvetica, sans-serif" size="2">expressed as a
percentage of the notional amount. When spreads rise, </font><font face="Arial, Helvetica, sans-serif" size="2">market perceived credit risk rises and when spreads fall, market perceived
</font><font face="Arial, Helvetica, sans-serif" size="2">credit risk falls. Wider credit spreads and decreasing market values, when </font><font face="Arial, Helvetica, sans-serif" size="2">compared to the notional amount of the swap, represent a
deterioration of </font><font face="Arial, Helvetica, sans-serif" size="2">the referenced entity's credit soundness and a greater likelihood or risk of </font><font face="Arial, Helvetica, sans-serif" size="2">default or other credit event occurring
as defined under the terms of the </font><font face="Arial, Helvetica, sans-serif" size="2">agreement. For credit default swaps on asset-backed securities and credit </font><font face="Arial, Helvetica, sans-serif" size="2">indices, the quoted
market prices and resulting values, as well as the annual </font><font face="Arial, Helvetica, sans-serif" size="2">payment rate, serve as an indication of the current status of the payment/
</font><font face="Arial, Helvetica, sans-serif" size="2">performance risk. </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Credit default swaps 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 illiquidity risk, counterparty risk and credit risk, among other risks associated with
derivative instruments. 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, 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. The Fund's obligations under a credit default swap will be
accrued daily (offset against any amounts owing to the Fund). In connection with credit default swaps in which the Fund is the buyer, the Fund may segregate or "earmark" cash or liquid assets, or enter into certain offsetting positions, with a value
at least equal to the Fund's exposure (any accrued but unpaid net amounts owed by the Fund to any counterparty), on a marked-to-market basis. In connection with credit default swaps in which the Fund is the seller, if the Fund covers its position
through asset segregation, the Fund will segregate or "earmark" cash or liquid assets with a value at least equal to the full notional amount of the Fund's obligation under the swap. Such segregation or "earmarking" will not limit the Fund's
exposure to loss. See "Principal Risks of the Fund&#8212;Segregation and Coverage Risk." and "Principal Risks of the Fund&#8212;Regulatory Risk&#8212;Commodity Pool Operator."</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font
face="Arial, Helvetica, sans-serif" size="3"><b><b>Hybrid Instruments<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">A hybrid instrument is a type of potentially high-risk derivative that combines a traditional bond,
stock or commodity with an option or forward contract. Generally, the principal amount, amount payable upon maturity or redemption, or interest rate of a hybrid is tied (positively or negatively) to the price of some commodity, currency or
securities index or another interest rate or some other economic factor (each a "benchmark"). The interest rate or (unlike most fixed income securities) the principal amount payable at maturity of a hybrid security may be increased or decreased,
depending on changes in the value of the benchmark. An example of a hybrid could be a bond issued by an oil company that pays a small base level of interest with additional interest that accrues in correlation to the extent to which oil prices
exceed a certain predetermined level. Such a hybrid instrument would be a combination of a bond and a call option on oil.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">Hybrids can be used as an efficient means of pursuing a variety of </font><font face="Arial, Helvetica, sans-serif" size="2">investment goals, including currency hedging, duration management and </font><font
face="Arial, Helvetica, sans-serif" size="2">increased total return. Hybrids may not bear interest or pay dividends. The </font><font face="Arial, Helvetica, sans-serif" size="2">value of a hybrid or its interest rate may be a multiple of a
benchmark and, </font><font face="Arial, Helvetica, sans-serif" size="2">as a result, may be leveraged and move (up or down) more steeply and </font><font face="Arial, Helvetica, sans-serif" size="2">rapidly than the benchmark. These benchmarks may
be sensitive to </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
<table width="100%">
<tr>
<td align="right" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">December 21, 2017 | <b>PROSPECTUS</b></FONT></p> </td>
<td align="right" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">47</FONT></p> </td> </tr> </table><hr style="size:3;color:#999999;width:100%;">
<DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
<tr>
<td align="left" width="29.5%" colspan="3"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
<tr>
<td align="left" width="29.5%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2">economic and political events, such as commodity
shortages and currency </font><font face="Arial, Helvetica, sans-serif" size="2">devaluations, which cannot be readily foreseen by the purchaser of a hybrid. </font><font face="Arial, Helvetica, sans-serif" size="2">Under certain conditions, the
redemption value of a hybrid could be zero. </font><font face="Arial, Helvetica, sans-serif" size="2">Thus, an investment in a hybrid may entail significant market risks that are </font><font face="Arial, Helvetica, sans-serif" size="2">not
associated with a similar investment in a traditional, U.S. dollar-</font><font face="Arial, Helvetica, sans-serif" size="2">denominated bond that has a fixed principal amount and pays a fixed rate </font><font
face="Arial, Helvetica, sans-serif" size="2">or floating rate of interest. The purchase of hybrids also exposes the Fund to </font><font face="Arial, Helvetica, sans-serif" size="2">the credit risk of the issuer of the hybrids. These risks may cause
significant </font><font face="Arial, Helvetica, sans-serif" size="2">fluctuations in the NAV of the Common Shares if the Fund invests in hybrid </font><font face="Arial, Helvetica, sans-serif" size="2">instruments. </font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">Certain hybrid instruments may provide exposure to the commodities markets. These are derivative securities with one or more commodity-linked components that have payment features similar to commodity
futures contracts, commodity options or similar instruments. Commodity-linked hybrid instruments may be either equity or debt securities, leveraged or unleveraged, and are considered hybrid instruments because they have both security and
commodity-like characteristics. A portion of the value of these instruments may be derived from the value of a commodity, futures contract, index or other economic variable.</font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Certain issuers of structured products such as hybrid instruments may be deemed to be investment companies as defined in the 1940
Act. As a result, the Fund's investments in these products may be subject to limits applicable to investments in investment companies and may be subject to restrictions contained in the 1940 Act.</font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund's use of commodity-linked instruments may be limited by the Fund's intention to qualify as a regulated investment company and may
limit the Fund's ability to so qualify. In order to qualify for the special tax treatment accorded regulated investment companies and their shareholders, the Fund must, among other things, derive at least 90% of its income from certain specified
sources (qualifying income). Income from certain commodity-linked instruments does not constitute qualifying income to the Fund. The tax treatment of certain other commodity-linked instruments in which the Fund might invest is not certain, in
particular with respect to whether income and gains from such instruments constitute qualifying income. If the Fund were to treat income from a particular instrument as qualifying income and the income were later determined not to constitute
qualifying income and, together with any other nonqualifying income, caused the Fund's nonqualifying income to exceed 10% of its gross income in any taxable year, the Fund would fail to qualify as a regulated investment company unless it is eligible
to and does pay a tax at the Fund level. See "Tax Matters."</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Structured Notes and Related Instruments<br> </b></b></font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund may invest in "structured" notes and other related instruments,
</font><font face="Arial, Helvetica, sans-serif" size="2">which are privately negotiated debt obligations in which the principal and/ </font><font face="Arial, Helvetica, sans-serif" size="2">or interest is determined by reference to the performance
of a benchmark </font><font face="Arial, Helvetica, sans-serif" size="2">asset, market or interest rate (an "embedded index"), such as selected </font><font face="Arial, Helvetica, sans-serif" size="2">securities, an index of securities or specified
interest rates, or the differential </font><font face="Arial, Helvetica, sans-serif" size="2">performance of two assets or markets, such as indexes reflecting bonds. </font><font face="Arial, Helvetica, sans-serif" size="2">Structured instruments
may be issued by corporations, including banks, as </font><font face="Arial, Helvetica, sans-serif" size="2">well as by governmental agencies. Structured instruments frequently are </font><font face="Arial, Helvetica, sans-serif" size="2">assembled
in the form of medium-term notes, but a variety of forms are </font><font face="Arial, Helvetica, sans-serif" size="2">available and may be used in particular circumstances. The terms of such
</font><font face="Arial, Helvetica, sans-serif" size="2">structured instruments normally provide that their principal and/or interest </font><font face="Arial, Helvetica, sans-serif" size="2">payments are to be adjusted upwards or downwards (but
ordinarily not </font><font face="Arial, Helvetica, sans-serif" size="2">below zero) to reflect changes in the embedded index while the structured </font><font face="Arial, Helvetica, sans-serif" size="2">instruments are outstanding. As a result,
the interest and/or principal </font><font face="Arial, Helvetica, sans-serif" size="2">payments that may be made on a structured product may vary widely, </font><font face="Arial, Helvetica, sans-serif" size="2">depending on a variety of factors,
including the volatility of the embedded </font><font face="Arial, Helvetica, sans-serif" size="2">index and the effect of changes in the embedded index on principal and/or </font><font face="Arial, Helvetica, sans-serif" size="2">interest payments.
The rate of return on structured notes may be </font><font face="Arial, Helvetica, sans-serif" size="2">determined by applying a multiplier to the performance or differential </font><font face="Arial, Helvetica, sans-serif" size="2">performance of
the referenced index(es) or other asset(s). Application of a </font><font face="Arial, Helvetica, sans-serif" size="2">multiplier involves leverage that will serve to magnify the potential for gain </font><font
face="Arial, Helvetica, sans-serif" size="2">and the risk of loss. </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund may use structured instruments for
investment purposes and also for risk management purposes, such as to reduce the duration and interest rate sensitivity of the Fund's portfolio, and for leveraging purposes. While structured instruments may offer the potential for a favorable rate
of return from time to time, they also entail certain risks. Structured instruments may be less liquid than other debt securities, and the price of structured instruments may be more volatile. In some cases, depending on the terms of the embedded
index, a structured instrument may provide that the principal and/or interest payments may be adjusted below zero. Structured instruments also may involve significant credit risk and risk of default by the counterparty. Structured instruments may
also be illiquid. Like other sophisticated strategies, the Fund's use of structured instruments may not work as intended. If the value of the embedded index changes in a manner other than that expected by PIMCO, principal and/or interest payments
received on the structured instrument may be substantially less than expected. Also, if PIMCO chooses to use structured instruments to reduce the duration of the Fund's portfolio, this may limit the Fund's return when having a longer duration would
be beneficial (for instance, when interest rates decline).</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p>
<p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Credit-Linked Trust Certificates<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund may invest in
credit-linked trust certificates, which are investments </font><font face="Arial, Helvetica, sans-serif" size="2">in a limited purpose trust or other vehicle which, in turn, invests in a basket
</font><font face="Arial, Helvetica, sans-serif" size="2">of derivative instruments, such as credit default swaps, total return swaps, </font><font face="Arial, Helvetica, sans-serif" size="2">interest rate swaps or other securities, in order to
provide exposure to the </font><font face="Arial, Helvetica, sans-serif" size="2">high yield or another debt securities market. Like an investment in a bond, </font><font face="Arial, Helvetica, sans-serif" size="2">investments in credit-linked
trust certificates represent the right to receive </font><font face="Arial, Helvetica, sans-serif" size="2">periodic income payments (in the form of distributions) and payment of </font><font face="Arial, Helvetica, sans-serif" size="2">principal at
the end of the term of the certificate. However, these payments </font><font face="Arial, Helvetica, sans-serif" size="2">are conditioned on the trust's receipt of payments from, and the trust's </font><font
face="Arial, Helvetica, sans-serif" size="2">potential obligations to, the counterparties to the derivative instruments </font><font face="Arial, Helvetica, sans-serif" size="2">and other securities in which the trust invests. For instance, the
trust may </font><font face="Arial, Helvetica, sans-serif" size="2">sell one or more credit default swaps, under which the trust would receive a </font><font face="Arial, Helvetica, sans-serif" size="2">stream of payments over the term of the swap
agreements provided that no </font><font face="Arial, Helvetica, sans-serif" size="2">event of default has occurred with respect to the referenced debt obligation </font><font face="Arial, Helvetica, sans-serif" size="2">upon which the swap is
based. If a default occurs, the stream of payments </font><font face="Arial, Helvetica, sans-serif" size="2">may stop and the trust would be obligated to pay to the counterparty the </font><font face="Arial, Helvetica, sans-serif" size="2">par (or
other agreed upon value) of the referenced debt obligation. This, in </font><font face="Arial, Helvetica, sans-serif" size="2">turn, would reduce the amount of income and principal that the Fund </font><font
face="Arial, Helvetica, sans-serif" size="2">would receive as an investor in the trust. The Fund's investments in these </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
<table width="100%">
<tr>
<td align="left" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">48 &#160;&#160;&#160;&#160; </FONT></p> </td>
<td align="left" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><b>PROSPECTUS</b> | PIMCO Dynamic Income Fund &#160;&#160;&#160;&#160; </FONT></p> </td> </tr>
</table><hr style="size:3;color:#999999;width:100%;"> <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;
</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
<tr>
<td align="right" width="29.5%" colspan="3"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
<tr>
<td align="right" width="29.5%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2">instruments are indirectly subject to the risks
associated with derivative </font><font face="Arial, Helvetica, sans-serif" size="2">instruments, including, among others, credit risk, default or similar event </font><font face="Arial, Helvetica, sans-serif" size="2">risk, counterparty risk,
interest rate risk, leverage risk, valuation risk and </font><font face="Arial, Helvetica, sans-serif" size="2">management risk. It is expected that the trusts that issue credit-linked trust
</font><font face="Arial, Helvetica, sans-serif" size="2">certificates will constitute "private" investment companies, exempt from </font><font face="Arial, Helvetica, sans-serif" size="2">registration under the 1940 Act. Therefore, the certificates
will not be </font><font face="Arial, Helvetica, sans-serif" size="2">subject to applicable investment limitations and other regulation imposed </font><font face="Arial, Helvetica, sans-serif" size="2">by the 1940 Act (although the Fund will remain
subject to such limitations </font><font face="Arial, Helvetica, sans-serif" size="2">and regulation, including with respect to its investments in the certificates). </font><font face="Arial, Helvetica, sans-serif" size="2">Although the trusts are
typically private investment companies, they </font><font face="Arial, Helvetica, sans-serif" size="2">generally are not actively managed such as a "hedge fund" might be. It </font><font face="Arial, Helvetica, sans-serif" size="2">also is expected
that the certificates will be exempt from registration under </font><font face="Arial, Helvetica, sans-serif" size="2">the 1933 Act. Accordingly, there may be no established trading market for
</font><font face="Arial, Helvetica, sans-serif" size="2">the certificates and they may constitute illiquid investments. See "Principal </font><font face="Arial, Helvetica, sans-serif" size="2">Risks of the Fund&#8212;Liquidity Risk." If market
quotations are not readily </font><font face="Arial, Helvetica, sans-serif" size="2">available for the certificates, they will be valued by the Fund at fair value as </font><font face="Arial, Helvetica, sans-serif" size="2">determined by the Board
or persons acting at its direction. See "Net Asset </font><font face="Arial, Helvetica, sans-serif" size="2">Value." The Fund may lose its entire investment in a credit-linked trust
</font><font face="Arial, Helvetica, sans-serif" size="2">certificate. </font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Rule 144A Securities</b></b></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">The Fund may invest in securities that have not been registered for public sale, but that are eligible for purchase and sale pursuant to Rule 144A under the 1933 Act. Rule 144A permits certain qualified
institutional buyers, such as the Fund, to trade in privately placed securities that have not been registered for sale under the 1933 Act. Rule 144A securities may be deemed illiquid, although the Fund may determine that certain Rule 144A securities
are liquid in accordance with procedures adopted by the Board of Trustees.</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Other Investment Companies<br> </b></b></font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2">The Fund may invest in securities of other open- or closed-end investment </font><font face="Arial, Helvetica, sans-serif" size="2">companies, including without limitation ETFs, to the extent
that such </font><font face="Arial, Helvetica, sans-serif" size="2">investments are consistent with the Fund's investment objectives, strategies </font><font face="Arial, Helvetica, sans-serif" size="2">and policies and permissible under the 1940
Act. The Fund may invest in </font><font face="Arial, Helvetica, sans-serif" size="2">other investment companies to gain broad market or sector exposure, </font><font face="Arial, Helvetica, sans-serif" size="2">including during periods when it has
large amounts of uninvested cash </font><font face="Arial, Helvetica, sans-serif" size="2">(such as the period shortly after the Fund receives the proceeds of the </font><font face="Arial, Helvetica, sans-serif" size="2">offering of its Common
Shares) or when PIMCO believes share prices of </font><font face="Arial, Helvetica, sans-serif" size="2">other investment companies offer attractive values. The Fund treats its </font><font face="Arial, Helvetica, sans-serif" size="2">investments in
other investment companies that invest primarily in types of </font><font face="Arial, Helvetica, sans-serif" size="2">securities in which the Fund may invest directly as investments in such types </font><font
face="Arial, Helvetica, sans-serif" size="2">of securities for purposes of the Fund's investment policies (e.g., the Fund's </font><font face="Arial, Helvetica, sans-serif" size="2">investment in an investment company that invests primarily in debt
</font><font face="Arial, Helvetica, sans-serif" size="2">securities will be treated by the Fund as an investment in a debt security). </font><font face="Arial, Helvetica, sans-serif" size="2">As a shareholder in an investment company, the Fund
would bear its </font><font face="Arial, Helvetica, sans-serif" size="2">ratable share of that investment company's expenses and would remain </font><font face="Arial, Helvetica, sans-serif" size="2">subject to payment of the Fund's management fees
and other expenses </font><font face="Arial, Helvetica, sans-serif" size="2">with respect to assets so invested. Common Shareholders would therefore </font><font face="Arial, Helvetica, sans-serif" size="2">be subject to duplicative expenses to the
extent the Fund invests in other </font><font face="Arial, Helvetica, sans-serif" size="2">investment companies. The securities of other investment companies may </font><font face="Arial, Helvetica, sans-serif" size="2">be leveraged, in which case
the NAV and/or market value of the investment </font><font face="Arial, Helvetica, sans-serif" size="2">company's shares will be more volatile than unleveraged investments. See </font><font face="Arial, Helvetica, sans-serif" size="2">"Principal
Risks of the Fund&#8212; Leverage Risk." </font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Common Stocks and Other Equity Securities<br> </b></b></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">The Fund will not normally invest directly in common stocks of operating companies. However, the Fund may own and hold common stocks of operating companies in its portfolio from time to time in connection
with a corporate action, or the restructuring of a debt instrument or through the conversion of a convertible security held by the Fund. For instance, in connection with the restructuring of a debt instrument, either outside of bankruptcy court or
in the context of bankruptcy court proceedings, the Fund may determine or be required to accept common stocks or other equity securities in exchange for all or a portion of the debt instrument. Depending upon, among other things, PIMCO's evaluation
of the potential value of such securities in relation to the price that could be obtained by the Fund at any given time upon sale thereof, the Fund may determine to hold these equity securities in its portfolio.</font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Although common stocks and other equity securities have historically generated higher average returns than debt securities over the long
term, they also have experienced significantly more volatility in those returns and in certain years have significantly underperformed relative to debt securities. An adverse event, such as an unfavorable earnings report, may depress the value of a
particular equity security held by the Fund. Also, prices of common stocks and other equity securities are sensitive to general movements in the equity markets and a decline in those markets may depress the prices of the equity securities held by
the Fund. The prices of equity securities fluctuate for many different reasons, including changes in investors' perceptions of the financial condition of an issuer or the general condition of the relevant stock market or when political or economic
events affecting the issuer occur. In addition, prices of equity securities may be particularly sensitive to rising interest rates, as the cost of capital rises and borrowing costs increase. The Fund may invest in common shares of pooled vehicles,
such as those of other investment companies, and in common shares of REITS.</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Repurchase Agreements<br> </b></b></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund may enter into repurchase agreements, in which the Fund purchases a security from a bank or broker-dealer and the bank or
broker-dealer agrees to repurchase the security at the Fund's cost plus interest within a specified time. If the party agreeing to repurchase should default, the Fund will seek to sell the securities it holds. This could involve transaction costs or
delays in addition to a loss on the securities if their value should fall below their repurchase price. Repurchase agreements maturing in more than seven days are considered to be illiquid securities. See "Principal Risks of the
Fund&#8212;Repurchase Agreements Risk."</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>When-Issued, Delayed
Delivery and Forward Commitment Transactions<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund may purchase securities that it is eligible to
purchase on a when-</font><font face="Arial, Helvetica, sans-serif" size="2">issued basis, may purchase and sell such securities for delayed delivery and </font><font face="Arial, Helvetica, sans-serif" size="2">may make contracts to purchase such
securities for a fixed price at a future </font><font face="Arial, Helvetica, sans-serif" size="2">date beyond normal settlement time (forward commitments). When-issued </font><font face="Arial, Helvetica, sans-serif" size="2">transactions, delayed
delivery purchases and forward commitments involve </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
<table width="100%">
<tr>
<td align="right" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">December 21, 2017 | <b>PROSPECTUS</b></FONT></p> </td>
<td align="right" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">49</FONT></p> </td> </tr> </table><hr style="size:3;color:#999999;width:100%;">
<DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
<tr>
<td align="left" width="29.5%" colspan="3"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
<tr>
<td align="left" width="29.5%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2">a risk of loss if the value of the securities
declines prior to the settlement </font><font face="Arial, Helvetica, sans-serif" size="2">date. The risk is in addition to the risk that the Fund's other assets will </font><font face="Arial, Helvetica, sans-serif" size="2">decline in value.
Therefore, these transactions may result in a form of </font><font face="Arial, Helvetica, sans-serif" size="2">leverage and increase the Fund's overall investment exposure. Typically, no
</font><font face="Arial, Helvetica, sans-serif" size="2">income accrues on securities the Fund has committed to purchase prior to </font><font face="Arial, Helvetica, sans-serif" size="2">the time delivery of the securities is made, although the
Fund may earn </font><font face="Arial, Helvetica, sans-serif" size="2">income on securities it has segregated to cover these positions. When the </font><font face="Arial, Helvetica, sans-serif" size="2">Fund has sold a security on a when-issued,
delayed delivery or forward </font><font face="Arial, Helvetica, sans-serif" size="2">commitment basis, the Fund does not participate in future gains or losses </font><font face="Arial, Helvetica, sans-serif" size="2">with respect to the security.
If the other party to a transaction fails to pay </font><font face="Arial, Helvetica, sans-serif" size="2">for the securities, the Fund could suffer a loss. Additionally, when selling a
</font><font face="Arial, Helvetica, sans-serif" size="2">security on a when-issued, delayed delivery or forward commitment basis </font><font face="Arial, Helvetica, sans-serif" size="2">without owning the security, the Fund will incur a loss if
the security's price </font><font face="Arial, Helvetica, sans-serif" size="2">appreciates in value such that the security's price is above the agreed-upon </font><font face="Arial, Helvetica, sans-serif" size="2">price on the settlement date.
</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Short Sales</b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">A short sale is a transaction in which
the Fund sells a security or other instrument that it does not own in anticipation that the market price will decline. The Fund may use short sales for investment purposes or for hedging and risk management purposes. The Fund may also take short
positions with respect to the performance of securities, indexes, interest rates, currencies and other assets or markets through the use of derivative or forward instruments. When the Fund engages in a short sale of a security, it must borrow the
security sold short and deliver it to the counterparty. The Fund may have to pay a fee to borrow particular securities and would often be obligated to pay over any payments received on such borrowed securities. The Fund's obligation to replace the
borrowed security will be secured by collateral deposited with the Fund's custodian in the name of the lender. The Fund may not receive any payments (including interest) on its collateral. Short sales expose the Fund to the risk that it will be
required to cover its short position at a time when the securities have appreciated in value, thus resulting in a loss to the Fund. The Fund may engage in so-called "naked" short sales when it does not own or have the immediate right to acquire the
security sold short at no additional cost, in which case the Fund's losses theoretically could be unlimited. If the price of the security sold short increases between the time of the short sale and the time that the Fund replaces the borrowed
security, the Fund will incur a loss; conversely, if the price declines, the Fund will realize a gain. Any gain will be decreased, and any loss increased, by the transaction costs described above. The successful use of short selling may be adversely
affected by imperfect correlation between movements in the price of the security sold short and securities being hedged if the short sale is being used for hedging purposes. See "&#8212;Derivatives" and "Principal Risks of the Fund&#8212;Short Sales
Risk." See also "Principal Risks of the Fund&#8212;Leverage Risk" and "Principal Risks of the Fund&#8212;Segregation and Coverage Risk." The Fund may engage in short selling to the extent permitted by the 1940 Act and other federal securities
laws.</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Subsidiaries<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">The Fund may execute its strategy by investing through its Subsidiaries. The Fund does not currently intend to sell or transfer all or any portion of its ownership interest in a Subsidiary. The Fund
reserves the right to establish additional Subsidiaries through which the Fund may execute its strategy.</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Lending of Portfolio
Securities<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">For the purpose of achieving income, the Fund may lend its portfolio </font><font
face="Arial, Helvetica, sans-serif" size="2">securities to brokers, dealers or other financial institutions provided a </font><font face="Arial, Helvetica, sans-serif" size="2">number of conditions are satisfied, including that the loan is fully
</font><font face="Arial, Helvetica, sans-serif" size="2">collateralized. See "Investment Objectives and Policies&#8212;Loans of Portfolio </font><font face="Arial, Helvetica, sans-serif" size="2">Securities" in the Statement of Additional
Information for details. When the </font><font face="Arial, Helvetica, sans-serif" size="2">Fund lends portfolio securities, its investment performance will continue to </font><font face="Arial, Helvetica, sans-serif" size="2">reflect changes in the
value of the securities loaned. The Fund will also </font><font face="Arial, Helvetica, sans-serif" size="2">receive a fee or interest on the collateral. Securities lending involves the risk
</font><font face="Arial, Helvetica, sans-serif" size="2">of loss of rights in the collateral or delay in recovery of the collateral if the </font><font face="Arial, Helvetica, sans-serif" size="2">borrower fails to return the security loaned or
becomes insolvent, or the risk </font><font face="Arial, Helvetica, sans-serif" size="2">of loss due to the investment performance of the collateral. The Fund may </font><font face="Arial, Helvetica, sans-serif" size="2">pay lending fees to the
party arranging the loan. See "Principal Risks of the </font><font face="Arial, Helvetica, sans-serif" size="2">Fund&#8212;Securities Lending Risk." </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p>
<p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Portfolio Turnover</b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The length of time the Fund has held a
particular security is not generally a consideration in investment decisions. A change in the securities held by the Fund is known as "portfolio turnover." The Fund may engage in frequent and active trading of portfolio securities to achieve its
investment objectives, particularly during periods of volatile market movements. High portfolio turnover (e.g., over 100%) generally involves correspondingly greater expenses to the Fund, including brokerage commissions or dealer mark-ups and other
transaction costs on the sale of securities and reinvestments in other securities. Sales of portfolio securities may also result in realization of taxable capital gains, including short-term capital gains (which are generally treated as ordinary
income upon distribution in the form of dividends). The trading costs and tax effects associated with portfolio turnover may adversely affect the Fund's performance.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"><i>Please see "Investment Objectives and Policies" in the Statement of Additional Information for additional information regarding the investments of the Fund and their related risks.</i></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p><a name="chapter_10_4636"></A><a name="chapter_10-sect1_1_4636"></A><p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b>Use of
Leverage</b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund may obtain leverage through reverse repurchase agreements, dollar rolls or borrowings, such as through bank loans or commercial paper 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, credit default swaps, futures and forward contracts (including foreign currency exchange contracts), total
return swaps and other derivative transactions, loans of portfolio securities, short sales and when-issued, delayed delivery and forward commitment transactions. Although it has no current intention to do so, the Fund may also determine to issue
preferred shares or other types of senior securities to add leverage to its portfolio.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Under normal market conditions,
the Fund will limit its use of leverage from </font><font face="Arial, Helvetica, sans-serif" size="2">any combination of (i) reverse repurchase agreements or dollar roll </font><font face="Arial, Helvetica, sans-serif" size="2">transactions
(whether or not these instruments are covered as discussed </font><font face="Arial, Helvetica, sans-serif" size="2">below), (ii), borrowings (i.e., loans or lines of credit from banks or other
</font><font face="Arial, Helvetica, sans-serif" size="2">credit facilities), (iii) any future issuance of preferred shares, and (iv) to the </font><font face="Arial, Helvetica, sans-serif" size="2">extent described below, credit default swaps,
other swap agreements and </font><font face="Arial, Helvetica, sans-serif" size="2">futures contracts (whether or not these instruments are covered with </font><font face="Arial, Helvetica, sans-serif" size="2">segregated assets as discussed below)
such that the assets attributable to </font><font face="Arial, Helvetica, sans-serif" size="2">the use of such leverage will not exceed 50% of the Fund's total assets </font><font face="Arial, Helvetica, sans-serif" size="2">(including, for purposes
of the 50% limit, the amounts of leverage obtained </font><font face="Arial, Helvetica, sans-serif" size="2">through the use of such instruments) (the "50% policy"). For these </font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
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<td align="left" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">50 &#160;&#160;&#160;&#160; </FONT></p> </td>
<td align="left" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><b>PROSPECTUS</b> | PIMCO Dynamic Income Fund &#160;&#160;&#160;&#160; </FONT></p> </td> </tr>
</table><hr style="size:3;color:#999999;width:100%;"> <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;
</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
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<td align="right" width="29.5%" colspan="3"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
<tr>
<td align="right" width="29.5%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2">purposes, assets attributable to the use of
leverage from credit default </font><font face="Arial, Helvetica, sans-serif" size="2">swaps, other swap agreements and futures contracts will be determined </font><font face="Arial, Helvetica, sans-serif" size="2">based on the current market value
of the instrument if it is cash settled or </font><font face="Arial, Helvetica, sans-serif" size="2">based on the notional value of the instrument if it is not cash settled. In </font><font face="Arial, Helvetica, sans-serif" size="2">addition,
assets attributable to credit default swaps, other swap agreements </font><font face="Arial, Helvetica, sans-serif" size="2">or futures contracts will not be counted towards the 50% policy to the </font><font
face="Arial, Helvetica, sans-serif" size="2">extent that the Fund owns offsetting positions or enters into offsetting </font><font face="Arial, Helvetica, sans-serif" size="2">transactions. </font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">Depending upon market conditions and other factors, the Fund may or may not determine to add leverage following an offering to maintain or increase the total amount of leverage (as a percentage of the
Fund's total assets) that the Fund currently maintains, taking into account the additional assets raised through the issuance of Common Shares in such offering. The Fund utilizes certain kinds of leverage, such as reverse repurchase agreements and
credit default swaps, opportunistically and may choose to increase or decrease, or eliminate entirely, its use of such 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. If the Fund determines to add leverage following an offering, it is not possible to predict with accuracy the precise amount of leverage that would be added, in part because it is not possible to predict the number of
Common Shares that ultimately will be sold in an offering or series of offerings. To the extent that the Fund does not add additional leverage following an offering, the Fund's total amount of leverage as a percentage of its total assets will
decrease, which could result in a reduction of investment income available for distribution to Common Shareholders.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2">The net proceeds the Fund obtains from reverse repurchase agreements or other forms of leverage utilized, if any, will be invested in accordance with the Fund's investment objectives and policies
as described in this prospectus and any prospectus supplement. So long as the rate of return, net of applicable Fund expenses, on the debt obligations and other investments purchased by the Fund exceeds the costs to the Fund of the leverage it
utilizes, the investment of the Fund's net 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.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The 1940 Act generally prohibits the Fund from engaging in
most forms of </font><font face="Arial, Helvetica, sans-serif" size="2">leverage representing indebtedness other than preferred shares (including </font><font face="Arial, Helvetica, sans-serif" size="2">the use of reverse repurchase agreements,
dollar rolls, bank loans, </font><font face="Arial, Helvetica, sans-serif" size="2">commercial paper or other credit facilities, credit default swaps, total return </font><font face="Arial, Helvetica, sans-serif" size="2">swaps and other derivative
transactions, loans of portfolio securities, short </font><font face="Arial, Helvetica, sans-serif" size="2">sales and when-issued, delayed delivery and forward commitment </font><font face="Arial, Helvetica, sans-serif" size="2">transactions, to
the extent that these instruments are not covered as </font><font face="Arial, Helvetica, sans-serif" size="2">described below) unless immediately after the issuance of the leverage the </font><font face="Arial, Helvetica, sans-serif" size="2">Fund
has satisfied the asset coverage test with respect to senior securities </font><font face="Arial, Helvetica, sans-serif" size="2">representing indebtedness prescribed by the 1940 Act; that is, the value of </font><font
face="Arial, Helvetica, sans-serif" size="2">the Fund's total assets less all liabilities and indebtedness not represented </font><font face="Arial, Helvetica, sans-serif" size="2">by senior securities (for these purposes, "total net assets") is at
least 300% </font><font face="Arial, Helvetica, sans-serif" size="2">of the senior securities representing indebtedness (effectively limiting the </font><font face="Arial, Helvetica, sans-serif" size="2">use of leverage through senior securities
representing indebtedness to 33 </font><font face="Arial, Helvetica, sans-serif" size="2">1/3% of the Fund's total net assets, including assets attributable to such </font><font face="Arial, Helvetica, sans-serif" size="2">leverage). In addition,
the Fund is not permitted to declare any cash </font><font face="Arial, Helvetica, sans-serif" size="2">dividend or other distribution on its Common Shares unless, at the time of </font><font face="Arial, Helvetica, sans-serif" size="2">such
declaration, this asset coverage test is satisfied. The Fund may (but is </font><font face="Arial, Helvetica, sans-serif" size="2">not required to) cover its commitments under reverse repurchase </font><font
face="Arial, Helvetica, sans-serif" size="2">agreements, dollar rolls, derivatives and certain other instruments by the </font><font face="Arial, Helvetica, sans-serif" size="2">segregation of liquid assets, or by entering into offsetting
transactions or </font><font face="Arial, Helvetica, sans-serif" size="2">owning positions covering its obligations. To the extent that certain of these </font><font face="Arial, Helvetica, sans-serif" size="2">instruments are so covered, they will
not be considered "senior securities" </font><font face="Arial, Helvetica, sans-serif" size="2">under the 1940 Act and therefore will not be subject to the 1940 Act 300% </font><font face="Arial, Helvetica, sans-serif" size="2">asset coverage
requirement otherwise applicable to forms of senior </font><font face="Arial, Helvetica, sans-serif" size="2">securities representing indebtedness used by the Fund. However, reverse
</font><font face="Arial, Helvetica, sans-serif" size="2">repurchase agreements and other such instruments, even if covered, </font><font face="Arial, Helvetica, sans-serif" size="2">represent a form of economic leverage and create special risks.
The use of </font><font face="Arial, Helvetica, sans-serif" size="2">these forms of leverage increases the volatility of the Fund's investment </font><font face="Arial, Helvetica, sans-serif" size="2">portfolio and could result in larger losses to
Common Shareholders than if </font><font face="Arial, Helvetica, sans-serif" size="2">these strategies were not used. See "Principal Risks of the Fund&#8212;Leverage </font><font face="Arial, Helvetica, sans-serif" size="2">Risk." To the extent that
the Fund engages in borrowings, it may prepay a </font><font face="Arial, Helvetica, sans-serif" size="2">portion of the principal amount of the borrowing to the extent necessary in </font><font face="Arial, Helvetica, sans-serif" size="2">order to
maintain the required asset coverage. Failure to maintain certain </font><font face="Arial, Helvetica, sans-serif" size="2">asset coverage requirements could result in an event of default. </font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">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 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 assurance that the Fund's leveraging
strategies will result in a higher yield on your Common Shares. When leverage is used, the NAV and market price of the Common Shares and the yield to Common Shareholders will be more volatile. See "Principal Risks of the Fund&#8212;Leverage Risk."
In addition, dividend, interest and other costs and expenses borne by the Fund with respect to its use of reverse repurchase agreements, credit default swaps, dollar rolls, borrowings or any other forms of leverage are borne by the Common
Shareholders and result in a reduction of the NAV of the Common Shares. In addition, because the fees received by the Investment Manager are based on the Fund's average daily "total managed assets" (including any assets attributable to any reverse
repurchase agreements, dollar rolls, borrowings and preferred shares that may be outstanding) minus accrued liabilities (other than liabilities representing reverse repurchase agreements, dollar rolls and borrowings), the Investment Manager has a
financial incentive for the Fund to use certain forms of leverage (e.g., reverse repurchase agreements, dollar rolls, borrowings and preferred shares), which may create a conflict of interest between the Investment Manager, on the one hand, and the
Common Shareholders, on the other hand.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">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.</font></p>
<p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b>Effects Of Leverage</b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The following table is furnished in response to
requirements of the SEC. It is </font><font face="Arial, Helvetica, sans-serif" size="2">designed to illustrate the effects of leverage through the use of senior </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
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<td align="right" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">December 21, 2017 | <b>PROSPECTUS</b></FONT></p> </td>
<td align="right" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">51</FONT></p> </td> </tr> </table><hr style="size:3;color:#999999;width:100%;">
<DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
<tr>
<td align="left" width="29.5%" colspan="3"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
<tr>
<td align="left" width="29.5%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2">securities, as that term is defined under Section
18 of the 1940 Act, on </font><font face="Arial, Helvetica, sans-serif" size="2">Common Share total return, assuming investment portfolio total returns </font><font face="Arial, Helvetica, sans-serif" size="2">(consisting of income and changes in
the value of investments held in the </font><font face="Arial, Helvetica, sans-serif" size="2">Fund's portfolio) of -10%, -5%, 0%, 5% and 10%. Although the Fund does </font><font face="Arial, Helvetica, sans-serif" size="2">not currently have a
class of senior securities outstanding, the table below </font><font face="Arial, Helvetica, sans-serif" size="2">reflects the Fund's continued use of covered reverse repurchase agreements </font><font face="Arial, Helvetica, sans-serif" size="2">as
of June 30, 2017 representing approximately 45.31% of the Fund's total </font><font face="Arial, Helvetica, sans-serif" size="2">managed assets (including assets attributable to such leverage) at an </font><font
face="Arial, Helvetica, sans-serif" size="2">estimated annual effective interest expense rate of 2.266% payable by the </font><font face="Arial, Helvetica, sans-serif" size="2">Fund on such instruments (based on market conditions as of June 30,
</font><font face="Arial, Helvetica, sans-serif" size="2">2017). Based on such estimated annual effective interest expense rate, the </font><font face="Arial, Helvetica, sans-serif" size="2">annual return that the Fund's portfolio must experience
(net of expenses) in </font><font face="Arial, Helvetica, sans-serif" size="2">order to cover such costs of the reverse repurchase agreements is 1.027%. </font><font face="Arial, Helvetica, sans-serif" size="2">The information below does not reflect
the Fund's use of certain other </font><font face="Arial, Helvetica, sans-serif" size="2">forms of economic leverage achieved through the use of other instruments </font><font face="Arial, Helvetica, sans-serif" size="2">or transactions not
considered to be senior securities under the 1940 Act, </font><font face="Arial, Helvetica, sans-serif" size="2">such as covered credit default swaps or other derivative instruments. The
</font><font face="Arial, Helvetica, sans-serif" size="2">assumed investment portfolio returns in the table below are hypothetical </font><font face="Arial, Helvetica, sans-serif" size="2">figures and are not necessarily indicative of the investment
portfolio returns </font><font face="Arial, Helvetica, sans-serif" size="2">experienced or expected to be experienced by the Fund. Your actual returns </font><font face="Arial, Helvetica, sans-serif" size="2">may be greater or less than those
appearing below. In addition, actual </font><font face="Arial, Helvetica, sans-serif" size="2">borrowing expenses associated with reverse repurchase agreements (or </font><font face="Arial, Helvetica, sans-serif" size="2">dollar rolls or borrowings,
if any) used by the Fund may vary frequently and </font><font face="Arial, Helvetica, sans-serif" size="2">may be significantly higher or lower than the rate used for the example </font><font face="Arial, Helvetica, sans-serif" size="2">below.
</font></p>
<table margin="0" cellspacing="0" cellpadding="0" border="0px" width="100%">
<tr>
<td valign="bottom" align="left" width="45%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Assumed Portfolio Total Return </font></p> </td>
<td valign="bottom" align="left" width="11%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> (10.00)% </font></p> </td>
<td valign="bottom" align="left" width="11%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> (5.00)% </font></p> </td>
<td valign="bottom" align="left" width="11%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 0.00% </font></p> </td>
<td valign="bottom" align="left" width="11%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 5.00% </font></p> </td>
<td valign="bottom" align="left" width="11%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 10.00% </font></p> </td> </tr>
<tr style="background-color:#d6f7fa;">
<td valign="bottom" align="left" width="45%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Common Share Total Return </font></p> </td>
<td valign="bottom" align="left" width="11%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> (20.16)% </font></p> </td>
<td valign="bottom" align="left" width="11%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> (11.02)% </font></p> </td>
<td valign="bottom" align="left" width="11%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> (1.88)% </font></p> </td>
<td valign="bottom" align="left" width="11%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 7.27% </font></p> </td>
<td valign="bottom" align="left" width="11%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 16.41% </font></p> </td> </tr></table> <p><font face="Arial, Helvetica, sans-serif" size="2">Common Share total
return is composed of two elements&#8212;the Common Share dividends paid by the Fund (the amount of which is largely determined by the net investment income of the Fund after paying dividend payments on any preferred shares issued by the Fund and
expenses on any forms of leverage outstanding) and gains or losses on the value of the securities and other instruments the Fund owns. As required by SEC rules, the table assumes that the Fund is more likely to suffer capital losses than to enjoy
capital appreciation. For example, to assume a total return of 0%, the Fund must assume that the income it receives on its investments is entirely offset by losses in the value of those investments. This table reflects hypothetical performance of
the Fund's portfolio and not the actual performance of the Fund's Common Shares, the value of which is determined by market forces and other factors.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">Should the Fund elect to add additional leverage to its portfolio following an offering, any benefits of such additional leverage cannot be fully achieved until the proceeds resulting from the use of such
leverage have been received by the Fund and invested in accordance with the Fund's investment objectives and policies. As noted above, the Fund's willingness to use additional leverage, and the extent to which leverage is used at any time, will
depend on many factors, including, among other things, PIMCO's assessment of the yield curve environment, interest rate trends, market conditions and other
factors.</font></p><a name="chapter_11_4636"></A><a name="chapter_11-sect1_1_4636"></A><p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b>Principal Risks of the Fund<br> </b></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">The Fund is subject to the principal risks noted below, whether through the Fund&#8217;s direct investments, investments by its Subsidiaries or derivatives positions.</font></p>
<p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Market Discount Risk</b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">As with any stock, the price of the Fund's
Common Shares will fluctuate with market conditions and other factors. If you sell your Common Shares, the price received may be more or less than your original investment. Net asset value of the Fund's Common Shares will be reduced immediately
following an offering by any sales load and/or commissions and offering expenses paid or reimbursed by the Fund in connection with such offering. The completion of an offering may result in an immediate dilution of the NAV per Common Share for all
existing Common Shareholders. The Common Shares are designed for long-term investors and should not be treated as trading vehicles. Shares of closed-end management investment companies frequently trade at a discount from their NAV. The Common Shares
may trade at a price that is less than the offering price for Common Shares issued pursuant to an offering. This risk may be greater for investors who sell their Common Shares relatively shortly after completion of an offering.</font></p>
<p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b>Market Risk<br> </b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The market price of securities owned by the Fund may
go up or down, sometimes rapidly or unpredictably. Securities may decline in value due to factors affecting securities markets generally or particular industries 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, changes in interest or currency rates, adverse changes
to credit markets or adverse investor sentiment generally. The value of a security may also decline due to factors that affect a particular industry or industries, such as labor shortages or increased production costs and competitive conditions
within an industry. During a general downturn in the securities markets, multiple asset classes may decline in value simultaneously. Equity securities generally have greater price volatility than fixed income securities. Credit ratings downgrades
may also negatively affect securities held by the Fund. Even when markets perform well, there is no assurance that the investments held by the Fund will increase in value along with the broader market. In addition, market risk includes the risk that
geopolitical events will disrupt the economy on a national or global level. For instance, terrorism, market manipulation, government defaults, government shutdowns, political changes or diplomatic developments, and natural/environmental disasters
can all negatively impact the securities markets, which could cause the Fund to lose value. Any market disruptions could also prevent the Fund from executing advantageous investment decisions in a timely manner. To the extent the Fund focuses its
investments in a region enduring geopolitical market disruption, it will face higher risks of loss. Thus, investors should closely monitor current market conditions to determine whether a specific Fund meets their individual financial needs and
tolerance for risk.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Current market conditions may pose heightened risks with respect to funds </font><font
face="Arial, Helvetica, sans-serif" size="2">that invest in fixed income securities. As discussed more under "&#8212;Interest </font><font face="Arial, Helvetica, sans-serif" size="2">Rate Risk," interest rates in the U.S. are near historically low
levels. </font><font face="Arial, Helvetica, sans-serif" size="2">However, continued economic recovery, the end of the Federal Reserve </font><font face="Arial, Helvetica, sans-serif" size="2">Board's quantitative easing program, and an increased
likelihood of a rising </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
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<tr>
<td align="left" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">52 &#160;&#160;&#160;&#160; </FONT></p> </td>
<td align="left" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><b>PROSPECTUS</b> | PIMCO Dynamic Income Fund &#160;&#160;&#160;&#160; </FONT></p> </td> </tr>
</table><hr style="size:3;color:#999999;width:100%;"> <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;
</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
<tr>
<td align="right" width="29.5%" colspan="3"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
<tr>
<td align="right" width="29.5%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2">interest rate environment increase the risk that
interest rates will continue </font><font face="Arial, Helvetica, sans-serif" size="2">to rise in the near future. Any further interest rate increases in the future </font><font face="Arial, Helvetica, sans-serif" size="2">could cause the value of
the Fund to decrease. As such, fixed income </font><font face="Arial, Helvetica, sans-serif" size="2">securities markets may experience heightened levels of interest rate, </font><font face="Arial, Helvetica, sans-serif" size="2">volatility and
liquidity risk. </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">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.&#160;</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font
face="Arial, Helvetica, sans-serif" size="3"><b><b>Asset Allocation Risk<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">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. PIMCO employs an active approach to allocation among multiple fixed income sectors, but there is no guarantee that such allocation
techniques will produce the desired results. It is possible that PIMCO will focus on an investment that performs poorly or underperforms other investments under various market conditions. You could lose money on your investment in the Fund as a
result of these allocation decisions.</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Management Risk<br> </b></b></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">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, but there can be no guarantee that these decisions will produce the desired results. Certain securities or other instruments in which the Fund seeks to invest may not be available in the quantities desired. In
addition, regulatory restrictions, actual or potential conflicts of interest or other considerations may cause PIMCO to restrict or prohibit participation in certain investments. In such circumstances, PIMCO or the individual portfolio managers may
determine to purchase other securities or instruments as substitutes. Such substitute securities or instruments may not perform as intended, which could result in losses to the Fund. To the extent the Fund employs strategies targeting perceived
pricing inefficiencies, arbitrage strategies or similar strategies, it is subject to the risk that the pricing or valuation of the securities and instruments involved in such strategies may change unexpectedly, which may result in reduced returns or
losses to the Fund. Additionally, legislative, regulatory, or tax restrictions, policies or developments may affect the investment techniques available to PIMCO and each individual portfolio manager in connection with managing the Fund and may also
adversely affect the ability of the Fund to achieve its investment objectives. There also can be no assurance that all of the personnel of PIMCO will continue to be associated with PIMCO for any length of time. The loss of the services of one or
more key employees of PIMCO could have an adverse impact on the Fund's ability to realize its investment objectives.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2">In addition, the Fund may rely on various third-party sources to calculate its </font><font face="Arial, Helvetica, sans-serif" size="2">net asset value. As a result, the Fund is subject to
certain operational risks </font><font face="Arial, Helvetica, sans-serif" size="2">associated with reliance on service providers and service providers' data </font><font face="Arial, Helvetica, sans-serif" size="2">sources. In particular, errors or
systems failures and other technological </font><font face="Arial, Helvetica, sans-serif" size="2">issues may adversely impact the Fund's calculations of its net asset value, </font><font face="Arial, Helvetica, sans-serif" size="2">and such net
asset value calculation issues may result in inaccurately </font><font face="Arial, Helvetica, sans-serif" size="2">calculated net asset values, delays in net asset value calculation and/or the
</font><font face="Arial, Helvetica, sans-serif" size="2">inability to calculate net asset values over extended periods. The Fund may </font><font face="Arial, Helvetica, sans-serif" size="2">be unable to recover any losses associated with such
failures. </font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Issuer Risk<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">The value of a security may decline for a number of reasons that directly relate to the issuer, such as management performance, financial leverage and 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 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.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font
face="Arial, Helvetica, sans-serif" size="3"><b><b>Interest Rate Risk<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Interest rate risk is the risk that fixed income securities and other instruments in the Fund's
portfolio will decline in value because of a change in interest rates. As nominal interest rates rise, the value of certain fixed income securities held by the Fund is likely to decrease. A nominal interest rate can be described as the sum of a real
interest rate and an expected inflation rate. Interest rate changes can be sudden and unpredictable, and the Fund may lose money as a result of movements in interest rates. The Fund may not be able to hedge against changes in interest rates or may
choose not to do so for cost or other reasons. In addition, any hedges may not work as intended.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">A wide variety of
factors can cause interest rates to rise (e.g., central bank monetary policies, inflation rates, general economic conditions). <b>This risk may be particularly acute in the current market environment because market interest rates are currently near
historically low levels.</b> This, combined with recent economic recovery, the Federal Reserve Board's conclusion of its quantitative easing program, and increases in federal funds interest rates in 2015, 2016 and 2017 which had not occurred since
2006, could potentially increase the probability of an upward interest rate environment in the near future. To the extent the Federal Reserve Board continues to raise interest rates, there is a risk that rates across the financial system may
rise.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Fixed income securities with longer durations tend to be more sensitive to changes in interest rates, usually
making them more volatile than securities with shorter durations. 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.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">Variable and floating rate securities generally are less sensitive to interest </font><font face="Arial, Helvetica, sans-serif" size="2">rate changes but may decline in value if their interest rates do
not rise as </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
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<td align="left" width="50%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><br>
<img src="g450385pr4636img005.jpg"><br></FONT></p> </td>
<td align="right" width="46.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">PIMCO Dynamic Income Fund | <b>PROSPECTUS</b></FONT></p> </td>
<td align="right" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">53</FONT></p> </td> </tr> </table><hr style="size:3;color:#999999;width:100%;">
<DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
<tr>
<td align="left" width="29.5%" colspan="3"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
<tr>
<td align="left" width="29.5%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2">much, or as quickly, as interest rates in general.
Conversely, floating rate </font><font face="Arial, Helvetica, sans-serif" size="2">securities will not generally increase in value if interest rates decline. Inverse </font><font face="Arial, Helvetica, sans-serif" size="2">floating rate securities
may decrease in value if interest rates increase. </font><font face="Arial, Helvetica, sans-serif" size="2">Inverse floating rate securities may also exhibit greater price volatility than a
</font><font face="Arial, Helvetica, sans-serif" size="2">fixed rate obligation with similar credit quality. When the Fund holds </font><font face="Arial, Helvetica, sans-serif" size="2">variable or floating rate securities, a decrease (or, in the
case of inverse </font><font face="Arial, Helvetica, sans-serif" size="2">floating rate securities, an increase) in market interest rates will adversely </font><font face="Arial, Helvetica, sans-serif" size="2">affect the income received from such
securities and the NAV of the Fund's </font><font face="Arial, Helvetica, sans-serif" size="2">shares. </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">During periods of very low or negative interest rates, the Fund may be unable to
maintain positive returns. Interest rates in the United States and many parts of the world, including certain European countries, are at or near historically low levels. Certain European countries have recently experienced negative interest rates on
certain fixed income instruments. 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.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Measures
such as average duration may not accurately reflect the true interest rate sensitivity of the Fund. This is especially the case if the Fund consists of securities with widely varying durations. Therefore, if the Fund has an average duration that
suggests a certain level of interest rate risk, the Fund may in fact be subject to greater interest rate risk than the average would suggest. This risk is greater to the extent the Fund uses leverage or derivatives in connection with the management
of the Fund.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">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, meaning increased sensitivity in prices in response to rising 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.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Rising interest rates may result in a decline in value of the
Fund's fixed income investments and in periods of volatility. Further, while U.S. bond markets have steadily grown over the past three decades, dealer "market making" ability has remained relatively stagnant. As a result, dealer inventories of
certain types of bonds and similar instruments, which provide a core indication of the ability of financial intermediaries to "make markets," are at or near historic lows in relation to market size. Because market makers provide stability to a
market through their intermediary services, the significant reduction in dealer inventories could potentially lead to decreased liquidity and increased volatility in the fixed income markets. Such issues may be exacerbated during periods of economic
uncertainty. All of these factors, collectively and/or individually, could cause the Fund to lose value.</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Credit
Risk</b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund could lose money if the issuer or guarantor of a debt security (including a security purchased
with securities lending collateral), or the counterparty to a derivatives contract, 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 downgrade of the credit of a security held by the Fund may decrease its value. Securities are subject to varying degrees
of credit risk, which are often reflected in credit ratings. 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 holds securities with widely varying credit
ratings. Therefore, if the Fund has an average credit rating that suggests a certain credit quality, the Fund may in fact be subject to greater credit risk than the average would suggest. This risk is greater to the extent the Fund uses leverage or
derivatives in connection with the management of the Fund. Municipal bonds are subject to the risk that litigation, legislation or other political events, local business or economic conditions, or the bankruptcy of the issuer could have a
significant effect on an issuer's ability to make payments of principal and/or interest.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font
face="Arial, Helvetica, sans-serif" size="3"><b><b>Mortgage-Related and Other Asset-backed Securities Risk</b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund may invest in a variety of mortgage-related and other
asset-backed securities issued by government agencies or other governmental entities or by private originators or issuers.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">The mortgage-related securities in which the Fund may invest include, without limitation, mortgage pass-through securities, collateralized mortgage obligations ("CMOs"), commercial or residential
mortgage-backed securities, mortgage dollar rolls, CMO residuals, stripped mortgage-backed securities ("SMBSs") and other securities that&#160;directly or indirectly represent a participation in, or are secured by and payable from, mortgage loans on
real property. The Fund may also invest in other types of asset-backed securities, including collateralized debt obligations ("CDOs"), which include collateralized bond obligations ("CBOs"), collateralized loan obligations ("CLOs") and other
similarly structured securities. See "Portfolio Contents&#8211;&#8211;Mortgage-Related and Other Asset- Backed Securities" in this prospectus and "Investment Objectives and Policies&#8211;&#8211;Mortgage-Related and Other Asset-Backed Securities" in
the Statement of Additional Information for a description of the various mortgage-related and other asset-backed securities in which the Fund may invest and their related risks.</font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Mortgage-related and other asset-backed securities represent interests in
</font><font face="Arial, Helvetica, sans-serif" size="2">"pools" of mortgages or other assets such as consumer loans or receivables </font><font face="Arial, Helvetica, sans-serif" size="2">held in trust and often involve risks that are different
from or possibly more </font><font face="Arial, Helvetica, sans-serif" size="2">acute than risks associated with other types of debt instruments. Generally, </font><font face="Arial, Helvetica, sans-serif" size="2">rising interest rates tend to
extend the duration of fixed rate mortgage-</font><font face="Arial, Helvetica, sans-serif" size="2">related securities, making them more sensitive to changes in interest rates. </font><font face="Arial, Helvetica, sans-serif" size="2">As a result,
in a period of rising interest rates, the Fund may exhibit </font><font face="Arial, Helvetica, sans-serif" size="2">additional volatility since individual mortgage holders are less likely to
</font><font face="Arial, Helvetica, sans-serif" size="2">exercise prepayment options, thereby putting additional downward </font><font face="Arial, Helvetica, sans-serif" size="2">pressure on the value of these securities and potentially causing
the Fund to </font><font face="Arial, Helvetica, sans-serif" size="2">lose money. This is known as extension risk. Mortgage-backed securities </font><font face="Arial, Helvetica, sans-serif" size="2">can be highly sensitive to rising interest rates,
such that even small </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
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<td align="left" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">54 &#160;&#160;&#160;&#160; </FONT></p> </td>
<td align="left" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><b>PROSPECTUS</b> | PIMCO Dynamic Income Fund &#160;&#160;&#160;&#160; </FONT></p> </td> </tr>
</table><hr style="size:3;color:#999999;width:100%;"> <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;
</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
<tr>
<td align="right" width="29.5%" colspan="3"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
<tr>
<td align="right" width="29.5%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2">movements can cause the Fund to lose value.
Mortgage-backed securities, </font><font face="Arial, Helvetica, sans-serif" size="2">and in particular those not backed by a government guarantee, are subject </font><font face="Arial, Helvetica, sans-serif" size="2">to credit risk. When interest
rates decline, borrowers may pay off their </font><font face="Arial, Helvetica, sans-serif" size="2">mortgages sooner than expected. This can reduce the returns of the Fund </font><font face="Arial, Helvetica, sans-serif" size="2">because the Fund
may have to reinvest that money at the lower prevailing </font><font face="Arial, Helvetica, sans-serif" size="2">interest rates. The Fund's investments in other asset-backed securities are
</font><font face="Arial, Helvetica, sans-serif" size="2">subject to risks similar to those associated with mortgage-related securities, </font><font face="Arial, Helvetica, sans-serif" size="2">as well as additional risks associated with the nature
of the assets and the </font><font face="Arial, Helvetica, sans-serif" size="2">servicing of those assets. Payment of principal and interest on asset-backed </font><font face="Arial, Helvetica, sans-serif" size="2">securities may be largely
dependent upon the cash flows generated by the </font><font face="Arial, Helvetica, sans-serif" size="2">assets backing the securities, and asset-backed securities may not have the </font><font face="Arial, Helvetica, sans-serif" size="2">benefit of
any security interest in the related assets. See "Principal Risks of </font><font face="Arial, Helvetica, sans-serif" size="2">the Fund&#8212;Mortgage Market/Subprime Risk." </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund
may also invest in the residual or equity tranches of mortgage-related and other asset-backed securities, which may be referred to as subordinate mortgage-backed or asset-backed securities and interest-only mortgage-backed or asset-backed
securities. Subordinate mortgage-backed or asset-backed securities 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 payment on subordinate mortgage-backed or asset-backed securities will not be fully paid. There are multiple tranches of mortgage-backed and asset-backed securities, offering investors various maturity and credit risk
characteristics. Tranches are categorized as senior, mezzanine, and subordinated/equity or "first loss," according to their degree of risk. The most senior tranche of a mortgage-backed or asset-backed security has the greatest collateralization and
pays the lowest interest rate. If there are defaults or the collateral otherwise underperforms, scheduled payments to senior tranches 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) 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 expects that investments in subordinate mortgage-backed and other asset-backed securities 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 securities are also subject to greater credit risk than those mortgage-backed or other asset-backed securities that are more highly
rated.</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Privately-Issued Mortgage-Related Securities Risk<br> </b></b></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">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
underwriting requirements for the underlying mortgages that are applicable to those mortgage-related securities that have a government or government-sponsored entity guarantee.</font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">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.</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Mortgage Market/Subprime Risk<br>
</b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">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 residential and commercial mortgage loans (especially subprime and second-lien
mortgage loans) generally increased during that period and may increase again, and a decline in or flattening of housing and other real property values (as has been experienced during that period and may continue to be experienced in many real
estate markets) may exacerbate such delinquencies and losses. Borrowers with adjustable rate mortgage loans are more sensitive to changes in interest rates, which affect their monthly mortgage payments, and may be unable to secure replacement
mortgages at comparably low interest rates. Also, a number of mortgage loan originators have experienced serious financial difficulties or bankruptcy in recent periods. Owing largely to the foregoing, reduced investor demand for mortgage loans and
mortgage-related securities and increased investor yield requirements have caused limited liquidity in the secondary market for mortgage-related securities, which can adversely affect the market value of mortgage-related securities. It is possible
that such limited liquidity in such secondary markets could continue or worsen.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font
face="Arial, Helvetica, sans-serif" size="3"><b><b>High Yield Securities Risk<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">In general, lower rated debt securities carry a greater degree of risk that the </font><font
face="Arial, Helvetica, sans-serif" size="2">issuer will lose its ability to make interest and principal payments, which </font><font face="Arial, Helvetica, sans-serif" size="2">could have a negative effect on the NAV of the Fund's Common Shares or
</font><font face="Arial, Helvetica, sans-serif" size="2">Common Share dividends. Securities of below investment grade quality are </font><font face="Arial, Helvetica, sans-serif" size="2">regarded as having predominantly speculative characteristics
with respect </font><font face="Arial, Helvetica, sans-serif" size="2">to capacity to pay interest and repay principal, and are commonly referred </font><font face="Arial, Helvetica, sans-serif" size="2">to as "high yield" securities or "junk
bonds." High yield securities involve a </font><font face="Arial, Helvetica, sans-serif" size="2">greater risk of default and their prices are generally more volatile and </font><font face="Arial, Helvetica, sans-serif" size="2">sensitive to actual
or perceived negative developments, such as a decline in </font><font face="Arial, Helvetica, sans-serif" size="2">the issuer's revenues or revenues of underlying borrowers or a general
</font><font face="Arial, Helvetica, sans-serif" size="2">economic downturn, than are the prices of higher grade securities. Debt </font><font face="Arial, Helvetica, sans-serif" size="2">securities in the lowest investment grade category also may
be considered </font><font face="Arial, Helvetica, sans-serif" size="2">to possess some speculative characteristics by certain rating agencies. The </font><font face="Arial, Helvetica, sans-serif" size="2">Fund may purchase distressed securities
that are in default or the issuers of </font><font face="Arial, Helvetica, sans-serif" size="2">which are in bankruptcy, which involve heightened risks. See "Principal </font><font face="Arial, Helvetica, sans-serif" size="2">Risks of the
Fund&#8212;Distressed and Defaulted Securities Risk." An economic </font><font face="Arial, Helvetica, sans-serif" size="2">downturn could severely affect the ability of issuers (particularly those that </font><font
face="Arial, Helvetica, sans-serif" size="2">are highly leveraged) to service their debt obligations or to repay their </font><font face="Arial, Helvetica, sans-serif" size="2">obligations upon maturity. Lower-rated securities are generally less
liquid </font><font face="Arial, Helvetica, sans-serif" size="2">than higher-rated securities, which may have an adverse effect on the </font><font face="Arial, Helvetica, sans-serif" size="2">Fund's ability to dispose of a particular security. For
example, under adverse </font><font face="Arial, Helvetica, sans-serif" size="2">market or economic conditions, the secondary market for below investment </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
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<td align="right" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">December 21, 2017 | <b>PROSPECTUS</b></FONT></p> </td>
<td align="right" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">55</FONT></p> </td> </tr> </table><hr style="size:3;color:#999999;width:100%;">
<DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
<tr>
<td align="left" width="29.5%" colspan="3"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
<tr>
<td align="left" width="29.5%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2">grade securities could contract further,
independent of any specific adverse </font><font face="Arial, Helvetica, sans-serif" size="2">changes in the condition of a particular issuer, and certain securities in the </font><font face="Arial, Helvetica, sans-serif" size="2">Fund's portfolio
may become illiquid or less liquid. As a result, the Fund </font><font face="Arial, Helvetica, sans-serif" size="2">could find it more difficult to sell these securities or may be able to sell
</font><font face="Arial, Helvetica, sans-serif" size="2">these securities only at prices lower than if such securities were widely </font><font face="Arial, Helvetica, sans-serif" size="2">traded. See "Principal Risks of the Fund&#8212;Liquidity
Risk." To the extent the </font><font face="Arial, Helvetica, sans-serif" size="2">Fund focuses on below investment grade debt obligations, PIMCO's </font><font face="Arial, Helvetica, sans-serif" size="2">capabilities in analyzing credit quality
and associated risks will be </font><font face="Arial, Helvetica, sans-serif" size="2">particularly important, and there can be no assurance that PIMCO will be </font><font face="Arial, Helvetica, sans-serif" size="2">successful in this regard. See
"Portfolio Contents&#8212;High Yield Securities" for </font><font face="Arial, Helvetica, sans-serif" size="2">additional information. Due to the risks involved in investing in high yield
</font><font face="Arial, Helvetica, sans-serif" size="2">securities, an investment in the Fund should be considered speculative. </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund's credit quality policies apply only at the
time a security is purchased, and the Fund is not required to dispose of a security in the event that a rating agency or PIMCO downgrades its assessment of the credit characteristics of a particular issue. In determining whether to retain or sell
such a security, PIMCO may consider factors including, but not limited to, PIMCO's assessment of the credit quality of the issuer of such security, the price at which such security could be sold and the rating, if any, assigned to such security by
other rating agencies. Analysis of creditworthiness may be more complex for issuers of high yield securities than for issuers of higher quality debt securities.</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font
face="Arial, Helvetica, sans-serif" size="3"><b><b>Distressed and Defaulted Securities Risk</b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">As noted above, the Fund may invest in the debt securities of financially distressed
issuers, including those that are in default or the issuers of which are in bankruptcy. Investments in the securities of financially distressed issuers involve substantial risks. These securities may present a substantial risk of default or may be
in default at the time of investment. In addition, these securities may fluctuate more in price, and are typically less liquid than other higher-rated debt securities. 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 (e.g., through a liquidation of the issuer's assets, an exchange offer or plan of reorganization, or a payment of some
amount in satisfaction of the obligation). 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 illiquid, 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.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">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.</font></p>
<p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Municipal Bond Risk</b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">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 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.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">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. Laws, referenda, ordinances or regulations enacted in the future by Congress or state legislatures or the applicable governmental entity could extend the time for payment of principal and/or interest, or impose other constraints on
enforcement of such obligations, or on the ability of municipal issuers to levy taxes. Issuers of municipal securities also might seek protection under the bankruptcy laws. In the event of bankruptcy of such an issuer, the Fund could experience
delays in collecting principal and interest and the Fund may not, in all circumstances, be able to collect all principal and interest to which it is entitled. To enforce its rights in the event of a default in the payment of interest or repayment of
principal, or both, the Fund may take possession of and manage the assets securing the issuer's obligations on such securities, which may increase the Fund's operating expenses. The treatment of municipalities in bankruptcy is more uncertain, and
potentially more adverse to debt holders, than for corporate issues.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">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, there is no guarantee that the particular project will
generate enough revenue to pay its obligations, in which case the Fund's performance may be adversely affected.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The
Fund may invest in taxable municipal bonds, such as Build America </font><font face="Arial, Helvetica, sans-serif" size="2">Bonds. Build America Bonds are tax credit bonds created by the American </font><font
face="Arial, Helvetica, sans-serif" size="2">Recovery and Reinvestment Act of 2009, which authorized state and local </font><font face="Arial, Helvetica, sans-serif" size="2">governments to issue Build America Bonds as taxable bonds in 2009 and
</font><font face="Arial, Helvetica, sans-serif" size="2">2010, without volume limitations, to finance any capital expenditures for </font><font face="Arial, Helvetica, sans-serif" size="2">which such issuers could otherwise issue traditional
tax-exempt bonds. </font><font face="Arial, Helvetica, sans-serif" size="2">State and local governments may receive a direct federal subsidy payment </font><font face="Arial, Helvetica, sans-serif" size="2">for a portion of their borrowing costs on
Build America Bonds equal to 35% </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
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<td align="left" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">56 &#160;&#160;&#160;&#160; </FONT></p> </td>
<td align="left" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><b>PROSPECTUS</b> | PIMCO Dynamic Income Fund &#160;&#160;&#160;&#160; </FONT></p> </td> </tr>
</table><hr style="size:3;color:#999999;width:100%;"> <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;
</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
<tr>
<td align="right" width="29.5%" colspan="3"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
<tr>
<td align="right" width="29.5%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2">of the total coupon interest paid to investors
(or 45% in the case of </font><font face="Arial, Helvetica, sans-serif" size="2">Recovery Zone Economic Development Bonds). The state or local </font><font face="Arial, Helvetica, sans-serif" size="2">government issuer can elect to either take the
federal subsidy or pass the </font><font face="Arial, Helvetica, sans-serif" size="2">35% tax credit along to bondholders. The Fund's investments in Build </font><font face="Arial, Helvetica, sans-serif" size="2">America Bonds or similar taxable
municipal bonds will result in taxable </font><font face="Arial, Helvetica, sans-serif" size="2">income and the Fund may elect to pass through to Common Shareholders </font><font face="Arial, Helvetica, sans-serif" size="2">the corresponding tax
credits. The tax credits can generally be used to offset </font><font face="Arial, Helvetica, sans-serif" size="2">federal income taxes and the alternative minimum tax, but such credits are
</font><font face="Arial, Helvetica, sans-serif" size="2">generally not refundable. Build America Bonds or similar taxable municipal </font><font face="Arial, Helvetica, sans-serif" size="2">bonds involve similar risks as tax-exempt municipal bonds,
including credit </font><font face="Arial, Helvetica, sans-serif" size="2">and market risk. </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Build America Bond program expired on December 31, 2010, at which point no further
issuance of new Build America Bonds was permitted. As of the date of this prospectus, there is no indication that Congress will renew the program to permit issuance of new Build America Bonds. See "Principal Risks of the Fund&#8212;Credit Risk" and
"Principal Risks of the Fund&#8212;Market Risk."</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Inflation-Indexed Security Risk</b></b></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">Inflation-indexed debt securities are subject to the effects of changes in market interest rates caused by factors other than inflation (real interest rates). In general, the value of an inflation-indexed
security, including TIPS, tends to decrease when real interest rates increase and can increase when real interest rates decrease. Thus generally, during periods of rising inflation, the value of inflation-indexed securities will tend to increase and
during periods of deflation, their value will tend to decrease. Interest payments on inflation-indexed securities are unpredictable and will fluctuate as the principal and interest are adjusted for inflation. There can be no assurance that the
inflation index used (i.e., the CPI) will accurately measure the real rate of inflation in the prices of goods and services. Increases in the principal value of TIPS due to inflation are considered taxable ordinary income for the amount of the
increase in the calendar year. Any increase in the principal amount of an inflation-indexed debt security will be considered taxable ordinary income, even though the Fund will not receive the principal until maturity. Additionally, a CPI swap can
potentially lose value if the realized rate of inflation over the life of the swap is less than the fixed market implied inflation rate (fixed breakeven rate) that the investor agrees to pay at the initiation of the swap. With municipal
inflation-indexed securities, the inflation adjustment is integrated into the coupon payment, which is federally tax exempt (and may be state tax exempt). For municipal inflation-indexed securities, there is no adjustment to the principal value.
Because municipal inflation-indexed securities are a small component of the municipal bond market, they may be less liquid than conventional municipal bonds.</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font
face="Arial, Helvetica, sans-serif" size="3"><b><b>Senior Debt Risk</b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Because it may invest in below-investment
grade senior debt, the Fund may </font><font face="Arial, Helvetica, sans-serif" size="2">be subject to greater levels of credit risk than funds that do not invest in </font><font face="Arial, Helvetica, sans-serif" size="2">such debt. The Fund may
also be subject to greater levels of liquidity risk </font><font face="Arial, Helvetica, sans-serif" size="2">than funds that do not invest in senior debt. Restrictions on transfers in loan
</font><font face="Arial, Helvetica, sans-serif" size="2">agreements, a lack of publicly available information and other factors may, </font><font face="Arial, Helvetica, sans-serif" size="2">in certain instances, make senior debt more difficult to
sell at an </font><font face="Arial, Helvetica, sans-serif" size="2">advantageous time or price than other types of securities or instruments. </font><font face="Arial, Helvetica, sans-serif" size="2">Additionally, if the issuer of senior debt
prepays, the Fund will have to </font><font face="Arial, Helvetica, sans-serif" size="2">consider reinvesting the proceeds in other senior debt or similar instruments </font><font face="Arial, Helvetica, sans-serif" size="2">that may pay lower
interest rates. </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Loans and Other Indebtedness; Loan
Participations and Assignments Risk</b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Loan interests may take the form of direct interests acquired during a primary distribution and may also take the form of assignments of,
novations of or participations in 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 corporate borrower for payment of principal and interest. 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 offer the Fund more protection than an unsecured loan in the event of non-payment of scheduled interest or principal. However, there is no assurance that the liquidation of collateral
from a secured loan would satisfy the corporate borrower's obligation, or that the collateral can be liquidated.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2">Investments in loans through a purchase of a loan 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 part owner of any collateral, and would bear the costs and liabilities associated with owning and disposing of the collateral. In addition, it is conceivable that under emerging legal theories of lender
liability, the Fund could be held liable as co-lender. It is unclear whether loans and other forms of direct indebtedness offer securities law protections against fraud and misrepresentation. In the absence of definitive regulatory guidance, the
Fund will rely on PIMCO's research in an attempt to avoid situations where fraud or misrepresentation could adversely affect the Fund. 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 purchaser of an
assignment may differ from, and be more limited than, those held by the assigning lender. 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 may 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 with respect to the participation, 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.</font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
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<td align="right" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">December 21, 2017 | <b>PROSPECTUS</b></FONT></p> </td>
<td align="right" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">57</FONT></p> </td> </tr> </table><hr style="size:3;color:#999999;width:100%;">
<DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
<tr>
<td align="left" width="29.5%" colspan="3"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
<tr>
<td align="left" width="29.5%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund may have difficulty disposing of loans
and loan participations because to do so it will have to assign or sell such securities to a third party. Because there is no liquid market for many such securities, the Fund anticipates that such securities 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 securities 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.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">To the extent the Fund invests in loans, including bank
loans, the Fund may be subject to greater levels of credit risk, call risk, settlement risk and liquidity risk than funds that do not invest in such securities. 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. 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 proceeds from a sale of a loan for an extended period after such sale, each of which could result in losses to the Fund. Some loans may have extended trade settlement periods, including settlement periods of greater than 7 days, which
may result in cash not being immediately available to the Fund. If an issuer of a loan prepays or redeems the loan prior to maturity, the Fund may have to reinvest the proceeds in other loans or similar instruments that may pay lower interest rates.
Because of the risks involved in investing in loans, an investment in the Fund should be considered speculative.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The
Fund's investments in subordinated and unsecured loans generally are </font><font face="Arial, Helvetica, sans-serif" size="2">subject to similar risks as those associated with investments in secured </font><font
face="Arial, Helvetica, sans-serif" size="2">loans. Subordinated or unsecured loans are lower in priority of payment to </font><font face="Arial, Helvetica, sans-serif" size="2">secured loans and are subject to the additional risk that the cash flow
of </font><font face="Arial, Helvetica, sans-serif" size="2">the borrower and property securing the loan or debt, if any, may be </font><font face="Arial, Helvetica, sans-serif" size="2">insufficient to meet scheduled payments after giving effect to
the senior </font><font face="Arial, Helvetica, sans-serif" size="2">secured obligations of the borrower. This risk is generally higher for </font><font face="Arial, Helvetica, sans-serif" size="2">subordinated unsecured loans or debt, which are not
backed by a security </font><font face="Arial, Helvetica, sans-serif" size="2">interest in any specific collateral. Subordinated and unsecured loans </font><font face="Arial, Helvetica, sans-serif" size="2">generally have greater price volatility
than secured loans and may be less </font><font face="Arial, Helvetica, sans-serif" size="2">liquid. There is also a possibility that originators will not be able to sell </font><font face="Arial, Helvetica, sans-serif" size="2">participations in
subordinated or unsecured loans, which would create </font><font face="Arial, Helvetica, sans-serif" size="2">greater credit risk exposure for the holders of such loans. Subordinate and
</font><font face="Arial, Helvetica, sans-serif" size="2">unsecured loans share the same risks as other below investment grade </font><font face="Arial, Helvetica, sans-serif" size="2">securities. </font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">There may be less readily available information about most loans and the underlying borrowers than is the case for many other types of
securities, including securities issued in transactions registered under the 1933 Act, or registered under the Exchange Act, and borrowers subject to the periodic reporting requirements of Section 13 of the Exchange Act. Loans may be issued by
companies 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 companies 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.</font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">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 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. See "Principal Risks of the Fund&#8212;Derivatives Risk."</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font
face="Arial, Helvetica, sans-serif" size="3"><b><b>Reinvestment Risk<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">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.</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Call&#160;Risk</b></b></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">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 and may be forced to reinvest in lower-yielding securities, securities with greater credit risks or securities with other, less favorable features.</font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
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<td align="left" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><b>PROSPECTUS</b> | PIMCO Dynamic Income Fund &#160;&#160;&#160;&#160; </FONT></p> </td> </tr>
</table><hr style="size:3;color:#999999;width:100%;"> <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;
</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
<tr>
<td align="right" width="29.5%" colspan="3"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
<tr>
<td align="right" width="29.5%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font
face="Arial, Helvetica, sans-serif" size="3"><b><b>Foreign (Non-U.S.) Investment Risk</b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund may invest in foreign (non-U.S.) securities and may experience more rapid and
extreme changes in value than the Fund that invests exclusively in securities of U.S. companies. 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 of regulation as U.S. issuers. Reporting, accounting, auditing and custody standards of foreign countries differ, in some cases significantly, from
U.S. standards. Global economies and financial markets are becoming increasingly interconnected, and conditions and events in one country, region or financial market may adversely impact issuers in a different country, region or financial market.
Also, nationalization, expropriation or confiscatory taxation, currency blockage, political changes or diplomatic developments could adversely affect the Fund's investments in a foreign country. In the event of nationalization, expropriation or
other confiscation, the Fund could lose its entire investment in foreign (non-U.S.) securities. Adverse conditions in a certain region can adversely affect securities of other countries whose economies appear to be unrelated. To the extent that the
Fund invests a significant portion of its assets in a specific geographic region, the Fund will generally have more exposure to regional economic risks associated with foreign (non-U.S.) investments. Foreign (non-U.S.) securities may also be less
liquid and more difficult to value than securities of U.S. issuers.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The global economic crisis brought several small
economies in Europe to the brink of bankruptcy and many other economies into recession and weakened the banking and financial sectors of many European countries. For example, the governments of Greece, Spain, Portugal, and the Republic of Ireland
have all experienced large public budget deficits, the effects of which are still yet unknown and may slow the overall recovery of the European economies from the global economic crisis. In addition, due to large public deficits, some European
countries may be dependent on assistance from other European governments and institutions or other central banks or supranational agencies such as the International Monetary Fund. Assistance may be dependent on a country's implementation of reforms
or reaching a certain level of performance. Failure to reach those objectives or an insufficient level of assistance could result in a deep economic downturn which could significantly affect the value of the Fund's European investments. It is
possible that one or more Economic and Monetary Union member countries could abandon the euro and return to a national currency and/or that the euro will cease to exist as a single currency in its current form. The exit of any country out of the
euro may have an extremely destabilizing effect on other eurozone countries and their economies and a negative effect on the global economy as a whole. Such an exit by one country may also increase the possibility that additional countries may exit
the euro should they face similar financial difficulties.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">At a referendum in June 2016, the United Kingdom (the UK)
voted to leave </font><font face="Arial, Helvetica, sans-serif" size="2">the European Union (EU). In connection with the British exit from the EU </font><font face="Arial, Helvetica, sans-serif" size="2">(commonly known as "Brexit"), it is expected
that the UK will invoke article </font><font face="Arial, Helvetica, sans-serif" size="2">50 of the Treaty of Lisbon to withdraw from the EU in due course, however </font><font face="Arial, Helvetica, sans-serif" size="2">there is a significant
degree of uncertainty about how negotiations relating </font><font face="Arial, Helvetica, sans-serif" size="2">to the UK's withdrawal and new trade agreements will be conducted, as </font><font face="Arial, Helvetica, sans-serif" size="2">well as
the potential consequences and precise timeframe for Brexit. It is </font><font face="Arial, Helvetica, sans-serif" size="2">expected that the UK's exit from the EU will take place within two years of </font><font
face="Arial, Helvetica, sans-serif" size="2">the UK notifying the European Council that it intends to withdraw from the </font><font face="Arial, Helvetica, sans-serif" size="2">EU. During this period and beyond, the impact of any partial or
complete </font><font face="Arial, Helvetica, sans-serif" size="2">dissolution of the EU on the UK and European economies and the broader </font><font face="Arial, Helvetica, sans-serif" size="2">global economy could be significant, resulting in
negative impacts on </font><font face="Arial, Helvetica, sans-serif" size="2">currency and financial markets generally, such as increased volatility and </font><font face="Arial, Helvetica, sans-serif" size="2">illiquidity, and potentially lower
economic growth in markets in the UK, </font><font face="Arial, Helvetica, sans-serif" size="2">Europe and globally, which may adversely affect the value of the Fund's </font><font face="Arial, Helvetica, sans-serif" size="2">portfolio investments.
</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The UK has one of the largest economies in Europe, and member countries of the EU are substantial trading partners of
the UK. The City of London's economy is dominated by financial services, some of which may have to move outside of the UK post-referendum (e.g., currency trading, international settlement). Under the referendum, banks may be forced to move staff and
comply with two separate sets of rules or lose business to banks in Europe. Furthermore, the referendum creates the potential for decreased trade, the possibility of capital outflows, devaluation of the pound sterling, the cost of higher corporate
bond spreads due to uncertainty, and the risk that all the above could damage business and consumer spending as well as foreign direct investment. As a result of the referendum, the British economy and its currency may be negatively impacted by
changes to its economic and political relations with the EU. Any further exits from the EU, or the possibility of such exits, would likely cause additional market disruption globally and introduce new legal and regulatory uncertainties.</font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The impact of the referendum in the near- and long-term is still unknown and could have additional adverse effects on economies,
financial markets, currencies and asset valuations around the world. Any attempt by the Fund to hedge against or otherwise protect its portfolio or to profit from such circumstances may fail and, accordingly, an investment in the Fund could lose
money over short or long periods.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund may invest in securities and instruments that are economically </font><font
face="Arial, Helvetica, sans-serif" size="2">tied to Russia. Investments in Russia are subject to various risks such as </font><font face="Arial, Helvetica, sans-serif" size="2">political, economic, legal, market and currency risks. The risks
include </font><font face="Arial, Helvetica, sans-serif" size="2">uncertain political and economic policies, short term market volatility, poor </font><font face="Arial, Helvetica, sans-serif" size="2">accounting standards, corruption and crime, an
inadequate regulatory </font><font face="Arial, Helvetica, sans-serif" size="2">system, and unpredictable taxation. Investments in Russia are particularly </font><font face="Arial, Helvetica, sans-serif" size="2">subject to the risk that economic
sanctions may be imposed by the United </font><font face="Arial, Helvetica, sans-serif" size="2">States and/or other countries. Such sanctions &#8212; which may impact </font><font face="Arial, Helvetica, sans-serif" size="2">companies in many
sectors, including energy, financial services and defense, </font><font face="Arial, Helvetica, sans-serif" size="2">among others &#8212; may negatively impact the Fund's performance and/or
</font><font face="Arial, Helvetica, sans-serif" size="2">ability to achieve its investment objectives. The Russian securities market is </font><font face="Arial, Helvetica, sans-serif" size="2">characterized by limited volume of trading, resulting
in difficulty in obtaining </font><font face="Arial, Helvetica, sans-serif" size="2">accurate prices. The Russian securities market, as compared to U.S. markets, </font><font face="Arial, Helvetica, sans-serif" size="2">has significant price
volatility, less liquidity, a smaller market capitalization </font><font face="Arial, Helvetica, sans-serif" size="2">and a smaller number of traded securities. There may be little publicly
</font><font face="Arial, Helvetica, sans-serif" size="2">available information about issuers. Settlement, clearing and registration of </font><font face="Arial, Helvetica, sans-serif" size="2">securities transactions are subject to risks because of
registration systems </font><font face="Arial, Helvetica, sans-serif" size="2">that may not be subject to effective government supervision. This may result </font><font face="Arial, Helvetica, sans-serif" size="2">in significant delays or problems
in registering the transfer of securities. </font><font face="Arial, Helvetica, sans-serif" size="2">Russian securities laws may not recognize foreign nominee accounts held </font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
<table width="100%">
<tr>
<td align="right" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">December 21, 2017 | <b>PROSPECTUS</b></FONT></p> </td>
<td align="right" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">59</FONT></p> </td> </tr> </table><hr style="size:3;color:#999999;width:100%;">
<DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
<tr>
<td align="left" width="29.5%" colspan="3"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
<tr>
<td align="left" width="29.5%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2">with a custodian bank, and therefore the custodian
may be considered the </font><font face="Arial, Helvetica, sans-serif" size="2">ultimate owner of securities they hold for their clients. Ownership of </font><font face="Arial, Helvetica, sans-serif" size="2">securities issued by Russian companies
is recorded by companies </font><font face="Arial, Helvetica, sans-serif" size="2">themselves and by registrars instead of through a central registration </font><font face="Arial, Helvetica, sans-serif" size="2">system. It is possible that the
ownership rights of the Fund could be lost </font><font face="Arial, Helvetica, sans-serif" size="2">through fraud or negligence. While applicable Russian regulations impose </font><font face="Arial, Helvetica, sans-serif" size="2">liability on
registrars for losses resulting from their errors, it may be difficult </font><font face="Arial, Helvetica, sans-serif" size="2">for the Fund to enforce any rights it may have against the registrar or issuer </font><font
face="Arial, Helvetica, sans-serif" size="2">of the securities in the event of loss of share registration. Adverse currency </font><font face="Arial, Helvetica, sans-serif" size="2">exchange rates are a risk and there may be a lack of available
currency </font><font face="Arial, Helvetica, sans-serif" size="2">hedging instruments. Investments in Russia may be subject to the risk of </font><font face="Arial, Helvetica, sans-serif" size="2">nationalization or expropriation of assets. Oil,
natural gas, metals, and </font><font face="Arial, Helvetica, sans-serif" size="2">timber account for a significant portion of Russia's exports, leaving the </font><font face="Arial, Helvetica, sans-serif" size="2">country vulnerable to swings in
world prices. </font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Emerging Markets Risk<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Foreign
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 above, but to a heightened degree.</font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">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 even among all or most emerging market countries. This may undermine any attempt by the Fund to reduce risk through geographic
diversification of its portfolio investments among emerging market countries.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">There is a heightened possibility of
imposition of withholding taxes on interest or dividend income 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.</font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">There is also a greater risk that an emerging market government may take </font><font face="Arial, Helvetica, sans-serif" size="2">action
that impedes or prevents the Fund from taking income and/or capital </font><font face="Arial, Helvetica, sans-serif" size="2">gains earned in the local currency and converting into U.S. dollars (</font><font
face="Arial, Helvetica, sans-serif" size="2"><i>i.e., </i></font><font face="Arial, Helvetica, sans-serif" size="2">"repatriating" local currency investments or profits). Certain emerging
</font><font face="Arial, Helvetica, sans-serif" size="2">market countries have sought to maintain foreign exchange reserves and/or </font><font face="Arial, Helvetica, sans-serif" size="2">address the economic volatility and dislocations caused by
the large </font><font face="Arial, Helvetica, sans-serif" size="2">international capital flows by controlling or restricting the conversion of the </font><font face="Arial, Helvetica, sans-serif" size="2">local currency into other currencies. This
risk tends to become more acute </font><font face="Arial, Helvetica, sans-serif" size="2">when economic conditions otherwise worsen. There can be no assurance </font><font face="Arial, Helvetica, sans-serif" size="2">that if the Fund earns income or
capital gains in an emerging market </font><font face="Arial, Helvetica, sans-serif" size="2">currency or PIMCO otherwise seeks to withdraw the Fund's investments </font><font face="Arial, Helvetica, sans-serif" size="2">from a given emerging market
country, capital controls imposed by such </font><font face="Arial, Helvetica, sans-serif" size="2">country will not prevent, or cause significant expense in, doing so. </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2">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.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">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 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. 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. See "Principal Risks of the Fund&#8212;Currency Risk." Also, investing in emerging market countries may entail purchases of
securities of issuers that are insolvent, bankrupt or otherwise of questionable ability to satisfy their payment obligations as they become due, subjecting the Fund to a greater amount of credit risk and/or high yield risk. See "Principal Risks of
the Fund&#8212;Credit Risk" and "Principal Risks of the Fund&#8212;High Yield Securities Risk."</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Currency Risk<br>
</b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund may engage in practices and strategies that will result in exposure to fluctuations in foreign
exchange rates, in which case the Fund will be subject to foreign currency risk. The Fund's Common Shares are priced in U.S. dollars and the distributions paid by the Fund to Common Shareholders are paid in U.S. dollars. However, a substantial
portion of the Fund's assets may be denominated directly in foreign (non-U.S.) currencies or in securities that trade in, and receive revenues in, foreign (non-U.S.) currencies, or in derivatives that provide exposure to foreign (non-U.S.)
currencies, it will be 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.</font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Currency rates in foreign (non-U.S.) countries may fluctuate significantly </font><font
face="Arial, Helvetica, sans-serif" size="2">over short periods of time for a number of reasons, including changes in </font><font face="Arial, Helvetica, sans-serif" size="2">interest rates, rates of inflation, balance of payments and governmental
</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
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<tr>
<td align="left" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">60 &#160;&#160;&#160;&#160; </FONT></p> </td>
<td align="left" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><b>PROSPECTUS</b> | PIMCO Dynamic Income Fund &#160;&#160;&#160;&#160; </FONT></p> </td> </tr>
</table><hr style="size:3;color:#999999;width:100%;"> <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;
</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
<tr>
<td align="right" width="29.5%" colspan="3"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
<tr>
<td align="right" width="29.5%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2">surpluses or deficits, intervention (or the
failure to intervene) by U.S. or </font><font face="Arial, Helvetica, sans-serif" size="2">foreign (non-U.S.) governments, central banks or supranational entities such </font><font face="Arial, Helvetica, sans-serif" size="2">as the International
Monetary Fund, or by the imposition of currency </font><font face="Arial, Helvetica, sans-serif" size="2">controls or other political developments in the United States or abroad. </font><font face="Arial, Helvetica, sans-serif" size="2">These
fluctuations may have a significant adverse impact on the value of </font><font face="Arial, Helvetica, sans-serif" size="2">the Fund's portfolio and/or the level of Fund distributions made to Common </font><font
face="Arial, Helvetica, sans-serif" size="2">Shareholders. As noted above, the Fund may (but is not required to) seek </font><font face="Arial, Helvetica, sans-serif" size="2">exposure to foreign currencies, or attempt to hedge exposure to reduce
the </font><font face="Arial, Helvetica, sans-serif" size="2">risk of loss due to fluctuations in currency exchange rates relative to the </font><font face="Arial, Helvetica, sans-serif" size="2">U.S. dollar. There is no assurance, however, that
these strategies will be </font><font face="Arial, Helvetica, sans-serif" size="2">available or will be used by the Fund or, if used, that they will be successful. </font><font face="Arial, Helvetica, sans-serif" size="2">As a result, the Fund's
investments in foreign currency-denominated </font><font face="Arial, Helvetica, sans-serif" size="2">securities may reduce the returns of the Fund. </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Currency risk may be particularly
high to the extent that the Fund invests in foreign (non-U.S.) currencies or engages in foreign currency transactions that are economically tied to emerging market countries. These currency transactions may present market, credit, currency,
liquidity, legal, political 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.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Redenomination Risk<br> </b></b></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">Continuing uncertainty as to the status of the euro and the 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. See "Principal Risks of the Fund&#8212; Currency Risk," "Principal Risks of the Fund&#8212;Liquidity Risk" and "Principal
Risks of the Fund&#8212;Valuation Risk." 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.</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>U.S. Government Securities Risk<br> </b></b></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">The Fund may invest in debt securities issued or guaranteed by agencies, </font><font face="Arial, Helvetica, sans-serif" size="2">instrumentalities and sponsored enterprises of the U.S. Government. Some
</font><font face="Arial, Helvetica, sans-serif" size="2">U.S. Government securities, such as U.S. Treasury bills, notes and bonds, and </font><font face="Arial, Helvetica, sans-serif" size="2">mortgage-related securities guaranteed by the
Government National </font><font face="Arial, Helvetica, sans-serif" size="2">Mortgage Association ("GNMA"), are supported by the full faith and credit </font><font face="Arial, Helvetica, sans-serif" size="2">of the United States; others, such as
those of the Federal Home Loan Banks </font><font face="Arial, Helvetica, sans-serif" size="2">("FHLBs") or the Federal Home Loan Mortgage Corporation ("FHLMC"), </font><font face="Arial, Helvetica, sans-serif" size="2">are supported by the right of
the issuer to borrow from the U.S. Treasury; </font><font face="Arial, Helvetica, sans-serif" size="2">others, such as those of the Federal National Mortgage Association </font><font face="Arial, Helvetica, sans-serif" size="2">("FNMA"), are
supported by the discretionary authority of the U.S. </font><font face="Arial, Helvetica, sans-serif" size="2">Government to purchase the agency's obligations; and still others are </font><font face="Arial, Helvetica, sans-serif" size="2">supported
only by the credit of the agency, instrumentality or corporation </font><font face="Arial, Helvetica, sans-serif" size="2">Although legislation has been enacted to support certain government
</font><font face="Arial, Helvetica, sans-serif" size="2">sponsored entities, including the FHLBs, the FHLMC and FNMA, there is no </font><font face="Arial, Helvetica, sans-serif" size="2">assurance that the obligations of such entities will be
satisfied in full, or that </font><font face="Arial, Helvetica, sans-serif" size="2">such obligations will not decrease in value or default. It is difficult, if not </font><font face="Arial, Helvetica, sans-serif" size="2">impossible, to predict the
future political, regulatory or economic changes </font><font face="Arial, Helvetica, sans-serif" size="2">that could impact the government sponsored entities and the values of their </font><font face="Arial, Helvetica, sans-serif" size="2">related
securities or obligations. In addition, certain governmental entities, </font><font face="Arial, Helvetica, sans-serif" size="2">including FNMA and FHLMC, have been subject to regulatory scrutiny </font><font
face="Arial, Helvetica, sans-serif" size="2">regarding their accounting policies and practices and other concerns that </font><font face="Arial, Helvetica, sans-serif" size="2">may result in legislation, changes in regulatory oversight and/or other
</font><font face="Arial, Helvetica, sans-serif" size="2">consequences that could adversely affect the credit quality, availability or </font><font face="Arial, Helvetica, sans-serif" size="2">investment character of securities issued by these
entities. See "Investment </font><font face="Arial, Helvetica, sans-serif" size="2">Objectives and Policies&#8212;Mortgage-Related and Other Asset-Backed </font><font face="Arial, Helvetica, sans-serif" size="2">Securities" in the Statement of
Additional Information. U.S. Government </font><font face="Arial, Helvetica, sans-serif" size="2">debt securities generally involve lower levels of credit risk than other types </font><font face="Arial, Helvetica, sans-serif" size="2">of debt
securities of similar maturities, although, as a result, the yields </font><font face="Arial, Helvetica, sans-serif" size="2">available from U.S. Government debt securities are generally lower than the </font><font
face="Arial, Helvetica, sans-serif" size="2">yields available from such other securities. Like other debt securities, the </font><font face="Arial, Helvetica, sans-serif" size="2">values of U.S. Government securities change as interest rates
fluctuate. </font><font face="Arial, Helvetica, sans-serif" size="2">Fluctuations in the value of portfolio securities will not affect interest </font><font face="Arial, Helvetica, sans-serif" size="2">income on existing portfolio securities but
will be reflected in the Fund's </font><font face="Arial, Helvetica, sans-serif" size="2">NAV. </font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Foreign (Non-U.S.) Government
Securities Risk<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund's investments in debt obligations of foreign (non-U.S.) </font><font face="Arial, Helvetica, sans-serif" size="2">governments or their
sub-divisions, agencies and government sponsored </font><font face="Arial, Helvetica, sans-serif" size="2">enterprises and obligations of international agencies and supranational </font><font face="Arial, Helvetica, sans-serif" size="2">entities
(together "Foreign Government Securities") can involve a high </font><font face="Arial, Helvetica, sans-serif" size="2">degree of risk. The foreign governmental entity that controls the repayment </font><font
face="Arial, Helvetica, sans-serif" size="2">of debt may not be able or willing to repay the principal and/or interest </font><font face="Arial, Helvetica, sans-serif" size="2">when due in accordance with the terms of such debt. A governmental
</font><font face="Arial, Helvetica, sans-serif" size="2">entity's willingness or ability to repay principal and interest due in a timely </font><font face="Arial, Helvetica, sans-serif" size="2">manner may be affected by, among other factors, its
cash flow situation, </font><font face="Arial, Helvetica, sans-serif" size="2">the extent of its foreign reserves, the availability of sufficient foreign </font><font face="Arial, Helvetica, sans-serif" size="2">exchange on the date a payment is
due, the relative size of the debt service </font><font face="Arial, Helvetica, sans-serif" size="2">burden to the economy as a whole, the governmental entity's policy </font><font face="Arial, Helvetica, sans-serif" size="2">towards the
International Monetary Fund and the political constraints to </font><font face="Arial, Helvetica, sans-serif" size="2">which a governmental entity may be subject. Foreign governmental entities
</font><font face="Arial, Helvetica, sans-serif" size="2">also may be dependent on expected disbursements from other </font><font face="Arial, Helvetica, sans-serif" size="2">governments, multilateral agencies and others abroad to reduce principal
</font><font face="Arial, Helvetica, sans-serif" size="2">and interest arrearages on their debt. The commitment on the part of these </font><font face="Arial, Helvetica, sans-serif" size="2">governments, agencies and others to make such
disbursements may be </font><font face="Arial, Helvetica, sans-serif" size="2">conditioned on the implementation of economic reforms and/or economic </font><font face="Arial, Helvetica, sans-serif" size="2">performance and the timely service of such
debtor's obligations. Failure to </font><font face="Arial, Helvetica, sans-serif" size="2">implement such reforms, achieve such levels of economic performance or </font><font face="Arial, Helvetica, sans-serif" size="2">repay principal or interest
when due may result in the cancellation of such </font><font face="Arial, Helvetica, sans-serif" size="2">third parties' commitments to lend funds to the foreign governmental </font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
<table width="100%">
<tr>
<td align="right" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">December 21, 2017 | <b>PROSPECTUS</b></FONT></p> </td>
<td align="right" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">61</FONT></p> </td> </tr> </table><hr style="size:3;color:#999999;width:100%;">
<DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
<tr>
<td align="left" width="29.5%" colspan="3"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
<tr>
<td align="left" width="29.5%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2">entity, which may further impair such debtor's
ability or willingness to timely </font><font face="Arial, Helvetica, sans-serif" size="2">service its debts. Consequently, foreign governmental entities may default </font><font face="Arial, Helvetica, sans-serif" size="2">on their debt. Holders of
Foreign Government Securities may be requested </font><font face="Arial, Helvetica, sans-serif" size="2">to participate in the rescheduling of such debt and to extend further loans </font><font face="Arial, Helvetica, sans-serif" size="2">to
governmental entities. In the event of a default by a governmental entity, </font><font face="Arial, Helvetica, sans-serif" size="2">there may be few or no effective legal remedies for collecting on such debt. </font><font
face="Arial, Helvetica, sans-serif" size="2">These risks are particularly severe with respect to the Fund's investments in </font><font face="Arial, Helvetica, sans-serif" size="2">Foreign Government Securities of emerging market countries. See
"Principal </font><font face="Arial, Helvetica, sans-serif" size="2">Risks of the Fund&#8212;Emerging Markets Risk." Among other risks, if the </font><font face="Arial, Helvetica, sans-serif" size="2">Fund's investments in Foreign Government
Securities issued by an emerging </font><font face="Arial, Helvetica, sans-serif" size="2">market country need to be liquidated quickly, the Fund could sustain </font><font face="Arial, Helvetica, sans-serif" size="2">significant transaction costs.
Also, governments in many emerging market </font><font face="Arial, Helvetica, sans-serif" size="2">countries participate to a significant degree in their economies and </font><font face="Arial, Helvetica, sans-serif" size="2">securities markets,
which may impair investment and economic growth, and </font><font face="Arial, Helvetica, sans-serif" size="2">which may in turn diminish the value of the Fund's holdings in emerging </font><font face="Arial, Helvetica, sans-serif" size="2">market
Foreign Government Securities and the currencies in which they are </font><font face="Arial, Helvetica, sans-serif" size="2">denominated and/or pay revenues. </font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font
face="Arial, Helvetica, sans-serif" size="3"><b><b>Convertible Securities Risk<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">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. 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. 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 debt obligations. Convertible securities are often rated below investment grade or not rated because they fall below debt obligations and just above common equity in order of preference or priority on the issuer's balance sheet. See
"Principal Risks of the Fund&#8212;High Yield Securities Risk."</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Synthetic Convertible Securities Risk<br> </b></b></font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2">The Fund may invest in synthetic convertible securities, which are created </font><font face="Arial, Helvetica, sans-serif" size="2">through a combination of separate securities that possess the
two principal </font><font face="Arial, Helvetica, sans-serif" size="2">characteristics of a traditional convertible security, i.e., an income-producing </font><font face="Arial, Helvetica, sans-serif" size="2">security ("income-producing
component") and the right to acquire an </font><font face="Arial, Helvetica, sans-serif" size="2">equity security ("convertible component"). The income-producing </font><font face="Arial, Helvetica, sans-serif" size="2">component is achieved by
investing in non-convertible, income-producing </font><font face="Arial, Helvetica, sans-serif" size="2">securities such as bonds, preferred securities and money market </font><font face="Arial, Helvetica, sans-serif" size="2">instruments. The
convertible component is achieved by purchasing warrants </font><font face="Arial, Helvetica, sans-serif" size="2">or options to buy common stock at a certain exercise price, or options on a
</font><font face="Arial, Helvetica, sans-serif" size="2">stock index. The values of synthetic convertible securities will respond </font><font face="Arial, Helvetica, sans-serif" size="2">differently to market fluctuations than a traditional
convertible security </font><font face="Arial, Helvetica, sans-serif" size="2">because a synthetic convertible is composed of two or more separate </font><font face="Arial, Helvetica, sans-serif" size="2">securities or instruments, each with its own
market value. Synthetic </font><font face="Arial, Helvetica, sans-serif" size="2">convertible securities are also subject to the risks associated with </font><font face="Arial, Helvetica, sans-serif" size="2">derivatives. See "Principal Risks of the
Fund&#8212;Derivatives Risk." In addition, </font><font face="Arial, Helvetica, sans-serif" size="2">if the value of the underlying common stock or the level of the index </font><font face="Arial, Helvetica, sans-serif" size="2">involved in the
convertible element falls below the strike price of the </font><font face="Arial, Helvetica, sans-serif" size="2">warrant or option, the warrant or option may lose all value. </font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font
face="Arial, Helvetica, sans-serif" size="3"><b><b>Contingent Convertible Securities Risk<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">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 upon
the occurrence of certain triggering events ("triggers") linked to regulatory capital thresholds or regulatory actions relating to the issuer's continued viability. As a result, an investment by the Fund in CoCos is subject to the risk that coupon
(i.e., interest) payments may be cancelled by the issuer or a regulatory authority in order to help the issuer absorb losses. An investment by the Fund in CoCos is also subject to the risk that, in the event of the liquidation, dissolution or
winding-up of an issuer prior to a trigger event, the Fund's rights and claims will generally rank junior to the claims of holders of the issuer's other debt obligations. In addition, if CoCos held by the Fund are converted into the issuer's
underlying equity securities following a trigger event, the Fund's holding may be further subordinated due to the conversion from a debt to equity instrument. Further, the value of an investment in CoCos is unpredictable and will be influenced by
many factors and risks, including interest rate risk, credit risk, market risk, liquidity risk and valuation risk. An investment by the Fund in CoCos may result in losses to the Fund.</font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Valuation Risk<br> </b></b></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">When market quotations are not readily available or are deemed to be unreliable, the Fund values its investments at fair value as
determined in good faith pursuant to policies and procedures approved by the Board of Trustees. See "Net Asset Value." 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.</font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Leverage Risk<br> </b></b></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">The Fund's use of leverage (as described under "Use of Leverage" in the </font><font face="Arial, Helvetica, sans-serif" size="2">body of this prospectus) creates the opportunity for increased Common
</font><font face="Arial, Helvetica, sans-serif" size="2">Share net income, but also creates special risks for Common Shareholders. </font><font face="Arial, Helvetica, sans-serif" size="2">To the extent used, there is no assurance that the Fund's
leveraging </font><font face="Arial, Helvetica, sans-serif" size="2">strategies will be successful. Leverage is a speculative technique that may </font><font face="Arial, Helvetica, sans-serif" size="2">expose the Fund to greater risk and increased
costs. The net proceeds that </font><font face="Arial, Helvetica, sans-serif" size="2">the Fund obtains from its use of reverse repurchase agreements, dollar rolls </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
<table width="100%">
<tr>
<td align="left" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">62 &#160;&#160;&#160;&#160; </FONT></p> </td>
<td align="left" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><b>PROSPECTUS</b> | PIMCO Dynamic Income Fund &#160;&#160;&#160;&#160; </FONT></p> </td> </tr>
</table><hr style="size:3;color:#999999;width:100%;"> <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;
</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
<tr>
<td align="right" width="29.5%" colspan="3"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
<tr>
<td align="right" width="29.5%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2">and/or borrowings (as well as from any future
issuance of preferred shares) </font><font face="Arial, Helvetica, sans-serif" size="2">will be invested in accordance with the Fund's investment objectives and </font><font face="Arial, Helvetica, sans-serif" size="2">policies as described in this
prospectus and any prospectus supplement. </font><font face="Arial, Helvetica, sans-serif" size="2">Interest or other expenses payable by the Fund with respect to its reverse </font><font face="Arial, Helvetica, sans-serif" size="2">repurchase
agreements, dollar rolls and borrowings for dividends payable </font><font face="Arial, Helvetica, sans-serif" size="2">with respect to any outstanding preferred shares will generally be based on </font><font
face="Arial, Helvetica, sans-serif" size="2">shorter-term interest rates that would be periodically reset. So long as the </font><font face="Arial, Helvetica, sans-serif" size="2">Fund's portfolio investments provide a higher rate of return (net of
</font><font face="Arial, Helvetica, sans-serif" size="2">applicable Fund expenses) than the interest rates and other costs to the </font><font face="Arial, Helvetica, sans-serif" size="2">Fund of such leverage, the investment of the proceeds
thereof will generate </font><font face="Arial, Helvetica, sans-serif" size="2">more income than will be needed to pay the costs of the leverage. If so, and </font><font face="Arial, Helvetica, sans-serif" size="2">all other things being equal, the
excess may be used to pay higher dividends </font><font face="Arial, Helvetica, sans-serif" size="2">to Common Shareholders than if the Fund were not so leveraged. If, </font><font face="Arial, Helvetica, sans-serif" size="2">however, shorter-term
interest rates rise relative to the rate of return on the </font><font face="Arial, Helvetica, sans-serif" size="2">Fund's portfolio, the interest and other costs of leverage to the Fund
</font><font face="Arial, Helvetica, sans-serif" size="2">(including interest expenses on reverse repurchase agreements, dollar rolls </font><font face="Arial, Helvetica, sans-serif" size="2">and borrowings and the dividend rate on any outstanding
preferred shares) </font><font face="Arial, Helvetica, sans-serif" size="2">could exceed the rate of return on the debt obligations and other </font><font face="Arial, Helvetica, sans-serif" size="2">investments held by the Fund, thereby reducing
return to Common </font><font face="Arial, Helvetica, sans-serif" size="2">Shareholders. In addition, fees and expenses of any form of leverage used </font><font face="Arial, Helvetica, sans-serif" size="2">by the Fund will be borne entirely by the
Common Shareholders (and not by </font><font face="Arial, Helvetica, sans-serif" size="2">preferred shareholders, if any) and will reduce the investment return of the </font><font face="Arial, Helvetica, sans-serif" size="2">Common Shares.
Therefore, there can be no assurance that the Fund's use </font><font face="Arial, Helvetica, sans-serif" size="2">of leverage will result in a higher yield on the Common Shares, and it may
</font><font face="Arial, Helvetica, sans-serif" size="2">result in losses. In addition, any preferred shares issued by the Fund are </font><font face="Arial, Helvetica, sans-serif" size="2">expected to pay cumulative dividends, which may tend to
increase leverage </font><font face="Arial, Helvetica, sans-serif" size="2">risk. </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Leverage creates several major types of risks for Common Shareholders, including:</font></p>
<p style="padding:0;margin:0;"> <div face="Arial, Helvetica, sans-serif" size="2" style="padding-left:8;position: absolute; height:1em; text-align:left; margin:0;valing:top;">&#9632;</div> <p style="padding-left:24;margin:0;"><font
face="Arial, Helvetica, sans-serif" size="2">the likelihood of greater volatility of NAV and market price of the Common Shares, and of the investment return to Common Shareholders, than a comparable portfolio without leverage;</font></p> <p></p>
<p style="padding:0;margin:0;"> <div face="Arial, Helvetica, sans-serif" size="2" style="padding-left:8;position: absolute; height:1em; text-align:left; margin:0;valing:top;">&#9632;</div> <p style="padding-left:24;margin:0;"><font
face="Arial, Helvetica, sans-serif" size="2">the possibility either that the Common Share dividends will fall if the interest and other costs of leverage rise, or that dividends paid on Common Shares will fluctuate because such costs vary over time;
and</font></p> <p></p> <p style="padding:0;margin:0;"> <div face="Arial, Helvetica, sans-serif" size="2" style="padding-left:8;position: absolute; height:1em; text-align:left; margin:0;valing:top;">&#9632;</div> <p style="padding-left:24;margin:0;"><font
face="Arial, Helvetica, sans-serif" size="2">the effects of leverage in a declining market or a rising interest rate environment, as leverage is likely to cause a greater decline in the NAV of the Common Shares than if the Fund were not leveraged
and may result in a greater decline the market value of the Common Shares.</font></p> <p></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">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.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">The use by the Fund of reverse repurchase agreements and dollar rolls to obtain leverage also involves special risks. For instance, the market value of the securities that the Fund is obligated to
repurchase under a reverse repurchase agreement or dollar roll may decline below the repurchase price. See "The Fund's Investment Objectives and Policies&#8212;Portfolio Contents and Other Information&#8212;Reverse Repurchase Agreements and Dollar
Rolls."</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">In addition to reverse repurchase agreements, dollar rolls and/or borrowings (or a future issuance of
preferred shares), the Fund may engage in other transactions 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,
basis swaps and other derivative transactions, loans of portfolio securities, short sales and when-issued, delayed delivery and forward commitment transactions). 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. The Fund manages some of its derivative positions by segregating an amount of cash or liquid securities equal to the notional value or the
market value, as applicable, of those positions. See "Principal Risks of the Fund&#8212;Segregation and Coverage Risk." The Fund may also offset derivatives positions against one another or against other assets to manage effective market exposure
resulting from derivatives in its portfolio. 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. See "Use of
Leverage."</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The SEC has issued a proposed rule relating to a registered investment company's use of derivatives and
related instruments that, if adopted, could potentially require the Fund to reduce its use of leverage and/or observe more stringent asset coverage and related requirements than are currently imposed by the 1940 Act, which could adversely affect the
value or performance of the Fund and the Common Shares.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Because the fees received by the Investment Manager are based
on the "total managed assets" of the Fund (including assets attributable to any reverse repurchase agreements, dollar rolls, borrowings and preferred shares that may be outstanding) minus accrued liabilities (other than liabilities representing
reverse repurchase agreements, dollar rolls and borrowings), the Investment Manager has a financial incentive for the Fund to use certain forms of leverage (e.g., reverse repurchase agreements, dollar rolls and borrowings) or to issue preferred
shares, which may create a conflict of interest between the Investment Manager, on the one hand, and the Common Shareholders, on the other hand.</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font
face="Arial, Helvetica, sans-serif" size="3"><b><b>Segregation and Coverage Risk<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Certain portfolio management techniques, such as, among other things, </font><font
face="Arial, Helvetica, sans-serif" size="2">using reverse repurchase agreements or dollar rolls, purchasing securities on </font><font face="Arial, Helvetica, sans-serif" size="2">a when-issued or delayed delivery basis, entering into swap
agreements, </font><font face="Arial, Helvetica, sans-serif" size="2">futures contracts or other derivative transactions, or engaging in short sales, </font><font face="Arial, Helvetica, sans-serif" size="2">may be considered senior securities
unless steps are taken to segregate the </font><font face="Arial, Helvetica, sans-serif" size="2">Fund's assets or otherwise cover its obligations. To avoid having these </font><font face="Arial, Helvetica, sans-serif" size="2">instruments
considered senior securities, the Fund may segregate liquid </font><font face="Arial, Helvetica, sans-serif" size="2">assets with a value equal (on a daily mark-to-market basis) to its
</font><font face="Arial, Helvetica, sans-serif" size="2">obligations under these types of leveraged transactions, enter into offsetting </font><font face="Arial, Helvetica, sans-serif" size="2">transactions or otherwise cover such transactions. See
"Use of Leverage" in </font><font face="Arial, Helvetica, sans-serif" size="2">this prospectus. The Fund may be unable to use such segregated assets for </font><font face="Arial, Helvetica, sans-serif" size="2">certain other purposes, which could
result in the Fund earning a lower </font><font face="Arial, Helvetica, sans-serif" size="2">return on its portfolio than it might otherwise earn if it did not have to </font><font face="Arial, Helvetica, sans-serif" size="2">segregate those assets
in respect of, or otherwise cover such portfolio </font><font face="Arial, Helvetica, sans-serif" size="2">positions. To the extent the Fund's assets are segregated or committed as </font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
<table width="100%">
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<td align="right" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">December 21, 2017 | <b>PROSPECTUS</b></FONT></p> </td>
<td align="right" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">63</FONT></p> </td> </tr> </table><hr style="size:3;color:#999999;width:100%;">
<DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
<tr>
<td align="left" width="29.5%" colspan="3"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
<tr>
<td align="left" width="29.5%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2">cover, it could limit the Fund's investment
flexibility. Segregating assets and </font><font face="Arial, Helvetica, sans-serif" size="2">covering positions will not limit or offset losses on related positions. </font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font
face="Arial, Helvetica, sans-serif" size="3"><b><b>Derivatives Risk<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">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, as well as to leverage its portfolio. The Fund may use derivatives to gain exposure to securities markets in which it may invest (e.g., pending investment of the proceeds of this offering in
individual securities, as well as on an ongoing basis). The Fund may also use derivatives to add leverage to its portfolio. See "Principal Risks of the Fund&#8212;Leverage Risk." Derivatives transactions that the Fund may utilize include, but are
not limited to, purchases or sales 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. The Fund may also have
exposure to derivatives, such as interest rate or credit-default swaps, through investment in credit-linked trust certificates and other securities issued by special purpose or structured vehicles. The Fund's use of derivative instruments involves
risks different from, and possibly greater than, the risks associated with investing directly in securities and other traditional investments. Derivatives are subject to a number of risks described elsewhere in this prospectus, such as liquidity
risk, interest rate risk, issuer risk, credit risk, leveraging risk, counterparty risk and management risk. See also "Principal Risks of the Fund&#8212;Segregation and Coverage Risk." They also involve the risk of mispricing or improper valuation,
the risk of unfavorable or ambiguous documentation and the risk that changes in the value of the derivative may not correlate perfectly with the underlying asset, rate or index. If the Fund invests in a derivative instrument, it could lose more than
the principal amount invested. 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. The Fund's use of derivatives also may affect the amount, timing, or character of distributions to, and taxes payable by, Common Shareholders. See "Tax Matters." OTC derivative transactions are also subject to the risk that a
counterparty to the transaction will not fulfill its contractual obligations to the other party, as many of the protections afforded to centrally-cleared derivative transactions might not be available for OTC derivative transactions. For derivatives
traded on an exchange or through a central counterparty, credit risk resides with the creditworthiness of the Fund's clearing broker, or the clearinghouse itself, rather than with a counterparty in an OTC derivative transaction.</font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The regulation of the derivatives markets has increased over the past </font><font face="Arial, Helvetica, sans-serif" size="2">several
years, and additional future regulation of the derivatives markets </font><font face="Arial, Helvetica, sans-serif" size="2">may make derivatives more costly, may limit the availability or reduce the </font><font
face="Arial, Helvetica, sans-serif" size="2">liquidity of derivatives, or may otherwise adversely affect the value or </font><font face="Arial, Helvetica, sans-serif" size="2">performance of derivatives. Any such adverse future developments could
</font><font face="Arial, Helvetica, sans-serif" size="2">impair the effectiveness of the Fund's derivative transactions and cause the </font><font face="Arial, Helvetica, sans-serif" size="2">Fund to lose value. For instance, in December 2015, the
SEC proposed new </font><font face="Arial, Helvetica, sans-serif" size="2">regulations applicable to a registered investment company's use of </font><font face="Arial, Helvetica, sans-serif" size="2">derivatives and related instruments. If adopted
as proposed, these </font><font face="Arial, Helvetica, sans-serif" size="2">regulations could significantly limit or impact the Fund's ability to invest in </font><font face="Arial, Helvetica, sans-serif" size="2">derivatives and other instruments,
limit the Fund's ability to employ certain </font><font face="Arial, Helvetica, sans-serif" size="2">strategies that use derivatives and/or adversely affect the Fund's </font><font face="Arial, Helvetica, sans-serif" size="2">performance, efficiency
in implementing its strategy, liquidity and/or ability </font><font face="Arial, Helvetica, sans-serif" size="2">to pursue its investment objectives. </font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font
face="Arial, Helvetica, sans-serif" size="3"><b><b>Credit Default Swaps Risk<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">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 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 since if an event of default occurs, the seller must pay the buyer the full notional value of the reference obligation. See "Principal Risks of the Fund&#8212;Leverage Risk."</font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Although the Fund may seek to realize gains by selling credit default swaps that increase in value, to realize gains on selling credit
default swaps, an active secondary market for such instruments must exist or the Fund must otherwise be able to close out these transactions at advantageous times. In addition to the risk of losses described above, if no such secondary market exists
or the Fund is otherwise unable to close out these transactions at advantageous times, selling credit default swaps may not be profitable for the Fund.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">The market for credit default swaps has become more volatile in recent years 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 in the case of a cleared credit default swap or another third party in the case of an uncleared credit default swap). 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.</font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Counterparty Risk<br> </b></b></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund will be subject to credit risk with respect to the counterparties to
</font><font face="Arial, Helvetica, sans-serif" size="2">the derivative contracts and other instruments entered into by the Fund or </font><font face="Arial, Helvetica, sans-serif" size="2">held by special purpose or structured vehicles in which
the Fund invests. In </font><font face="Arial, Helvetica, sans-serif" size="2">the event that the Fund enters into a derivative transaction with a </font><font face="Arial, Helvetica, sans-serif" size="2">counterparty that subsequently becomes
insolvent or becomes the subject </font><font face="Arial, Helvetica, sans-serif" size="2">of a bankruptcy case, the derivative transaction may be terminated in </font><font face="Arial, Helvetica, sans-serif" size="2">accordance with its terms and
the Fund's ability to realize its rights under </font><font face="Arial, Helvetica, sans-serif" size="2">the derivative instrument and its ability to distribute the proceeds could be
</font><font face="Arial, Helvetica, sans-serif" size="2">adversely affected. If a counterparty becomes bankrupt or otherwise fails to </font><font face="Arial, Helvetica, sans-serif" size="2">perform its obligations under a derivative contract due
to financial </font><font face="Arial, Helvetica, sans-serif" size="2">difficulties, the Fund may experience significant delays in obtaining any </font><font face="Arial, Helvetica, sans-serif" size="2">recovery (including recovery of any collateral
it has provided to the </font><font face="Arial, Helvetica, sans-serif" size="2">counterparty) in a dissolution, assignment for the benefit of creditors, </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
<table width="100%">
<tr>
<td align="left" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">64 &#160;&#160;&#160;&#160; </FONT></p> </td>
<td align="left" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><b>PROSPECTUS</b> | PIMCO Dynamic Income Fund &#160;&#160;&#160;&#160; </FONT></p> </td> </tr>
</table><hr style="size:3;color:#999999;width:100%;"> <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;
</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
<tr>
<td align="right" width="29.5%" colspan="3"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
<tr>
<td align="right" width="29.5%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2">liquidation, winding-up, bankruptcy, or other
analogous proceeding. In </font><font face="Arial, Helvetica, sans-serif" size="2">addition, in the event of the insolvency of a counterparty to a derivative </font><font face="Arial, Helvetica, sans-serif" size="2">transaction, the derivative
transaction would typically be terminated at its </font><font face="Arial, Helvetica, sans-serif" size="2">fair market value. If the Fund is owed this fair market value in the </font><font face="Arial, Helvetica, sans-serif" size="2">termination of
the derivative transaction and its claim is unsecured, the </font><font face="Arial, Helvetica, sans-serif" size="2">Fund will be treated as a general creditor of such counterparty, and will not </font><font
face="Arial, Helvetica, sans-serif" size="2">have any claim with respect to any underlying security or asset. The Fund </font><font face="Arial, Helvetica, sans-serif" size="2">may obtain only a limited recovery or may obtain no recovery in such
</font><font face="Arial, Helvetica, sans-serif" size="2">circumstances. </font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Equity Securities and Related Market Risk<br>
</b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Subject to the Fund's investment policies, the Fund may hold common stocks and other equity securities from time to time, including without limit those it has received through
the conversion of a convertible security held by the Fund or in connection with the restructuring of a debt security. The market price of common stocks and other equity securities may go up or down, sometimes rapidly or unpredictably. Equity
securities may decline in value due to factors affecting equity securities markets generally, particular industries represented in those markets, or the issuer itself. See "Principal Risks of the Fund&#8212;Issuer Risk." The values of equity
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 interest or
currency rates or adverse investor sentiment generally. They may also decline due to factors that affect a particular industry or industries, such as labor shortages or increased production costs and competitive conditions within an industry. Equity
securities generally have greater price volatility than bonds and other debt securities.</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Preferred Securities Risk<br>
</b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">In addition to equity securities risk (see "Principal Risks of the Fund&#8212;Equity </font><font face="Arial, Helvetica, sans-serif" size="2">Securities and Related Market
Risk"), credit risk (see "Principal Risks of the </font><font face="Arial, Helvetica, sans-serif" size="2">Fund&#8212;Credit Risk") and possibly high yield risk (see "Principal Risks of the
</font><font face="Arial, Helvetica, sans-serif" size="2">Fund&#8212;High Yield Securities Risk"), investment in preferred securities </font><font face="Arial, Helvetica, sans-serif" size="2">involves certain other risks. Certain preferred
securities contain provisions </font><font face="Arial, Helvetica, sans-serif" size="2">that allow an issuer under certain conditions to skip or defer distributions. If </font><font face="Arial, Helvetica, sans-serif" size="2">the Fund owns a
preferred security that is deferring its distribution, the Fund </font><font face="Arial, Helvetica, sans-serif" size="2">may be required to include the amount of the deferred distribution in its </font><font
face="Arial, Helvetica, sans-serif" size="2">taxable income for tax purposes although it does not currently receive such </font><font face="Arial, Helvetica, sans-serif" size="2">amount in cash. In order to receive the special treatment accorded to
</font><font face="Arial, Helvetica, sans-serif" size="2">regulated investment companies and their shareholders under the Code </font><font face="Arial, Helvetica, sans-serif" size="2">and to avoid U.S. federal income and/or excise taxes at the Fund
level, the </font><font face="Arial, Helvetica, sans-serif" size="2">Fund may be required to distribute this income to shareholders in the tax </font><font face="Arial, Helvetica, sans-serif" size="2">year in which the income is recognized (without
a corresponding receipt of </font><font face="Arial, Helvetica, sans-serif" size="2">cash). Therefore, the Fund may be required to pay out as an income </font><font face="Arial, Helvetica, sans-serif" size="2">distribution in any such tax year an
amount greater than the total amount </font><font face="Arial, Helvetica, sans-serif" size="2">of cash income the Fund actually received, and to sell portfolio securities, </font><font face="Arial, Helvetica, sans-serif" size="2">including at
potentially disadvantageous times or prices, to obtain cash </font><font face="Arial, Helvetica, sans-serif" size="2">needed for these income distributions. Preferred securities often are subject </font><font
face="Arial, Helvetica, sans-serif" size="2">to legal provisions that allow for redemption in the event of certain tax or </font><font face="Arial, Helvetica, sans-serif" size="2">legal changes or at the issuer's call. In the event of redemption,
the Fund </font><font face="Arial, Helvetica, sans-serif" size="2">may not be able to reinvest the proceeds at comparable rates of return. </font><font face="Arial, Helvetica, sans-serif" size="2">Preferred securities are subordinated to bonds and
other debt securities in </font><font face="Arial, Helvetica, sans-serif" size="2">an issuer's capital structure in terms of priority for corporate income and </font><font face="Arial, Helvetica, sans-serif" size="2">liquidation payments, and
therefore will be subject to greater credit risk </font><font face="Arial, Helvetica, sans-serif" size="2">than those debt securities. Preferred securities may trade less frequently and </font><font face="Arial, Helvetica, sans-serif" size="2">in a
more limited volume and may be subject to more abrupt or erratic price </font><font face="Arial, Helvetica, sans-serif" size="2">movements than many other securities, such as common stocks, corporate </font><font
face="Arial, Helvetica, sans-serif" size="2">debt securities and U.S. Government securities. </font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Confidential Information Access
Risk<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">In managing the Fund, 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 limit, 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&#160;not publicly available. Pursuant to applicable policies and procedures, PIMCO may (but is not required to) seek to avoid
receipt of Confidential Information from the 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 (e.g., other securities
issued by the bank used in the example above). 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.</font></p>
<p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Inflation/Deflation Risk<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">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. 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.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font
face="Arial, Helvetica, sans-serif" size="3"><b><b>Risk of Regulatory Changes<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Legal, tax and regulatory changes could occur and may adversely affect the </font><font
face="Arial, Helvetica, sans-serif" size="2">Fund and its ability to pursue its investment strategies and/or increase the </font><font face="Arial, Helvetica, sans-serif" size="2">costs of implementing such strategies. New (or revised) laws or
regulations </font><font face="Arial, Helvetica, sans-serif" size="2">may be imposed by CFTC, the SEC, the IRS, the U.S. Federal Reserve or other </font><font face="Arial, Helvetica, sans-serif" size="2">banking regulators, other governmental
regulatory authorities or self-</font><font face="Arial, Helvetica, sans-serif" size="2">regulatory organizations that supervise the financial markets that could </font><font face="Arial, Helvetica, sans-serif" size="2">adversely affect the Fund. In
particular, these agencies are implementing a </font><font face="Arial, Helvetica, sans-serif" size="2">variety of new rules pursuant to financial reform legislation in the United </font><font face="Arial, Helvetica, sans-serif" size="2">States. The
EU (and some other countries) are implementing similar </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
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<td align="right" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">December 21, 2017 | <b>PROSPECTUS</b></FONT></p> </td>
<td align="right" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">65</FONT></p> </td> </tr> </table><hr style="size:3;color:#999999;width:100%;">
<DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
<tr>
<td align="left" width="29.5%" colspan="3"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
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<td align="left" width="29.5%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2">requirements. The Fund also may be adversely
affected by changes in the </font><font face="Arial, Helvetica, sans-serif" size="2">enforcement or interpretation of existing statutes and rules by these </font><font face="Arial, Helvetica, sans-serif" size="2">governmental regulatory authorities
or self-regulatory organizations. </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">In addition, the securities and futures markets are subject to comprehensive statutes, regulations and margin requirements. The CFTC, the SEC, the
Federal Deposit Insurance Corporation, other regulators and self-regulatory organizations and exchanges are authorized under these statutes, regulations and otherwise to take extraordinary actions in the event of market emergencies. 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.</font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The CFTC and certain futures exchanges have established limits, referred to as "position limits," on the maximum net long or net short
positions which any person may hold or control in particular options and futures contracts. The CFTC has proposed position limits for certain swaps. All positions owned or controlled by the same person or entity, even if in different accounts, may
be aggregated for purposes of determining whether the applicable position limits have been exceeded. Thus, even if the Fund does not intend to exceed applicable position limits, it is possible that different clients managed by the Investment Manager
and their related parties may be aggregated for this purpose. Therefore it is possible that the trading decisions of Investment Manager may have to be modified and that positions held by the Fund may have to be liquidated in order to avoid exceeding
such limits. The modification of investment decisions or the elimination of open positions, if it occurs, may adversely affect the performance of the Fund.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">The SEC has in the past adopted interim rules requiring reporting of all short positions above a certain de <i>minimis</i> threshold and may adopt rules requiring monthly public disclosure in the future.
In addition, other non-U.S. jurisdictions where the Fund may trade have adopted reporting requirements. If the Fund's short positions or its strategy become generally known, it could have a significant effect on the Investment Manager's ability to
implement its investment strategy. In particular, it would make it more likely that other investors could cause a short squeeze in the securities held short by the Fund forcing the Fund to cover its positions at a loss. Such reporting requirements
may also limit the Investment Manager's ability to access management and other personnel at certain companies where the Investment Manager seeks to take a short position. In addition, if other investors engage in copycat behavior by taking positions
in the same issuers as the Fund, the cost of borrowing securities to sell short could increase drastically and the availability of such securities to the Fund could decrease drastically. Such events could make the Fund unable to execute its
investment strategy. In addition, if the SEC were to adopt restrictions regarding short sales, they could restrict the Fund's ability to engage in short sales in certain circumstances, and the Fund may be unable to execute its investment strategies
as a result.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The SEC and regulatory authorities in other jurisdictions may adopt (and in certain cases, have adopted)
bans on short sales of certain securities in response to market events. Bans on short selling may make it impossible for the Fund to execute certain investment strategies and may have a material adverse effect on the Fund's ability to generate
returns.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Recently adopted rules implementing the credit risk retention requirements of the Dodd-Frank Act for
asset-backed securities will require the sponsor of certain securitization vehicles (or a majority owned affiliate of such sponsor) to retain, and to refrain from transferring, selling, conveying to a third party, or hedging 5% of the credit risk in
assets transferred, sold, or conveyed through the issuance of the asset-backed securities of such vehicle, subject to certain exceptions. The rules apply to offerings of residential mortgage-backed securities (RMBS) occurring on and after December
24, 2015 and to offerings of other types of asset-backed securities occurring on and after December 24, 2016, subject to certain exceptions. In addition, a refinancing of, or a significant amendment to, a securitization that closed prior to such
date may in certain cases result in the application of the rules to a securitization that was previously not subject to the Dodd-Frank risk retention requirements. The impact of the risk retention rules on the securitization markets is uncertain.
These requirements may increase the costs to originators, securitizers, and, in certain cases, collateral managers of securitization vehicles in which the Fund may invest, which costs could be passed along to such Fund as an investor in such
vehicles. In addition, the costs imposed by the risk retention rules on originators, securitizers and/or collateral managers may result in a reduction of the number of new offerings of asset-backed securities and thus in fewer investment
opportunities for the Fund. A reduction in the number of new securitizations could also reduce liquidity in the markets for certain types of financial assets that are typically held by securitization vehicles, which in turn could negatively affect
the returns on the Fund's investment in asset-backed securities.</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Private Placements Risk<br> </b></b></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">A private placement involves the sale of securities that have not been registered under the 1933 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&#8212;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&#8212;Valuation Risk."</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Inflation/Deflation Risk<br>
</b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">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. 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.</font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Risk of Regulatory Changes<br> </b></b></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">Legal, tax and regulatory changes could occur and may adversely affect the </font><font face="Arial, Helvetica, sans-serif" size="2">Fund and its ability to pursue its investment strategies and/or
increase the </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
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<td align="left" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">66 &#160;&#160;&#160;&#160; </FONT></p> </td>
<td align="left" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><b>PROSPECTUS</b> | PIMCO Dynamic Income Fund &#160;&#160;&#160;&#160; </FONT></p> </td> </tr>
</table><hr style="size:3;color:#999999;width:100%;"> <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;
</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
<tr>
<td align="right" width="29.5%" colspan="3"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
<tr>
<td align="right" width="29.5%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2">costs of implementing such strategies. New (or
revised) laws or regulations </font><font face="Arial, Helvetica, sans-serif" size="2">may be imposed by the CFTC, the SEC, the IRS, the U.S. Federal Reserve or </font><font face="Arial, Helvetica, sans-serif" size="2">other banking regulators,
other governmental regulatory authorities or self-</font><font face="Arial, Helvetica, sans-serif" size="2">regulatory organizations that supervise the financial markets that could </font><font face="Arial, Helvetica, sans-serif" size="2">adversely
affect the Fund. In particular, these agencies are implementing a </font><font face="Arial, Helvetica, sans-serif" size="2">variety of new rules pursuant to financial reform legislation in the United </font><font
face="Arial, Helvetica, sans-serif" size="2">States. The EU (and some other countries) are implementing similar </font><font face="Arial, Helvetica, sans-serif" size="2">requirements. The Fund also may be adversely affected by changes in the </font><font
face="Arial, Helvetica, sans-serif" size="2">enforcement or interpretation of existing statutes and rules by these </font><font face="Arial, Helvetica, sans-serif" size="2">governmental regulatory authorities or self-regulatory organizations.
</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">In addition, the securities and futures markets are subject to comprehensive statutes, regulations and margin requirements. The CFTC, the SEC, the Federal Deposit Insurance
Corporation, other regulators and self-regulatory organizations and exchanges are authorized under these statutes, regulations and otherwise to take extraordinary actions in the event of market emergencies. 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. The CFTC and certain futures exchanges have established
limits, referred to as "position limits," on the maximum net long or net short positions which any person may hold or control in particular options and futures contracts.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2">The CFTC has proposed position limits for certain swaps. All positions owned or controlled by the same person or entity, even if in different accounts, may be aggregated for purposes of
determining whether the applicable position limits have been exceeded. Thus, even if the Fund does not intend to exceed applicable position limits, it is possible that different clients managed by the Investment Manager and their related parties may
be aggregated for this purpose. Therefore it is possible that the trading decisions of Investment Manager may have to be modified and that positions held by the Fund may have to be liquidated in order to avoid exceeding such limits. The modification
of investment decisions or the elimination of open positions, if it occurs, may adversely affect the performance of the Fund.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">The SEC has in the past adopted interim rules requiring reporting of all </font><font face="Arial, Helvetica, sans-serif" size="2">short positions above a certain </font><font
face="Arial, Helvetica, sans-serif" size="2"><i>de minimis </i></font><font face="Arial, Helvetica, sans-serif" size="2">threshold and may adopt rules </font><font face="Arial, Helvetica, sans-serif" size="2">requiring monthly public disclosure in
the future. In addition, other non-U.S. </font><font face="Arial, Helvetica, sans-serif" size="2">jurisdictions where the Fund may trade have adopted reporting </font><font face="Arial, Helvetica, sans-serif" size="2">requirements. If the Fund's
short positions or its strategy become generally </font><font face="Arial, Helvetica, sans-serif" size="2">known, it could have a significant effect on the Investment Manager's </font><font face="Arial, Helvetica, sans-serif" size="2">ability to
implement its investment strategy. In particular, it would make it </font><font face="Arial, Helvetica, sans-serif" size="2">more likely that other investors could cause a short squeeze in the securities </font><font
face="Arial, Helvetica, sans-serif" size="2">held short by the Fund forcing the Fund to cover its positions at a loss. Such </font><font face="Arial, Helvetica, sans-serif" size="2">reporting requirements may also limit the Investment Manager's
ability to </font><font face="Arial, Helvetica, sans-serif" size="2">access management and other personnel at certain companies where the </font><font face="Arial, Helvetica, sans-serif" size="2">Investment Manager seeks to take a short position. In
addition, if other </font><font face="Arial, Helvetica, sans-serif" size="2">investors engage in copycat behavior by taking positions in the same </font><font face="Arial, Helvetica, sans-serif" size="2">issuers as the Fund, the cost of borrowing
securities to sell short could </font><font face="Arial, Helvetica, sans-serif" size="2">increase drastically and the availability of such securities to the Fund could </font><font face="Arial, Helvetica, sans-serif" size="2">decrease drastically.
Such events could make the Fund unable to execute its </font><font face="Arial, Helvetica, sans-serif" size="2">investment strategy. In addition, if the SEC were to adopt restrictions
</font><font face="Arial, Helvetica, sans-serif" size="2">regarding short sales, they could restrict the Fund's ability to engage in </font><font face="Arial, Helvetica, sans-serif" size="2">short sales in certain circumstances, and the Fund may be
unable to execute </font><font face="Arial, Helvetica, sans-serif" size="2">its investment strategies as a result. </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2">The SEC and regulatory authorities in other jurisdictions may adopt (and in certain cases, have adopted) bans on short sales of certain securities in response to market events. Bans on short
selling may make it impossible for the Fund to execute certain investment strategies and may have a material adverse effect on the Fund's ability to generate returns.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">Recently adopted rules implementing the credit risk retention requirements of the Dodd-Frank Act for asset-backed securities will require the sponsor of certain securitization vehicles (or a majority
owned affiliate of such sponsor) to retain, and to refrain from transferring, selling, conveying to a third party, or hedging 5% of the credit risk in assets transferred, sold, or conveyed through the issuance of the asset-backed securities of such
vehicle, subject to certain exceptions. The rules apply to offerings of residential mortgage-backed securities (RMBS) occurring on and after December 24, 2015 and to offerings of other types of asset-backed securities occurring on and after December
24, 2016, subject to certain exceptions. In addition, a refinancing of, or a significant amendment to, a securitization that closed prior to such date may in certain cases result in the application of the rules to a securitization that was
previously not subject to the Dodd-Frank risk retention requirements. The impact of the risk retention rules on the securitization markets is uncertain. These requirements may increase the costs to originators, securitizers, and, in certain cases,
collateral managers of securitization vehicles in which the Fund may invest, which costs could be passed along to such Fund as an investor in such vehicles. In addition, the costs imposed by the risk retention rules on originators, securitizers
and/or collateral managers may result in a reduction of the number of new offerings of asset-backed securities and thus in fewer investment opportunities for the Fund. A reduction in the number of new securitizations could also reduce liquidity in
the markets for certain types of financial assets that are typically held by securitization vehicles, which in turn could negatively affect the returns on the Fund's investment in asset-backed securities.</font></p>
<p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Regulatory Risk &#8211; Commodity Pool Operator<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The CFTC
has adopted regulations that subject registered investment </font><font face="Arial, Helvetica, sans-serif" size="2">companies and their investment advisers to regulation by the CFTC if the
</font><font face="Arial, Helvetica, sans-serif" size="2">registered investment company invests more than a prescribed level of its </font><font face="Arial, Helvetica, sans-serif" size="2">liquidation value in futures, options on futures or
commodities, swaps, or </font><font face="Arial, Helvetica, sans-serif" size="2">other financial instruments regulated under the Commodity Exchange Act </font><font face="Arial, Helvetica, sans-serif" size="2">("CEA") and the rules thereunder
("commodity interests"), or if the Fund </font><font face="Arial, Helvetica, sans-serif" size="2">markets itself as providing investment exposure to such instruments. The </font><font face="Arial, Helvetica, sans-serif" size="2">Investment Manager
is registered as a "commodity pool operator" ("CPO") </font><font face="Arial, Helvetica, sans-serif" size="2">under the CEA, however, with respect to the Fund, the Investment Manager </font><font face="Arial, Helvetica, sans-serif" size="2">has
claimed an exclusion from registration as a CPO pursuant to CFTC Rule </font><font face="Arial, Helvetica, sans-serif" size="2">4.5. For the Investment Manager to remain eligible for this exclusion, the </font><font
face="Arial, Helvetica, sans-serif" size="2">Fund must comply with certain limitations, including limits on its ability to </font><font face="Arial, Helvetica, sans-serif" size="2">use any commodity interests and limits on the manner in which the
Fund </font><font face="Arial, Helvetica, sans-serif" size="2">holds out its use of such commodity interests. These limitations may restrict </font><font face="Arial, Helvetica, sans-serif" size="2">the Fund's ability to pursue its investment
objectives and strategies, increase </font><font face="Arial, Helvetica, sans-serif" size="2">the costs of implementing its strategies, result in higher expenses for the </font><font face="Arial, Helvetica, sans-serif" size="2">Fund, and/or
adversely affect the Fund's total return. Further, in the event </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
<table width="100%">
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<td align="right" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">December 21, 2017 | <b>PROSPECTUS</b></FONT></p> </td>
<td align="right" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">67</FONT></p> </td> </tr> </table><hr style="size:3;color:#999999;width:100%;">
<DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
<tr>
<td align="left" width="29.5%" colspan="3"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
<tr>
<td align="left" width="29.5%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2">the Investment Manager becomes unable to rely on
the exclusion in CFTC </font><font face="Arial, Helvetica, sans-serif" size="2">Rule 4.5 with respect to the Fund and is required to register as a CPO with </font><font face="Arial, Helvetica, sans-serif" size="2">respect to the Fund, the Investment
Manager will be subject to additional </font><font face="Arial, Helvetica, sans-serif" size="2">regulation and its expenses may increase. </font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font
face="Arial, Helvetica, sans-serif" size="3"><b><b>Liquidity Risk</b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Liquidity risk exists when particular investments are difficult to purchase or sell at the time that the Fund
would like or at the price that the Fund believes such investments are currently worth. Many of the Fund's investments may be illiquid. Illiquid securities may become harder to value, especially in changing markets. The Fund's investments in
illiquid securities may reduce the returns of the Fund because it may be unable to sell the illiquid securities 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. 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. 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 corporate bonds, which provide a core indication of the ability of financial intermediaries to "make markets," are at or near historic lows in relation to market size. Because market
makers seek to provide stability to a market through their intermediary services, the significant reduction in dealer inventories could potentially lead to decreased liquidity and increased volatility in the fixed income markets. Such issues may be
exacerbated during periods of economic uncertainty. In such cases, the Fund, due to limitations on investments in illiquid securities and the difficulty in purchasing and selling such securities or instruments, may be unable to achieve its desired
level of exposure to a certain sector. To the extent that the Fund's principal investment strategies involve securities of companies with smaller market capitalizations, foreign (non-U.S.) securities, Rule 144A securities, senior loans, illiquid
sectors of fixed income securities, derivatives or securities with substantial market and/or credit risk, the Fund will tend to have the greatest exposure to liquidity risk. 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. 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. See "Principal Risks of the Fund&#8212;Valuation Risk."</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font
face="Arial, Helvetica, sans-serif" size="3"><b><b>Tax Risk<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund has elected to be treated as a "regulated investment company" </font><font
face="Arial, Helvetica, sans-serif" size="2">under the Code and intends each year to qualify and be eligible to be </font><font face="Arial, Helvetica, sans-serif" size="2">treated as such, so that it generally will not be subject to U.S. federal
</font><font face="Arial, Helvetica, sans-serif" size="2">income tax on its net investment income or net short-term or long-term </font><font face="Arial, Helvetica, sans-serif" size="2">capital gains, distributed (or deemed distributed, as
described below) to </font><font face="Arial, Helvetica, sans-serif" size="2">shareholders. In order to qualify for such treatment, the Fund must meet </font><font face="Arial, Helvetica, sans-serif" size="2">certain asset diversification tests and
at least 90% of its gross income for </font><font face="Arial, Helvetica, sans-serif" size="2">such year must consist of certain types of qualifying income. Foreign </font><font face="Arial, Helvetica, sans-serif" size="2">currency gains will
generally be treated as qualifying income for purposes of </font><font face="Arial, Helvetica, sans-serif" size="2">the 90% gross income requirement. However, the U.S. Treasury Department </font><font face="Arial, Helvetica, sans-serif" size="2">has
authority to issue regulations in the future that could treat some or all </font><font face="Arial, Helvetica, sans-serif" size="2">of the Fund's foreign currency gains as non-qualifying income, thereby </font><font
face="Arial, Helvetica, sans-serif" size="2">jeopardizing the Fund's status as a regulated investment company for all </font><font face="Arial, Helvetica, sans-serif" size="2">years to which the regulations are applicable. Income derived from some
</font><font face="Arial, Helvetica, sans-serif" size="2">commodity-linked derivatives is not qualifying income, and the treatment of </font><font face="Arial, Helvetica, sans-serif" size="2">income from some other commodity-linked derivatives is
uncertain, for </font><font face="Arial, Helvetica, sans-serif" size="2">purposes of the 90% gross income test. If for any taxable year the Fund </font><font face="Arial, Helvetica, sans-serif" size="2">were to fail to meet the income or
diversification test described above, the </font><font face="Arial, Helvetica, sans-serif" size="2">Fund could in some cases cure such failure, including by paying a fund-level </font><font face="Arial, Helvetica, sans-serif" size="2">tax and, in
the case of a diversification test failure, disposing of certain </font><font face="Arial, Helvetica, sans-serif" size="2">assets. </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">If, in any year, the Fund were to fail to qualify for treatment as a regulated investment company 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 a further tax to the extent of the Fund's current or accumulated earnings and profits.</font></p>
<p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Market Disruption and Geopolitical Risk</b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The wars with Iraq and
Afghanistan and similar conflicts and geopolitical developments, their aftermath and substantial military presence in Afghanistan, along with instability in North Korea, Pakistan, Egypt, Libya, Syria, Russia, Ukraine, Yemen and the Middle East,
possible terrorist attacks in the United States and around the world, growing social and political discord in the United States, the European debt crisis, the response of the international community&#8212;through economic sanctions and
otherwise&#8212;to Russia's recent annexation of the Crimea region of Ukraine and posture vis-a-vis Ukraine, further downgrade of U.S. Government securities, the outbreak of infectious diseases such as Ebola and other similar events may have
long-term effects on the U.S. and worldwide financial markets and may cause further economic uncertainties in the United States and worldwide. The potential costs of rebuilding infrastructure cannot be predicted with any certainty. Terrorist attacks
on the World Trade Center and the Pentagon on September 11, 2001 closed some of the U.S. securities markets for a four-day period and similar future events cannot be ruled out. The war and occupation, terrorism and related geopolitical risks have
led, and may in the future lead, to increased short-term market volatility and may have adverse long-term effects on U.S. and world economies and markets generally. Likewise, natural and environmental disasters, such as the earthquake and tsunami in
Japan in early 2011, and systemic market dislocations of the kind surrounding the insolvency of Lehman Brothers in 2008, if repeated, could be highly disruptive to economies and markets. Those events, as well as other changes in foreign and domestic
economic and political conditions also could have an acute effect on individual issuers or related groups of issuers. These risks also could adversely affect individual issuers and securities markets, interest rates, secondary trading, ratings,
credit risk, inflation, deflation and other factors relating to the Fund's investments and the market value and NAV of the Fund's Common Shares.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
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<td align="left" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">68 &#160;&#160;&#160;&#160; </FONT></p> </td>
<td align="left" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><b>PROSPECTUS</b> | PIMCO Dynamic Income Fund &#160;&#160;&#160;&#160; </FONT></p> </td> </tr>
</table><hr style="size:3;color:#999999;width:100%;"> <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;
</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
<tr>
<td align="right" width="29.5%" colspan="3"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
<tr>
<td align="right" width="29.5%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font
face="Arial, Helvetica, sans-serif" size="3"><b><b>Subsidiary Risk<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">By investing through its Subsidiaries, the Fund is exposed to the risks associated with the
Subsidiaries&#8217; investments. The Subsidiaries are not registered as investment companies under the 1940 Act and are not subject to all of the investor protections of the 1940 Act, although each Subsidiary is managed pursuant to the compliance
policies and procedures of the Fund applicable to it. 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 described in this
prospectus and could adversely affect the Fund.</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Portfolio Turnover Risk<br> </b></b></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">The Investment Manager manages the Fund without regard generally to restrictions on portfolio turnover. Trading in fixed income securities does not generally involve the payment of brokerage commissions,
but does involve indirect transaction costs. Higher portfolio turnover involves correspondingly greater expenses to the Fund, including brokerage commissions or dealer mark-ups and other transaction costs on the sale of securities and reinvestments
in other securities. The higher the rate of portfolio turnover of the Fund, the higher these transaction costs borne by the Fund generally will be. Such sales may result in realization of taxable capital gains (including short-term capital gains,
which are generally taxed to shareholders at ordinary income tax rates when distributed net of short-term capital losses and net long-term capital losses), and may adversely affect the Fund's after-tax returns. See "Tax Matters."</font></p>
<p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Operational Risk<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">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.</font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Cyber Security Risk<br> </b></b></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">As the use of technology has become more prevalent in the course of business, the Fund has become potentially more susceptible to operational and informational security risks resulting from breaches in
cyber security. A breach in cyber security refers to both intentional and unintentional cyber events 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. Cyber security breaches may involve unauthorized access to the Fund's digital information systems (e.g., through
"hacking" or malicious software coding), but may also result from outside attacks such as denial-of-service attacks (i.e., efforts to make network services unavailable to intended users). 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, 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. Moreover, cyber security 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.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Cyber security failures or breaches may result in financial losses to the Fund
</font><font face="Arial, Helvetica, sans-serif" size="2">and its shareholders. These failures or breaches may also result in </font><font face="Arial, Helvetica, sans-serif" size="2">disruptions to business operations, potentially resulting in
financial losses; </font><font face="Arial, Helvetica, sans-serif" size="2">interference with the Fund's ability to calculate its NAV, process shareholder </font><font face="Arial, Helvetica, sans-serif" size="2">transactions or otherwise transact
business with shareholders; impediments </font><font face="Arial, Helvetica, sans-serif" size="2">to trading; violations of applicable privacy and other laws; regulatory fines; </font><font face="Arial, Helvetica, sans-serif" size="2">penalties;
reputational damage; reimbursement or other compensation </font><font face="Arial, Helvetica, sans-serif" size="2">costs; additional compliance and cyber security risk management costs and
</font><font face="Arial, Helvetica, sans-serif" size="2">other adverse consequences. In addition, substantial costs may be incurred </font><font face="Arial, Helvetica, sans-serif" size="2">in an attempt to prevent any cyber incidents in the
future. </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Like with operational risk in general, the Fund has established risk management systems and business
continuity plans designed to reduce the risks associated with cyber security. However, there are inherent limitations in these plans and systems, including that certain risks may not have been identified, in large part because different or unknown
threats may emerge in the future. As such, there is no guarantee that such efforts will succeed, especially because the Fund does not directly control the cyber security systems of issuers in which the Fund may invest, trading counterparties or
third party service providers to the Fund. There is also a risk that cyber security breaches may not be detected. The Fund and its shareholders could be negatively impacted as a result.</font></p>
<p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Potential Conflicts of Interest Risk&#8212;Allocation of Investment Opportunities<br> </b></b></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Investment Manager is 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 Fund's 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 achieve profits on their trading for proprietary or other accounts. The Investment Manager has adopted policies and procedures reasonably designed to allocate investment opportunities on a fair and equitable basis
over time.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Repurchase Agreements Risk<br>
</b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">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. If the party agreeing to repurchase should default, the Fund will seek to sell the securities which it holds. This could involve
procedural costs or delays in addition to a loss on the securities if their value should fall below their repurchase price. Repurchase agreements maturing in more than seven days and which may not be terminated within seven days at approximately the
amount at which the Fund has valued the agreements are considered illiquid securities. These events could also trigger adverse tax consequences for the Fund.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p>
<p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Structured Investments Risk<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund may invest in
structured products, including, structured notes, </font><font face="Arial, Helvetica, sans-serif" size="2">credit-linked notes and other types of structured products. Holders of </font><font face="Arial, Helvetica, sans-serif" size="2">structured
products bear risks of the underlying investments, index or </font><font face="Arial, Helvetica, sans-serif" size="2">reference obligation and are subject to counterparty risk. The Fund may </font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
<table width="100%">
<tr>
<td align="right" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">December 21, 2017 | <b>PROSPECTUS</b></FONT></p> </td>
<td align="right" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">69</FONT></p> </td> </tr> </table><hr style="size:3;color:#999999;width:100%;">
<DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
<tr>
<td align="left" width="29.5%" colspan="3"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
<tr>
<td align="left" width="29.5%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2">have the right to receive payments only from the
structured product, and </font><font face="Arial, Helvetica, sans-serif" size="2">generally does not have direct rights against the issuer or the entity that </font><font face="Arial, Helvetica, sans-serif" size="2">sold the assets to be
securitized. While certain structured products enable </font><font face="Arial, Helvetica, sans-serif" size="2">the investor to acquire interests in a pool of securities without the </font><font face="Arial, Helvetica, sans-serif" size="2">brokerage
and other expenses associated with directly holding the same </font><font face="Arial, Helvetica, sans-serif" size="2">securities, investors in structured products generally pay their share of the </font><font
face="Arial, Helvetica, sans-serif" size="2">structured product's administrative and other expenses. Although it is </font><font face="Arial, Helvetica, sans-serif" size="2">difficult to predict whether the prices of indices and securities
underlying </font><font face="Arial, Helvetica, sans-serif" size="2">structured products will rise or fall, these prices (and, therefore, the prices of </font><font face="Arial, Helvetica, sans-serif" size="2">structured products) are generally
influenced by the same types of political </font><font face="Arial, Helvetica, sans-serif" size="2">and economic events that affect issuers of securities and capital markets </font><font face="Arial, Helvetica, sans-serif" size="2">generally. If the
issuer of a structured product uses shorter term financing to </font><font face="Arial, Helvetica, sans-serif" size="2">purchase longer term securities, the issuer may be forced to sell its securities </font><font
face="Arial, Helvetica, sans-serif" size="2">at below market prices if it experiences difficulty in obtaining such </font><font face="Arial, Helvetica, sans-serif" size="2">financing, which may adversely affect the value of the structured products
</font><font face="Arial, Helvetica, sans-serif" size="2">owned by the Fund. Structured products generally entail risks associated </font><font face="Arial, Helvetica, sans-serif" size="2">with derivative instruments. See "Principal Risks of the
Fund&#8212;Derivatives </font><font face="Arial, Helvetica, sans-serif" size="2">Risk." </font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Collateralized Loan Obligations
Risk<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund may invest in CLOs. A CLO is a trust typically collateralized by a pool of loans issued by banks, corporations or any other public or private entity or
person, which may include, among others, domestic and foreign senior secured loans, senior unsecured loans and subordinate or mezzanine loans, including loans that may be rated below investment grade or equivalent unrated loans. CLOs may charge
management fees and administrative expenses. The cash flows from the trust are split into two or more portions, called tranches, varying in risk and yield. The riskiest portion is the equity tranche which generally bears losses in connection with
the first defaults, if any, on the bonds or loans in the trust and serves to provide some measure of protection to the other, more senior tranches from defaults. A senior tranche from a CLO trust typically has higher ratings and lower yields than
the underlying securities, and can be rated investment grade. Despite the protection from the equity tranche, CLO tranches can experience substantial losses due to actual defaults, increased sensitivity to defaults due to collateral default and
disappearance of protecting tranches, market anticipation of defaults and aversion to CLO securities as a class. The risks of an investment in a CLO depend largely on the type of the collateral securities and the class of the CLO in which the Fund
invests. Normally, CLOs are privately offered and sold, and thus are not registered under the securities laws. As a result, investments in CLOs may be characterized by the Fund as illiquid securities; however, an active dealer market may exist for
CLOs allowing a CLO to qualify under Rule 144A under the 1933 Act. In addition to the normal risks associated with debt instruments (e.g., interest rate risk and credit risk), CLOs carry additional risks including, but not limited to: (i) the
possibility that distributions from the collateral will not be adequate to make interest or other payments; (ii) the quality of the collateral may decline in value or default; (iii) the risk that the Fund may invest in CBOs, CLOs or other CDOs that
are subordinate to other classes; and (iv) the complex structure of the security may not be fully understood at the time of investment and may produce disputes with the issuer or others and may produce unexpected investment results.</font></p>
<p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Rule 144A Securities</b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund may invest in securities that have
not been registered for public sale, but that are eligible for purchase and sale pursuant to Rule 144A under the 1933 Act. Rule 144A permits certain qualified institutional buyers, such as the Fund, to trade in privately placed securities that have
not been registered for sale under the 1933 Act. Rule 144A securities may be deemed illiquid, although the Fund may determine that certain Rule 144A securities are liquid in accordance with procedures adopted by the Board of Trustees.</font></p>
<p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Certain Affiliations<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">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. 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.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Anti-Takeover Provisions<br>
</b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund's Amended and Restated Agreement and Declaration of Trust (the "Declaration") 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." These provisions in the Declaration could have the effect of depriving the Common Shareholders of opportunities to
sell their Common Shares at a premium over the then-current market price of the Common Shares or at NAV.</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Fund Distribution
Rates</b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Although the Fund may seek to maintain stable distributions, 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. There can be no assurance that a change in market conditions or other factors will not result in a change in the Fund's distribution
rate or that the rate will be sustainable in the future.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">For instance, during periods of low or declining interest
rates, the Fund's distributable income and dividend levels may decline for many reasons. For example, the Fund may have to deploy uninvested assets (whether from purchases of Fund shares, proceeds from matured, traded or called debt obligations or
other sources) in new, lower yielding instruments. Additionally, payments from certain instruments that may be held by the Fund (such as variable and floating rate securities) may be negatively impacted by declining interest rates, which may also
lead to a decline in the Fund's distributable income and dividend levels.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
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<td align="left" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><b>PROSPECTUS</b> | PIMCO Dynamic Income Fund &#160;&#160;&#160;&#160; </FONT></p> </td> </tr>
</table><hr style="size:3;color:#999999;width:100%;"> <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;
</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p><a name="chapter_12_4636"></A><a name="chapter_12-sect1_1_4636"></A>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
<tr>
<td align="right" width="29.5%" colspan="3"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
<tr>
<td align="right" width="29.5%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font
face="Arial, Helvetica, sans-serif" size="3"><b>How the Fund Manages Risk<br> </b></font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b>Investment Limitations</b></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">The Fund has adopted certain investment limitations designed to limit investment risk and maintain portfolio diversification. These limitations are fundamental and may not be changed without the approval
of the holders of a majority of the outstanding Common Shares. The Fund may not:</font></p> <p style="padding:0;margin:0;">
<div face="Arial, Helvetica, sans-serif" size="2" style="padding-left:8;position: absolute; height:1em; text-align:left; margin:0;valing:top;">&#9632;</div>
<p style="padding-left:24;margin:0;"><font face="Arial, Helvetica, sans-serif" size="2">Purchase any security if as a result 25% or more of the Fund's total assets (taken at current value at the time of investment) would be invested in a single
industry (for purposes of this restriction, investment companies are not considered to be part of any industry). As a fundamental policy, the Fund, under normal circumstances, will invest at least 25% of its total assets in mortgage-related
securities not issued or guaranteed as to principal or interest by the U.S. Government or its agencies or instrumentalities and other investments that the Fund's investment adviser or sub-adviser determines have the same primary economic
characteristics.</font></p> <p></p> <p style="padding:0;margin:0;"> <div face="Arial, Helvetica, sans-serif" size="2" style="padding-left:8;position: absolute; height:1em; text-align:left; margin:0;valing:top;">&#9632;</div>
<p style="padding-left:24;margin:0;"><font face="Arial, Helvetica, sans-serif" size="2">Purchase or sell real estate, although it may purchase securities secured by real estate or interests therein, or securities issued by companies that invest in
real estate, or interests therein.</font></p> <p></p> <p style="padding:0;margin:0;"> <div face="Arial, Helvetica, sans-serif" size="2" style="padding-left:8;position: absolute; height:1em; text-align:left; margin:0;valing:top;">&#9632;</div>
<p style="padding-left:24;margin:0;"><font face="Arial, Helvetica, sans-serif" size="2">Purchase or sell commodities or commodities contracts or oil, gas or mineral programs. This restriction shall not prohibit the Fund, subject to restrictions
described in this Prospectus and in the Statement of Additional Information, from purchasing, selling or entering into futures contracts, options on futures contracts, forward contracts, or any interest rate, securities-related or other derivative
instrument, including swap agreements and other derivative instruments, subject to compliance with any applicable provisions of the federal securities or commodities laws.</font></p> <p></p> <p style="padding:0;margin:0;">
<div face="Arial, Helvetica, sans-serif" size="2" style="padding-left:8;position: absolute; height:1em; text-align:left; margin:0;valing:top;">&#9632;</div>
<p style="padding-left:24;margin:0;"><font face="Arial, Helvetica, sans-serif" size="2">Borrow money or issue any senior security, except to the extent permitted under the 1940 Act, as interpreted, modified, or otherwise permitted from time to time
by regulatory authority having jurisdiction.</font></p> <p></p> <p style="padding:0;margin:0;">
<div face="Arial, Helvetica, sans-serif" size="2" style="padding-left:8;position: absolute; height:1em; text-align:left; margin:0;valing:top;">&#9632;</div> <p style="padding-left:24;margin:0;"><font face="Arial, Helvetica, sans-serif" size="2">Make
loans, except to the extent permitted under the 1940 Act, and as interpreted, modified, or otherwise permitted by regulatory authority having jurisdiction.</font></p> <p></p> <p style="padding:0;margin:0;">
<div face="Arial, Helvetica, sans-serif" size="2" style="padding-left:8;position: absolute; height:1em; text-align:left; margin:0;valing:top;">&#9632;</div> <p style="padding-left:24;margin:0;"><font face="Arial, Helvetica, sans-serif" size="2">Act
as an underwriter of securities of other issuers, except to the extent that in connection with the disposition of portfolio securities, it may be deemed to be an underwriter under the federal securities laws.</font></p> <p></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">See "Investment Objectives and Policies" and "Investment Restrictions" in the Statement of Additional Information for a complete list of
the fundamental investment policies of the Fund.</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b>Management of Investment Portfolio and Capital Structure to Limit Leverage
Risk</b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund may take certain actions if short-term interest rates increase or </font><font face="Arial, Helvetica, sans-serif" size="2">market conditions otherwise change (or the
Fund anticipates such an </font><font face="Arial, Helvetica, sans-serif" size="2">increase or change) and the Fund's leverage begins (or is expected) to </font><font face="Arial, Helvetica, sans-serif" size="2">adversely affect Common Shareholders.
In order to attempt to offset such a </font><font face="Arial, Helvetica, sans-serif" size="2">negative impact of leverage on Common Shareholders, the Fund may </font><font face="Arial, Helvetica, sans-serif" size="2">shorten the average maturity or
duration of its investment portfolio (by </font><font face="Arial, Helvetica, sans-serif" size="2">investing in short-term, high quality securities or implementing certain </font><font face="Arial, Helvetica, sans-serif" size="2">hedging
strategies). The Fund also may attempt to reduce leverage by </font><font face="Arial, Helvetica, sans-serif" size="2">redeeming or otherwise purchasing any preferred shares that may be
</font><font face="Arial, Helvetica, sans-serif" size="2">outstanding or by reducing any holdings in other instruments that create </font><font face="Arial, Helvetica, sans-serif" size="2">leverage. As explained above under "Principal Risks of the
Fund&#8212;Leverage </font><font face="Arial, Helvetica, sans-serif" size="2">Risk," the success of any such attempt to limit leverage risk depends on </font><font face="Arial, Helvetica, sans-serif" size="2">PIMCO's ability to accurately predict
interest rate or other market changes. </font><font face="Arial, Helvetica, sans-serif" size="2">Because of the difficulty of making such predictions, the Fund may not be </font><font face="Arial, Helvetica, sans-serif" size="2">successful in
managing its interest rate exposure in the manner described </font><font face="Arial, Helvetica, sans-serif" size="2">above. If market conditions suggest that additional leverage would be
</font><font face="Arial, Helvetica, sans-serif" size="2">beneficial, the Fund may issue preferred shares or utilize other forms of </font><font face="Arial, Helvetica, sans-serif" size="2">leverage, such as reverse repurchase agreements, credit
default swaps, </font><font face="Arial, Helvetica, sans-serif" size="2">dollar rolls and other derivative instruments. See "Investment Objectives </font><font face="Arial, Helvetica, sans-serif" size="2">and Policies&#8212;Portfolio Contents" and
"Principal Risks of the Fund&#8212; </font><font face="Arial, Helvetica, sans-serif" size="2">Liquidity Risk." </font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b>Hedging and
Related Strategies</b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund may (but is not required to) use various investment strategies to </font><font face="Arial, Helvetica, sans-serif" size="2">seek exposure to foreign
currencies, or attempt to hedge exposure to </font><font face="Arial, Helvetica, sans-serif" size="2">reduce the risk of loss and preserve capital, due to fluctuations in currency </font><font face="Arial, Helvetica, sans-serif" size="2">exchange
rates relative to the U.S. dollar. See "The Fund's Investment </font><font face="Arial, Helvetica, sans-serif" size="2">Objective and Strategies&#8212;Portfolio Contents and Other Information&#8212; </font><font
face="Arial, Helvetica, sans-serif" size="2">Foreign Currencies and Related Transactions." The Fund may also purchase </font><font face="Arial, Helvetica, sans-serif" size="2">credit default swaps for the purpose of hedging the Fund's credit
exposure </font><font face="Arial, Helvetica, sans-serif" size="2">to certain issuers and, thereby, seek to decrease its exposure to credit risk, </font><font face="Arial, Helvetica, sans-serif" size="2">and it may invest in structured notes or
interest rate futures contracts or </font><font face="Arial, Helvetica, sans-serif" size="2">swap, cap, floor or collar transactions for the purpose of reducing the </font><font face="Arial, Helvetica, sans-serif" size="2">interest rate sensitivity
of the Fund's portfolio and, thereby, seek to decrease </font><font face="Arial, Helvetica, sans-serif" size="2">the Fund's exposure to interest rate risk. See "Portfolio Contents&#8212;Credit
</font><font face="Arial, Helvetica, sans-serif" size="2">Default Swaps," "Portfolio Contents&#8212;Structured Notes and Related </font><font face="Arial, Helvetica, sans-serif" size="2">Instruments" and "Portfolio Contents&#8212;Certain Interest
Rate Transactions" </font><font face="Arial, Helvetica, sans-serif" size="2">in this prospectus. Other derivatives strategies and instruments that the </font><font face="Arial, Helvetica, sans-serif" size="2">Fund may use include without limitation:
financial futures contracts; short </font><font face="Arial, Helvetica, sans-serif" size="2">sales; other types of swap agreements or options thereon; options on </font><font face="Arial, Helvetica, sans-serif" size="2">financial futures; and
options based on either an index or individual debt </font><font face="Arial, Helvetica, sans-serif" size="2">securities whose prices, PIMCO believes, correlate with the prices of the </font><font face="Arial, Helvetica, sans-serif" size="2">Fund's
investments. Income earned by the Fund from its hedging and </font><font face="Arial, Helvetica, sans-serif" size="2">related transactions may be subject to one or more special U.S. federal
</font><font face="Arial, Helvetica, sans-serif" size="2">income tax rules that can affect the amount, timing or character of </font><font face="Arial, Helvetica, sans-serif" size="2">distributions to, and taxes payable by, Common Shareholders. For
instance, </font><font face="Arial, Helvetica, sans-serif" size="2">income earned by the Fund from its foreign currency hedging activities, if </font><font face="Arial, Helvetica, sans-serif" size="2">any, may give rise to ordinary income that, to
the extent not offset by losses </font><font face="Arial, Helvetica, sans-serif" size="2">from such activities, may be distributed to Common Shareholders and </font><font face="Arial, Helvetica, sans-serif" size="2">taxable at ordinary income rates.
Therefore, any foreign currency hedging </font><font face="Arial, Helvetica, sans-serif" size="2">activities by the Fund can increase the amount of distributions taxable to </font><font face="Arial, Helvetica, sans-serif" size="2">Common
Shareholders as ordinary income. See "Taxation" in the Statement </font><font face="Arial, Helvetica, sans-serif" size="2">of Additional Information. There is no assurance that these hedging
</font><font face="Arial, Helvetica, sans-serif" size="2">strategies will be available at any time or that PIMCO will determine to use </font><font face="Arial, Helvetica, sans-serif" size="2">them for the Fund or, if used, that the strategies will
be successful. PIMCO </font><font face="Arial, Helvetica, sans-serif" size="2">may determine not to engage in hedging strategies or to do so only in </font><font face="Arial, Helvetica, sans-serif" size="2">unusual circumstances or market
conditions. In addition, the Fund may be </font><font face="Arial, Helvetica, sans-serif" size="2">subject to certain restrictions on its use of hedging strategies imposed by </font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
<table width="100%">
<tr>
<td align="left" width="50%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><br>
<img src="g450385pr4636img005.jpg"><br></FONT></p> </td>
<td align="right" width="46.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">PIMCO Dynamic Income Fund | <b>PROSPECTUS</b></FONT></p> </td>
<td align="right" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">71</FONT></p> </td> </tr> </table><hr style="size:3;color:#999999;width:100%;">
<DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
<tr>
<td align="left" width="29.5%" colspan="3"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
<tr>
<td align="left" width="29.5%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2">guidelines of one or more ratings agencies that
may issue ratings on any </font><font face="Arial, Helvetica, sans-serif" size="2">preferred shares issued by the Fund. </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
<table width="100%">
<tr>
<td align="left" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">72 &#160;&#160;&#160;&#160; </FONT></p> </td>
<td align="left" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><b>PROSPECTUS</b> | PIMCO Dynamic Income Fund &#160;&#160;&#160;&#160; </FONT></p> </td> </tr>
</table><hr style="size:3;color:#999999;width:100%;"> <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;
</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p><a name="chapter_13_4636"></A><a name="chapter_13-sect1_1_4636"></A>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
<tr>
<td align="right" width="29.5%" colspan="3"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
<tr>
<td align="right" width="29.5%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font
face="Arial, Helvetica, sans-serif" size="3"><b>Management of the Fund<br> </b></font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b>Trustees and Officers<br> </b></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Board is responsible for the management of the Fund, including supervision of the duties performed by the Investment Manager. There
are currently eight trustees of the Fund, two of whom are treated by the Fund as "interested persons" (as defined in the 1940 Act). The names and business addresses of the trustees and officers of the Fund and their principal occupations and other
affiliations during the past five years are set forth under "Management of the Fund" in the Statement of Additional Information.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p>
<p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b>Investment Manager<br> </b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">PIMCO serves as the investment manager of 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.</font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">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 registered investment companies. PIMCO is a majority-owned indirect subsidiary of Allianz SE, a publicly traded European insurance and financial services
company. As of&#160;September 30, 2017, PIMCO had approximately $1.68 trillion in assets under management.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The
following individuals are jointly and primarily responsible for the day-to-day management of the Fund.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p>
<table margin="0" cellspacing="0" cellpadding="6" border="0px" width="100%">
<tr>
<td valign="top" align="left" width="15%"> <p style="padding:0;margin-top:2;margin-bottom:0;"><font face="Arial, Helvetica, sans-serif" size="1"><b> Portfolio Manager </b></font></p> </td>
<td valign="top" align="left" width="14.5%"> <p style="padding:0;margin-top:2;margin-bottom:0;"><font face="Arial, Helvetica, sans-serif" size="1"><b> Since </b></font></p> </td>
<td valign="top" align="left" width="25%"> <p style="padding:0;margin-top:2;margin-bottom:0;"><font face="Arial, Helvetica, sans-serif" size="1"><b> Title </b></font></p> </td>
<td valign="top" align="left" width="45.5%"> <p style="padding:0;margin-top:2;margin-bottom:0;"><font face="Arial, Helvetica, sans-serif" size="1"><b> Recent Professional Experience </b></font></p> </td> </tr>
<tr style="background-color:#d6f7fa;">
<td valign="top" align="left" width="15%"> <p style="padding:0;margin-top:2;margin-bottom:0;"><font face="Arial, Helvetica, sans-serif" size="1"> Daniel J. Ivascyn </font></p> </td>
<td valign="top" align="left" width="14.5%"> <p style="padding:0;margin-top:2;margin-bottom:0;"><font face="Arial, Helvetica, sans-serif" size="1"> 2012 (Inception) </font></p> </td>
<td valign="top" align="left" width="25%"> <p style="padding:0;margin-top:2;margin-bottom:0;"><font face="Arial, Helvetica, sans-serif" size="1"> Group Chief Investment Officer </font></p> </td>
<td valign="top" align="left" width="45.5%"> <p style="padding:0;margin-top:2;margin-bottom:0;"><font face="Arial, Helvetica, sans-serif" size="1"> Mr. Ivascyn joined PIMCO in 1998, previously having been associated with Bear Stearns in the
asset-backed securities group as well as with T. Rowe Price and Fidelity Investments. Mr. Ivascyn has twenty years of investment experience and holds a degree in economics from Occidental College and an MBA in analytic finance from the University of
Chicago Graduate School of Business. </font></p> </td> </tr>
<tr>
<td valign="top" align="left" width="15%"> <p style="padding:0;margin-top:2;margin-bottom:0;"><font face="Arial, Helvetica, sans-serif" size="1"> Joshua Anderson </font></p> </td>
<td valign="top" align="left" width="14.5%"> <p style="padding:0;margin-top:2;margin-bottom:0;"><font face="Arial, Helvetica, sans-serif" size="1"> 2012 (Inception) </font></p> </td>
<td valign="top" align="left" width="25%"> <p style="padding:0;margin-top:2;margin-bottom:0;"><font face="Arial, Helvetica, sans-serif" size="1"> Portfolio Manager, Opportunistic Mortgage and Real Estate </font></p> </td>
<td valign="top" align="left" width="45.5%"> <p style="padding:0;margin-top:2;margin-bottom:0;"><font face="Arial, Helvetica, sans-serif" size="1"> Prior to joining PIMCO in 2003, Mr. Anderson was an analyst at Merrill Lynch covering both the
residential ABS and collateralized debt obligation sectors. He was previously a portfolio manager at Merrill Lynch Investment Managers. He has 17 years of investment experience and holds an MBA from the State University of New York, Buffalo.
</font></p> </td> </tr>
<tr style="background-color:#d6f7fa;">
<td valign="top" align="left" width="15%"> <p style="padding:0;margin-top:2;margin-bottom:0;"><font face="Arial, Helvetica, sans-serif" size="1"> Alfred T. Murata </font></p> </td>
<td valign="top" align="left" width="14.5%"> <p style="padding:0;margin-top:2;margin-bottom:0;"><font face="Arial, Helvetica, sans-serif" size="1"> 2012 (Inception) </font></p> </td>
<td valign="top" align="left" width="25%"> <p style="padding:0;margin-top:2;margin-bottom:0;"><font face="Arial, Helvetica, sans-serif" size="1"> Portfolio Manager, Mortgage Credit </font></p> </td>
<td valign="top" align="left" width="45.5%"> <p style="padding:0;margin-top:2;margin-bottom:0;"><font face="Arial, Helvetica, sans-serif" size="1"> Prior to joining PIMCO in 2001, Mr. Murata researched and implemented exotic equity and interest-rate
derivatives at Nikko Financial Technologies. He has 13 years of investment experience and holds a Ph.D. in engineering economic systems and operations research from Stanford University. He also earned a J.D. from Stanford Law School and is a member
of the State Bar of California. </font></p> </td> </tr></table> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Statement of Additional Information provides additional
information about the portfolio managers' compensation, other accounts managed by the portfolio managers and the portfolio managers' ownership of securities in the Fund.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p>
<p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b>Control Persons<br> </b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">A control person is a person who owns, either
directly or indirectly, beneficially more than 25% of the voting securities of a company. As of September 30, 2017, the Fund did not know of any person or entity who "controlled" the Fund.</font></p>
<p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b>Additional Information<br> </b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Trustees are responsible generally for
overseeing the management of the Fund. The Trustees authorize the Fund to enter into service agreements with the Investment Manager and other service providers in order to provide, and in some cases authorize service providers to procure through
other parties, necessary or desirable services on behalf of the Fund. Shareholders are not intended to be third-party beneficiaries of such service agreements.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">Neither this prospectus, the Fund's Statement of Additional Information, any contracts filed as exhibits to the Fund's registration statement, nor any other communications or disclosure documents from or
on behalf of the Fund creates a contract between a shareholder of the Fund and the Fund, a service provider to the Fund, and/or the Trustees or officers of the Fund. The Trustees may amend this prospectus, the Statement of Additional Information,
and any other contracts to which the Fund is a party, and interpret the investment objective(s), policies, restrictions and contractual provisions applicable to the Fund without shareholder input or approval, except in circumstances in which
shareholder approval is specifically required by law (such changes to fundamental investment policies) or where a shareholder approval requirement is specifically disclosed in the Fund's prospectus or Statement of Additional Information.</font></p>
<p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b>Investment Management Agreement<br> </b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Pursuant to an investment
management agreement between the Investment Manager and the Fund (the "Investment Management Agreement"), the Fund </font><font face="Arial, Helvetica, sans-serif" size="2">has agreed to pay the Investment Manager an annual fee, payable monthly, in
an amount equal to 1.15% of the Fund's average daily "total managed </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
<table width="100%">
<tr>
<td align="left" width="50%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><br>
<img src="g450385pr4636img005.jpg"><br></FONT></p> </td>
<td align="right" width="46.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">PIMCO Dynamic Income Fund | <b>PROSPECTUS</b></FONT></p> </td>
<td align="right" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">73</FONT></p> </td> </tr> </table><hr style="size:3;color:#999999;width:100%;">
<DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
<tr>
<td align="left" width="29.5%" colspan="3"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
<tr>
<td align="left" width="29.5%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2">assets," for the services rendered, for the
facilities it provides and for certain expenses borne by the Investment Manager pursuant to the Investment </font><font face="Arial, Helvetica, sans-serif" size="2">Management Agreement. Total managed assets includes total assets of the Fund
(including assets attributable to any reverse repurchase agreements, dollar </font><font face="Arial, Helvetica, sans-serif" size="2">rolls, borrowings and preferred shares that may be outstanding) minus accrued liabilities (other than liabilities
representing reverse repurchase agreements, </font><font face="Arial, Helvetica, sans-serif" size="2">dollar rolls and borrowings). For purposes of calculating total managed assets, the Fund's derivative investments will be valued based on their
market value. </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Pursuant to the Investment Management Agreement, PIMCO shall provide to the Fund investment guidance and policy direction in connection with the management of the Fund,
including oral and written research, analysis, advice and statistical and economic data and information. In addition, under the terms of the Investment Management Agreement, subject to the general supervision of the Board of Trustees, PIMCO shall
provide or cause to be furnished all supervisory and administrative and other services reasonably necessary for the operation of the Fund under what is essentially an all-in fee structure, including but not limited to the supervision and
coordination of matters relating to the operation of the Fund, including any necessary coordination among the custodian, transfer agent, dividend disbursing agent, and recordkeeping agent (including pricing and valuation of the Fund), accountants,
attorneys, auction agents and other parties performing services or operational functions for the Fund; the provision of adequate personnel, office space, communications facilities, and other facilities necessary for the effective supervision and
administration of the Fund, as well as the services of a sufficient number of persons competent to perform such supervisory and administrative and clerical functions as are necessary for compliance with federal securities laws and other applicable
laws; the maintenance of the books and records of the Fund; the preparation of all federal, state, local and foreign tax returns and reports for the Fund; the provision of administrative services to shareholders for the Fund including the
maintenance of a shareholder information telephone number, the provision of certain statistical information and performance of the Fund, an internet website (if requested), and maintenance of privacy protection systems and procedures; the
preparation and filing of such registration statements and other documents with such authorities as may be required to register and maintain the listing of the shares of the Fund; the taking of other such actions as may be required by applicable law
(including establishment and maintenance of a compliance program for the Fund); and the preparation, filing and distribution of proxy materials, periodic reports to shareholders and other regulatory filings.</font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">In addition, under the Investment Management Agreement, PIMCO will procure, at its own expense, the following services, and will bear
expenses associated with the following for the Fund: a custodian or custodians for the Fund to provide for the safekeeping of the Fund's assets; a recordkeeping agent to maintain the portfolio accounting records for the Fund; a transfer agent for
the Fund; a dividend disbursing agent and/or registrar for the Fund; all audits by the Fund's independent public accountant (except fees to auditors associated with satisfying rating agency requirements for preferred shares or other securities
issued by the Fund and other related requirements in the Fund's organizational documents); valuation services; maintaining the Fund's tax records; all costs and/or fees incident to meetings of the Fund's shareholders, the preparation, printing and
mailing of the Fund's prospectuses (although the Fund will bear such expenses in connection with the offerings made pursuant to this prospectus as noted below) notices and proxy statements, press releases and reports to its Shareholders, the filing
of reports with regulatory bodies, the maintenance of the Fund's existence and qualification to do business, the expense of issuing, redeeming, registering and qualifying for sale, common shares with the federal and state securities authorities, and
the expense of qualifying and listing Shares with any securities exchange or other trading system; legal services (except for extraordinary legal expenses); costs of printing certificates representing Shares of the Fund; the Fund's pro rata portion
of its fidelity bond and other insurance premiums; and association membership dues.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund (and not PIMCO) will be
responsible for certain fees and expenses that are not covered by the unified fee under the Investment Management Agreement. These include fees and expenses, including travel expenses, and fees and expenses of legal counsel retained for their
benefit, of Trustees who are not officers, employees, partners, shareholders or members of PIMCO or its subsidiaries or affiliates; the salaries and other compensation or expenses, including travel expenses, of the Fund's executive officers and
employees, if any, who are not officers, directors, shareholders, members, partners or employees of PIMCO or its subsidiaries or affiliates; taxes and governmental fees, if any, levied against the Fund; brokerage fees and commissions, and other
portfolio transaction expenses incurred by or for the Fund (including, without limitation, fees and expenses of outside legal counsel or third-party consultants retained in connection with reviewing, negotiating and structuring specialized loan and
other investments made by the Fund, subject to specific or general authorization by the Fund's Board of Trustees); expenses of the Fund's securities lending (if any), including any securities lending agent fees, as governed by a separate securities
lending agreement; costs, including interest expenses, of borrowing money or engaging in other types of leverage financing (including, without limitation, through the use by the Fund of reverse repurchase agreements, tender option bonds, bank
borrowings and credit facilities); costs, including dividend and/or interest expenses and other costs (including, without limitation, offering and related legal costs, fees to brokers, fees to auction agents, fees to transfer agents, fees to ratings
agencies and fees to auditors associated with satisfying ratings agency requirements for preferred shares or other securities issued by the Fund and other related requirements in a Fund's organizational documents) associated with the Fund's
issuance, offering, redemption and maintenance of preferred shares, commercial paper or other senior securities for the purpose of incurring leverage; fees and expenses of any underlying funds or other pooled vehicles in which the Fund invests;
dividend and interest expenses on short positions taken by the Fund; organizational and offering expenses of the Fund, including with respect to share offerings following the Fund's initial offering, such as rights and shelf offerings (including
expenses associated with offerings made pursuant to this prospectus), and expenses associated with tender offers and other share repurchases and redemptions; extraordinary expenses, including extraordinary legal expenses as may arise, including
expenses incurred in connection with litigation, proceedings, other claims, and the legal obligations of the Fund to indemnify its Trustees, officers, employees, shareholders, distributors, and agents with respect thereto; and expenses of the Fund
which are capitalized in accordance with generally accepted accounting principles.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
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<td align="left" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">74 &#160;&#160;&#160;&#160; </FONT></p> </td>
<td align="left" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><b>PROSPECTUS</b> | PIMCO Dynamic Income Fund &#160;&#160;&#160;&#160; </FONT></p> </td> </tr>
</table><hr style="size:3;color:#999999;width:100%;"> <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;
</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
<tr>
<td align="right" width="29.5%" colspan="3"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
<tr>
<td align="right" width="29.5%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2">Because the fees received by the Investment
Manager are based on the total managed assets of the Fund (including any assets attributable to any reverse repurchase agreements, dollar rolls, borrowings and preferred shares that may be outstanding), the Investment Manager has a financial
incentive for the Fund to utilize reverse repurchase agreements, dollar rolls and borrowings, or to issue preferred shares, which may create a conflict of interest between the Investment Manager, on the one hand, and the holders of the Fund's Common
Shares, on the other hand.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">A discussion regarding the basis for the Board's most recent continuation of the Investment
Management Agreement is available in the Fund's annual report to shareholders for the fiscal year ended June 30, 2017.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
<table width="100%">
<tr>
<td align="right" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">December 21, 2017 | <b>PROSPECTUS</b></FONT></p> </td>
<td align="right" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">75</FONT></p> </td> </tr> </table><hr style="size:3;color:#999999;width:100%;">
<DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;
</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p><a name="chapter_14_4636"></A><a name="chapter_14-sect1_1_4636"></A>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
<tr>
<td align="left" width="29.5%" colspan="3"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
<tr>
<td align="left" width="29.5%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table>
<p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b>Net Asset Value<br> </b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The NAV of the Fund's Common Shares is determined
by dividing the total value of the Fund's portfolio investments and other assets, less any liabilities, by the total number of shares outstanding.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">On each day that the NYSE is open, Fund shares are ordinarily valued as of the close of regular trading ("NYSE Close"). Information that becomes known to the Fund or its agents after the time as of which
NAV has been calculated on a particular day will not generally be used to retroactively adjust the price of a security or the NAV determined earlier that day. The Fund reserves the right to change the time as of which its NAV is calculated if the
Fund closes earlier, or as permitted by the SEC.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">For purposes of calculating NAV, portfolio securities and other
assets for which market quotes are readily available are valued at market value. Market value is generally determined on the basis of official closing prices or the last reported sales prices, or if no sales are reported, based on quotes obtained
from established market makers or prices (including evaluated prices) supplied by the Fund's approved pricing services, quotation reporting systems and other third-party sources (together, "Pricing Services"). The Fund will normally use pricing data
for domestic equity securities received shortly after the NYSE Close and does not normally take into account trading, clearances or settlements that take place after the NYSE Close. If market value pricing is used, a foreign (non-U.S.) equity
security traded on a foreign exchange or on more than one exchange is typically valued using pricing information from the exchange considered by PIMCO to be the primary exchange. A foreign (non-U.S.) equity security will be valued as of the close of
trading on the foreign exchange, or the NYSE Close, if the NYSE Close occurs before the end of trading on the foreign exchange. Domestic and foreign (non-U.S.) fixed income securities, non-exchange traded derivatives, and equity options are normally
valued on the basis of quotes obtained from brokers and dealers or Pricing Services using data reflecting the earlier closing of the principal markets for those securities. Prices obtained from Pricing Services may be based on, among other things,
information provided by market makers or estimates of market values obtained from yield data relating to investments or securities with similar characteristics. Certain fixed income securities purchased on a delayed-delivery basis are marked to
market daily until settlement at the forward settlement date. Exchange-traded options, except equity options, futures and options on futures are valued at the settlement price determined by the relevant exchange. Swap agreements are valued on the
basis of bid quotes obtained from brokers and dealers or market-based prices supplied by Pricing Services. With respect to any portion of the Fund's assets that are invested in one or more open-end management investment companies (other than ETFs),
the Fund's NAV will be calculated based upon the NAVs of such investments.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">If a foreign (non-U.S.) equity security's
value has materially changed after </font><font face="Arial, Helvetica, sans-serif" size="2">the close of the security's primary exchange or principal market but before </font><font face="Arial, Helvetica, sans-serif" size="2">the NYSE Close, the
security may be valued at fair value based on </font><font face="Arial, Helvetica, sans-serif" size="2">procedures established and approved by the Board. Foreign (non-U.S.) </font><font face="Arial, Helvetica, sans-serif" size="2">equity securities
that do not trade when the NYSE is open are also valued at </font><font face="Arial, Helvetica, sans-serif" size="2">fair value. With respect to foreign (non-U.S.) equity securities, the Fund may </font><font
face="Arial, Helvetica, sans-serif" size="2">determine the fair value of investments based on information provided by </font><font face="Arial, Helvetica, sans-serif" size="2">Pricing Services and other third-party vendors, which may recommend fair
</font><font face="Arial, Helvetica, sans-serif" size="2">value or adjustments with reference to other securities, indices or assets. In </font><font face="Arial, Helvetica, sans-serif" size="2">considering whether fair valuation is required and in
determining fair </font><font face="Arial, Helvetica, sans-serif" size="2">values, the Fund may, among other things, consider significant events </font><font face="Arial, Helvetica, sans-serif" size="2">(which may be considered to include changes in
the value of U.S. securities </font><font face="Arial, Helvetica, sans-serif" size="2">or securities indices) that occur after the close of the relevant market and </font><font face="Arial, Helvetica, sans-serif" size="2">before the NYSE Close. The
Fund may utilize modeling tools provided by </font><font face="Arial, Helvetica, sans-serif" size="2">third-party vendors to determine fair values of non-U.S. securities. Foreign </font><font face="Arial, Helvetica, sans-serif" size="2">(non-U.S.)
exchanges may permit trading in foreign (non-U.S.) equity </font><font face="Arial, Helvetica, sans-serif" size="2">securities on days when the Fund is not open for business, which may result
</font><font face="Arial, Helvetica, sans-serif" size="2">in the Fund's portfolio investments being affected when shareholders are </font><font face="Arial, Helvetica, sans-serif" size="2">unable to buy or sell shares. </font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Senior secured floating rate loans for which an active secondary market exists to a reliable degree will be valued at the mean of the last
available bid/ask prices in the market for such loans, as provided by a Pricing Service. Senior secured floating rate loans for which an active secondary market does not exist to a reliable degree will be valued at fair value, which is intended to
approximate market value. In valuing a senior secured floating rate loan at fair value, the factors considered may include, but are not limited to, the following: (a) the creditworthiness of the borrower and any intermediate participants, (b) the
terms of the loan, (c) recent prices in the market for similar loans, if any, and (d) recent prices in the market for instruments of similar quality, rate, period until next interest rate reset and maturity.</font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Investments valued in currencies other than the U.S. dollar are converted to the U.S. dollar using exchange rates obtained from Pricing
Services. As a result, the value of such investments and, in turn, the NAV of the Fund's shares may be affected by changes in the value of currencies in relation to the U.S. dollar. The value of investments traded in markets outside the United
States or denominated in currencies other than the U.S. dollar may be affected significantly on a day that the Fund is not open for business. As a result, to the extent that the Fund holds foreign (non-U.S.) investments, the value of those
investments may change at times when shareholders are unable to buy or sell shares and the value of such investments will be reflected in the Fund's next calculated NAV.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2">Investments for which market quotes or market-based valuations are not </font><font face="Arial, Helvetica, sans-serif" size="2">readily available are valued at fair value as determined in good
faith by the </font><font face="Arial, Helvetica, sans-serif" size="2">Board or persons acting at their direction. The Board has adopted methods </font><font face="Arial, Helvetica, sans-serif" size="2">for valuing securities and other assets in
circumstances where market </font><font face="Arial, Helvetica, sans-serif" size="2">quotes are not readily available, and has delegated to PIMCO the </font><font face="Arial, Helvetica, sans-serif" size="2">responsibility for applying the fair
valuation methods. In the event that </font><font face="Arial, Helvetica, sans-serif" size="2">market quotes or market-based valuations are not readily available, and the </font><font face="Arial, Helvetica, sans-serif" size="2">security or asset
cannot be valued pursuant to a Board approved valuation </font><font face="Arial, Helvetica, sans-serif" size="2">method, the value of the security or asset will be determined in good faith
</font><font face="Arial, Helvetica, sans-serif" size="2">by the Valuation Oversight Committee of the Board ("Valuation Oversight </font><font face="Arial, Helvetica, sans-serif" size="2">Committee"), generally based on recommendations provided by
PIMCO. </font><font face="Arial, Helvetica, sans-serif" size="2">Market quotes are considered not readily available in circumstances where </font><font face="Arial, Helvetica, sans-serif" size="2">there is an absence of current or reliable
market-based data (e.g., trade </font><font face="Arial, Helvetica, sans-serif" size="2">information, bid/ask information, indicative market quotations ("Broker </font><font face="Arial, Helvetica, sans-serif" size="2">Quotes"), Pricing Services'
prices), including where events occur after the </font><font face="Arial, Helvetica, sans-serif" size="2">close of the relevant market, but prior to the NYSE Close, that materially </font><font face="Arial, Helvetica, sans-serif" size="2">affect the
values of the Fund's securities or assets. In addition, market </font><font face="Arial, Helvetica, sans-serif" size="2">quotes are considered not readily available when, due to extraordinary </font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
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<td align="left" width="50%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><br>
<img src="g450385pr4636img005.jpg"><br></FONT></p> </td>
<td align="right" width="46.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">PIMCO Dynamic Income Fund | <b>PROSPECTUS</b></FONT></p> </td>
<td align="right" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">76</FONT></p> </td> </tr> </table><hr style="size:3;color:#999999;width:100%;">
<DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
<tr>
<td align="right" width="29.5%" colspan="3"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
<tr>
<td align="right" width="29.5%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2">circumstances, the exchanges or markets on which
the securities trade do </font><font face="Arial, Helvetica, sans-serif" size="2">not open for trading for the entire day and no other market prices are </font><font face="Arial, Helvetica, sans-serif" size="2">available. The Board has delegated to
PIMCO the responsibility for </font><font face="Arial, Helvetica, sans-serif" size="2">monitoring significant events that may materially affect the values of the </font><font face="Arial, Helvetica, sans-serif" size="2">Fund's securities or assets
and for determining whether the value of the </font><font face="Arial, Helvetica, sans-serif" size="2">applicable securities or assets should be reevaluated in light of such </font><font face="Arial, Helvetica, sans-serif" size="2">significant
events. </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">When the Fund uses fair valuation to determine the value of a portfolio security or other asset for purposes of calculating its NAV, such investments will not be priced on the
basis of quotes from the primary market in which they are traded, but rather may be priced by another method that the Board or persons acting at their direction believe reflects fair value. Fair valuation may require subjective determinations about
the value of a security. While the Fund's policy is intended to result in a calculation of the Fund's NAV that fairly reflects security values as of the time of pricing, the Fund cannot ensure that fair values determined by the Board or persons
acting at their direction would accurately reflect the price that the Fund could obtain for a security if it were to dispose of that security as of the time of pricing (for instance, in a forced or distressed sale). The prices used by the Fund may
differ from the value that would be realized if the securities were sold.</font></p><a name="chapter_15_4636"></A><a name="chapter_15-sect1_1_4636"></A><p style="padding:0;margin-top:1em;margin-bottom:0em;"><font
face="Arial, Helvetica, sans-serif" size="3"><b>Distributions<br> </b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund makes regular monthly cash distributions to Common Shareholders at a rate based upon the past and
projected net income of the Fund. Subject to applicable law, the Fund may fund a portion of its distributions with gains from the sale of portfolio securities and other sources. The dividend rate that the Fund pays on its Common Shares may vary as
portfolio and market conditions change, and will depend on a number of factors, including without limit the amount of the Fund's undistributed net investment income and net short- and long-term capital gains, as well as the costs of any leverage
obtained by the Fund (including interest or other expenses on any reverse repurchase agreements, dollar rolls and borrowings and dividends payable on any preferred shares issued by the Fund). As portfolio and market conditions change, the rate of
distributions on the Common Shares and the Fund's dividend policy could change. There can be no assurance that a change in market conditions or other factors will not result in a change in the Fund distribution rate or that the rate will be
sustainable in the future. See "Principal Risks of the Fund&#8212;Fund Distribution Rates." For a discussion of factors that may cause the Fund's income and capital gains (and therefore the dividend) to vary, see "Principal Risks of the Fund." The
Fund generally distributes each year all of its net investment income and net short-term capital gains. In addition, at least annually, the Fund generally distributes net realized long-term capital gains not previously distributed, if any. The net
investment income of the Fund consists of all income (other than net short-term and long-term capital gains) less all expenses of the Fund (after it pays accrued dividends on any outstanding preferred shares).</font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">To permit the Fund to maintain a more stable monthly distribution, the </font><font face="Arial, Helvetica, sans-serif" size="2">Fund may
distribute less than the entire amount of net investment income </font><font face="Arial, Helvetica, sans-serif" size="2">earned in a particular period. The undistributed net investment income
</font><font face="Arial, Helvetica, sans-serif" size="2">would be available to supplement future distributions. As a result, the </font><font face="Arial, Helvetica, sans-serif" size="2">distributions paid by the Fund for any particular monthly
period may be </font><font face="Arial, Helvetica, sans-serif" size="2">more or less than the amount of net investment income actually earned by </font><font face="Arial, Helvetica, sans-serif" size="2">the Fund during the period. Undistributed net
investment income will be </font><font face="Arial, Helvetica, sans-serif" size="2">additive to the Fund's NAV and, correspondingly, distributions from </font><font face="Arial, Helvetica, sans-serif" size="2">undistributed net investment income
will be deducted from the Fund's NAV. </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The tax treatment and characterization of the Fund's distributions may vary
significantly from time to time because of the varied nature of the Fund's investments. 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 tax on amounts that are effectively a
taxable return of the shareholder's investment in the Fund, at a time when their investment in the Fund has declined in value, which tax may be at ordinary income. The tax treatment of certain derivatives in which the Fund invests may be unclear and
thus subject to recharacterization. Any recharacterization of payments made or received by the Fund pursuant to derivatives potentially could affect the amount, timing or character of Fund distributions. In addition, the tax treatment of such
investment strategies may be changed by regulation or otherwise.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">To the extent required by the 1940 Act and other
applicable laws, absent an exemption, a notice will accompany each monthly distribution with respect to the estimated source (as between net income and gains) of the distribution made. If the Fund estimates that a portion of one of its dividend
distributions may be comprised of amounts from sources other than net income, the Fund will notify shareholders of record of the estimated composition of such distribution through a Section 19 Notice. For these purposes, the Fund estimates the
source or sources from which a distribution is paid, to the close of the period as of which it is paid, in reference to its internal accounting records and related accounting practices. If, based on such accounting records and practices, it is
estimated that a particular distribution does not include capital gains or paid-in surplus or other capital sources, a Section 19 Notice generally would not be issued. It is important to note that differences exist between the Fund's daily internal
accounting records and practices, the Fund's financial statements presented in accordance with U.S. GAAP, and recordkeeping practices under income tax regulations. For instance, the Fund's internal accounting records and practices may take into
account, among other factors, tax-related characteristics of certain sources of distributions that differ from treatment under U.S. GAAP. Examples of such differences may include, among others, the treatment of paydowns on mortgage-backed securities
purchased at a discount and periodic payments under interest rate swap contracts. Accordingly, among other consequences, it is possible that the Fund may not issue a Section 19 Notice in situations where the Fund's financial statements prepared
later and in accordance with U.S. GAAP and/or the final tax character of those distributions might later report that the sources of those distributions included capital gains and/or a return of capital.</font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
<table width="100%">
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<td align="right" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">December 21, 2017 | <b>PROSPECTUS</b></FONT></p> </td>
<td align="right" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">77</FONT></p> </td> </tr> </table><hr style="size:3;color:#999999;width:100%;">
<DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
<tr>
<td align="left" width="29.5%" colspan="3"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
<tr>
<td align="left" width="29.5%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2">The tax characterization of the Fund's
distributions made in a taxable year cannot finally be determined until at or after the end of the year. As a result, there is a possibility that the Fund may make total distributions during a taxable year in an amount that exceeds the Fund's net
investment income and net realized capital gains for the relevant year (including as reduced by any capital loss carry-forwards). For example, the Fund may distribute amounts early in the year that are derived from short-term capital gains, but
incur net short-term capital losses later in the year, thereby offsetting short-term capital gains out of which distributions have already been made by the Fund. In such a situation, the amount by which the Fund's total distributions exceed net
investment income and net realized capital gains would generally be treated as a tax-free return of capital up to the amount of a shareholder's tax basis in his or her Common Shares, with any amounts exceeding such basis treated as gain from the
sale of Common Shares. In general terms, a return of capital would occur where the Fund distribution (or portion thereof) represents a return of a portion of your investment, rather than net income or capital gains generated from your investment
during a particular period. Although return of capital distributions are not taxable, such distributions would reduce the basis of a shareholder's Common Shares and therefore may increase a shareholder's capital gains or decrease a shareholder's
capital loss upon a sale of Common Shares, thereby potentially increasing a shareholder's tax liability. The Fund will prepare and make available to shareholders detailed tax information with respect to the Fund's distributions annually. See "Tax
Matters."</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The 1940 Act currently limits the number of times the Fund may distribute long-term capital gains in any tax
year, which may increase the variability of the Fund's distributions and result in certain distributions being comprised more or less heavily than others of long-term capital gains currently eligible for favorable income tax rates.</font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Unless a Common Shareholder elects to receive distributions in cash, all distributions of Common Shareholders whose shares are registered
with the plan agent will be automatically reinvested in additional Common Shares of the Fund under the Fund's Dividend Reinvestment
Plan.</font></p><a name="chapter_16_4636"></A><a name="chapter_16-sect1_1_4636"></A><p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b>Dividend Reinvestment Plan</b></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">The Fund has adopted a Dividend Reinvestment Plan (the "Plan") which allows Common Shareholders to reinvest Fund distributions in additional Common Shares of the Fund. American Stock Transfer &#38; Trust
Company, LLC (the "Plan Agent") serves as agent for Common Shareholders in administering the Plan. It is important to note that participation in the Plan and automatic reinvestment of Fund distributions does not ensure a profit, nor does it protect
against losses in a declining market.</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b>Automatic Enrollment/Voluntary Participation<br> </b></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">Under the Plan, Common Shareholders whose shares are registered with </font><font face="Arial, Helvetica, sans-serif" size="2">the Plan Agent ("registered shareholders") are automatically enrolled as
</font><font face="Arial, Helvetica, sans-serif" size="2">participants in the Plan and will have all Fund distributions of income, </font><font face="Arial, Helvetica, sans-serif" size="2">capital gains and returns of capital (together,
"distributions") reinvested by </font><font face="Arial, Helvetica, sans-serif" size="2">the Plan Agent in additional Common Shares of the Fund, unless the </font><font face="Arial, Helvetica, sans-serif" size="2">Common Shareholder elects to
receive cash. Registered shareholders who </font><font face="Arial, Helvetica, sans-serif" size="2">elect not to participate in the Plan will receive all distributions in cash paid </font><font face="Arial, Helvetica, sans-serif" size="2">by check
and mailed directly to the Common Shareholder of record (or if </font><font face="Arial, Helvetica, sans-serif" size="2">the shares are held in street or other nominee name, to the nominee) by the </font><font
face="Arial, Helvetica, sans-serif" size="2">Plan Agent. </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Participation in the Plan is voluntary. Participants may
terminate or resume their enrollment in the Plan at any time without penalty by notifying the Plan Agent online at www.astfinancial.com, by calling (844) 33PIMCO (844 337-4626), by writing to the Plan Agent, American Stock Transfer &#38; Trust
Company, LLC, at P.O. Box 922, Wall Street Station, New York, NY 10269-0560, or, as applicable, by completing and returning the transaction form attached to a Plan statement. A proper notification will be effective immediately and apply to the
Fund's next distribution if received by the Plan Agent at least three (3) days prior to the record date for the distribution; otherwise, a notification will be effective shortly following the Fund's next distribution and will apply to the Fund's
next succeeding distribution thereafter. If you withdraw from the Plan and so request, the Plan Agent will arrange for the sale of your shares and send you the proceeds, minus brokerage commissions.</font></p>
<p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b>How Shares Are Purchased Under The Plan<br> </b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">For each Fund
distribution, the Plan Agent will acquire Common Shares for participants either (i) through receipt of newly issued Common Shares from the Fund ("newly issued shares") or (ii) by purchasing Common Shares of the Fund on the open market ("open market
purchases"). If, on a distribution payment date, the NAV is equal to or less than the market price per Common Share plus estimated brokerage commissions (often referred to as a "market premium"), the Plan Agent will invest the distribution amount on
behalf of participants in newly issued shares at a price equal to the greater of (i) NAV or (ii) 95% of the market price per Common Share on the payment date. If the NAV is greater than the market price per Common Share plus estimated brokerage
commissions (often referred to as a "market discount") on a distribution payment date, the Plan agent will instead attempt to invest the distribution amount through open market purchases. If the Plan Agent is unable to invest the full distribution
amount in open market purchases, or if the market discount shifts to a market premium during the purchase period, the Plan Agent will invest any un-invested portion of the distribution in newly issued shares at a price equal to the greater of (i)
NAV or (ii) 95% of the market price per share as of the last business day immediately prior to the purchase date (which, in either case, may be a price greater or lesser than the NAV per Common Share on the distribution payment date). No interest
will be paid on distributions awaiting reinvestment.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Under the Plan, the market price of Common Shares on a particular
date is the last sales price on the exchange where the Common Shares are listed on that date or, if there is no sale on the exchange on that date, the mean between the closing bid and asked quotations for the Common Shares on the exchange on that
date. The NAV per Common Share on a particular date is the amount calculated on that date (normally at the close of regular trading on the NYSE) in accordance with the Fund's then current policies.</font></p>
<p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b>Fees and Expenses</b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">No brokerage charges are imposed on reinvestments in
newly issued shares </font><font face="Arial, Helvetica, sans-serif" size="2">under the Plan. However, all participants will pay a pro rata share of </font><font face="Arial, Helvetica, sans-serif" size="2">brokerage commissions incurred by the Plan
Agent when it makes open </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
<table width="100%">
<tr>
<td align="left" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">78 &#160;&#160;&#160;&#160; </FONT></p> </td>
<td align="left" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><b>PROSPECTUS</b> | PIMCO Dynamic Income Fund &#160;&#160;&#160;&#160; </FONT></p> </td> </tr>
</table><hr style="size:3;color:#999999;width:100%;"> <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;
</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
<tr>
<td align="right" width="29.5%" colspan="3"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
<tr>
<td align="right" width="29.5%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2">market purchases. There are currently no direct
service charges imposed on </font><font face="Arial, Helvetica, sans-serif" size="2">participants in the Plan, although the Fund reserves the right to amend the </font><font face="Arial, Helvetica, sans-serif" size="2">Plan to include such
charges.</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b>Shares Held Through Nominees<br> </b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">In the case of a
registered shareholder such as a broker, bank or other nominee (together, a "nominee") that holds Common Shares for others who are the beneficial owners, the Plan Agent will administer the Plan on the basis of the number of Common Shares certified
by the nominee/record shareholder as representing the total amount registered in such shareholder's name and held for the account of beneficial owners who are to participate in the Plan. If your Common Shares are held through a nominee and are not
registered with the Plan Agent, neither you nor the nominee will be participants in or have distributions reinvested under the Plan. If you are a beneficial owner of Common Shares and wish to participate in the Plan, and your nominee is unable or
unwilling to become a registered shareholder and a Plan participant on your behalf, you may request that your nominee arrange to have all or a portion of your shares re-registered with the Plan Agent in your name so that you may be enrolled as a
participant in the Plan. Please contact your nominee for details or for other possible alternatives. Participants whose shares are registered with the Plan Agent in the name of one nominee firm may not be able to transfer the shares to another firm
and continue to participate in the Plan.</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b>Tax Consequences</b></font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2">Automatically reinvested dividends and distributions are taxed in the same manner as cash dividends and distributions&#8212;i.e., automatic reinvestment in additional shares does not relieve
Common Shareholders of, or defer the need to pay, any income tax that may be payable (or that is required to be withheld) on Fund dividends and distributions. The Fund and the Plan Agent reserve the right to amend or terminate the Plan. Additional
information about the Plan, as well as a copy of the full Plan itself, may be obtained from the Plan Agent, American Stock Transfer &#38; Trust Company, LLC, at P.O. Box 922, Wall Street Station, New York, NY 10269-0560; telephone number: (844)
33-PIMCO (844-337-4626); website:
www.astfinancial.com.</font></p><a name="chapter_17_4636"></A><a name="chapter_17-sect1_1_4636"></A><p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b>Description of Capital Structure<br>
</b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The following is a brief description of the capital structure of the Fund. This description does not purport to be complete and is subject to and qualified in its entirety by
reference to the Declaration and the Fund's Bylaws, as amended and restated through the date hereof (the "Bylaws"). The Declaration and Bylaws are each exhibits to the registration statement of which this prospectus is a part.</font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund is an unincorporated voluntary association with transferable </font><font face="Arial, Helvetica, sans-serif" size="2">shares of
beneficial interest (commonly referred to as a "Massachusetts </font><font face="Arial, Helvetica, sans-serif" size="2">business trust") established under the laws of the Commonwealth of
</font><font face="Arial, Helvetica, sans-serif" size="2">Massachusetts by the Declaration. The Declaration provides that the </font><font face="Arial, Helvetica, sans-serif" size="2">Trustees of the Fund may authorize separate classes of shares of
beneficial </font><font face="Arial, Helvetica, sans-serif" size="2">interest. However, as of the date of this prospectus, the Fund has not issued </font><font face="Arial, Helvetica, sans-serif" size="2">any shares other than the Common Shares. The
following table shows the </font><font face="Arial, Helvetica, sans-serif" size="2">amount of Common Shares authorized and outstanding as of November </font><font face="Arial, Helvetica, sans-serif" size="2">30, 2017. </font></p>
<table margin="0" cellspacing="0" cellpadding="0" border="0px" width="100%">
<tr>
<td valign="bottom" align="left" width="61%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b> Title of Class </b></font></p> </td>
<td valign="bottom" align="center" width="19.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b> Amount Authorized </b></font></p> </td>
<td valign="bottom" align="center" width="19.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b> Amount Outstanding </b></font></p> </td> </tr>
<tr style="background-color:#d6f7fa;">
<td valign="bottom" align="left" width="61%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Common Shares </font></p> </td>
<td valign="bottom" align="center" width="19.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Unlimited </font></p> </td>
<td valign="bottom" align="center" width="19.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 49,964,011 </font></p> </td> </tr></table> <p><font face="Arial, Helvetica, sans-serif" size="2">The Common
Shares of the Fund commenced trading on the NYSE on May 30, 2012, under the trading or "ticker" symbol PDI. As of the close of trading on the NYSE on November 30, 2017, the NAV per Common Share was $29.02, and the closing price per Common Share on
the NYSE was $30.46.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Common Shareholders are entitled to share equally in dividends declared by the Board to Common
Shareholders and in the net assets of the Fund available for distribution to Common Shareholders after payment of the preferential amounts payable to holders of any outstanding preferred shares of beneficial interest. All Common Shares of the Fund
have equal rights to the payment of dividends and the distribution of assets upon liquidation. Common Shares of the Fund are fully paid and, subject to matters discussed in "Anti-Takeover and Other Provisions in the Declaration of Trust,"
non-assessable, and have no pre-emptive or conversion rights or rights to cumulative voting, and have no right to cause the Fund to redeem their shares. Upon liquidation of the Fund, after payment of the preferential amounts payable to holders of
any outstanding preferred shares of beneficial interest, and upon receipt of such releases, indemnities and refunding agreements as they deem necessary for their protection, the Trustees may distribute the remaining assets of the Fund among the
Fund's Common Shareholders.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Shareholders of each class are entitled to one vote for each share held. Common
Shareholders will vote with the holders of any outstanding preferred shares as a single class on each matter submitted to a vote of holders of Common Shares, except as otherwise provided by the Declaration, the Bylaws or applicable law.</font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund will send unaudited reports at least semiannually and audited financial statements annually to all of its
shareholders.</font></p><a name="chapter_18_4636"></A><a name="chapter_18-sect1_1_4636"></A><p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b>Plan of Distribution<br> </b></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">The Fund may sell Common Shares through underwriters or dealers, directly to one or more purchasers (including existing shareholders in a rights offering), through agents, to or through underwriters or
dealers, or through a combination of any such methods of sale. The applicable prospectus supplement will identify any underwriter or agent involved in the offer and sale of the Common Shares, any sales loads, discounts, commissions, fees or other
compensation paid to any underwriter, dealer or agent, the offering price, net proceeds and use of proceeds and the terms of any sale.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">The distribution of the Common Shares may be effected from time to time in one or more transactions at a fixed price or prices, which may be changed, at prevailing market prices at the time of sale, at
prices related to such prevailing market prices, or at negotiated prices.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund may sell the Common Shares directly
to, and solicit offers from, </font><font face="Arial, Helvetica, sans-serif" size="2">institutional investors or others who may be deemed to be underwriters as </font><font face="Arial, Helvetica, sans-serif" size="2">defined in the 1933 Act for
any resales of the securities. In this case, no </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
<table width="100%">
<tr>
<td align="right" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">December 21, 2017 | <b>PROSPECTUS</b></FONT></p> </td>
<td align="right" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">79</FONT></p> </td> </tr> </table><hr style="size:3;color:#999999;width:100%;">
<DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
<tr>
<td align="left" width="29.5%" colspan="3"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
<tr>
<td align="left" width="29.5%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2">underwriters or agents would be involved. The Fund
may use electronic </font><font face="Arial, Helvetica, sans-serif" size="2">media, including the Internet, to sell offered securities directly. </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">In connection with the sale of the
Common Shares, underwriters or agents may receive compensation from the Fund in the form of discounts, concessions or commissions. Underwriters may sell Common Shares to or through dealers, and such dealers may receive compensation in the form of
discounts, concessions or commissions from the underwriters and/or commissions from the purchasers for whom they may act as agents. Underwriters, dealers and agents that participate in the distribution of the Common Shares may be deemed to be
underwriters under the 1933 Act, and any discounts and commissions they receive from the Fund and any profit realized by them on the resale of the Common Shares may be deemed to be underwriting discounts and commissions under the 1933 Act. Any such
underwriter or agent will be identified and any such compensation received from the Fund will be described in the applicable prospectus supplement. The maximum amount of compensation to be received by any Financial Industry Regulatory Authority
member or independent broker-dealer will not exceed 8% for the sale of any securities being registered pursuant to Rule 415 under the 1933 Act. The Fund will not pay any compensation to any underwriter or agent in the form of warrants, options,
consulting or structuring fees or similar arrangements.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">If a prospectus supplement so indicates, the Fund may grant
the underwriters an option to purchase additional Common Shares at the public offering price, less the underwriting discounts and commissions, within 45 days from the date of the prospectus supplement, to cover any over-allotments.</font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Under agreements into which the Fund may enter, underwriters, dealers and agents who participate in the distribution of the Common Shares
may be entitled to indemnification by the Fund against certain liabilities, including liabilities under the 1933 Act. Underwriters, dealers and agents may engage in transactions with the Fund, or perform services for the Fund, in the ordinary course
of business.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">If so indicated in the applicable prospectus supplement, the Fund will, or will authorize underwriters or
other persons acting as its agents to, solicit offers by certain institutions to purchase Common Shares from the Fund pursuant to contracts providing for payment and delivery on a future date. Institutions with which such contracts may be made
include commercial and savings banks, insurance companies, pension funds, investment companies, educational and charitable institutions and others, but in all cases such institutions must be approved by the Fund. The obligation of any purchaser
under any such contract will be subject to the condition that the purchase of the Common Shares shall not at the time of delivery be prohibited under the laws of the jurisdiction to which such purchaser is subject. The underwriters and such other
agents will not have any responsibility in respect of the validity or performance of such contracts. Such contracts will be subject only to those conditions set forth in the prospectus supplement, and the prospectus supplement will set forth the
commission payable for solicitation of such contracts.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">To the extent permitted under the 1940 Act and the rules and
regulations </font><font face="Arial, Helvetica, sans-serif" size="2">promulgated thereunder, the underwriters may from time to time act as </font><font face="Arial, Helvetica, sans-serif" size="2">brokers or dealers and receive fees in connection
with the execution of the </font><font face="Arial, Helvetica, sans-serif" size="2">Fund's portfolio transactions after the underwriters have ceased to be </font><font face="Arial, Helvetica, sans-serif" size="2">underwriters and, subject to certain
restrictions, each may act as a broker </font><font face="Arial, Helvetica, sans-serif" size="2">while it is an underwriter. </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">A prospectus and accompanying prospectus supplement in electronic form may be made available on the websites maintained by underwriters. The underwriters may agree to allocate a number of securities for
sale to their online brokerage account holders. Such allocations of securities for Internet distributions will be made on the same basis as other allocations. In addition, securities may be sold by the underwriters to securities dealers who resell
securities to online brokerage account holders.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">In order to comply with the securities laws of certain states, if
applicable, Common Shares offered hereby will be sold in such jurisdictions only through registered or licensed brokers or
dealers.</font></p><a name="chapter_19_4636"></A><a name="chapter_19-sect1_1_4636"></A><p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b>Market and Net Asset Value Information<br>
</b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund's Common Shares are listed on the NYSE under the trading or "ticker" symbol PDI. The Fund's Common Shares commenced trading on the NYSE in May 2012. The Fund cannot
predict whether its Common Shares will trade in the future at a premium or discount to NAV. The conduct of any offering and the issuance of additional Common Shares pursuant to any offering may have an adverse effect on prices in the secondary
market for the Fund's Common Shares by increasing the number of shares available, which may put downward pressure on the market price for the Common Shares. The NAV of the Fund's Common Shares will be reduced immediately following an offering by the
sales load, commissions and offering expenses paid or reimbursed by the Fund in connection with such offering. The completion of an offering may result in an immediate dilution of the NAV per Common Share for all existing Common
Shareholders.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The following table sets forth, for each of the periods indicated, the high and low closing market
prices of the Fund's Common Shares on the NYSE, the high and low NAV per Common Share and the high and low premium/discount to NAV per Common Share. See "Net Asset Value" for information as to how the Fund's NAV is determined.</font></p>
<table margin="0" cellspacing="0" cellpadding="0" border="0px" width="100%">
<tr>
<td valign="bottom" align="left" width="44%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="center" width="9%" colspan="2"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b>Common share<br> market price<sup>(1)</sup></b></font></p> </td>
<td valign="bottom" align="center" width="9%" colspan="2"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b>Common share<br> net asset value</b></font></p> </td>
<td valign="bottom" align="center" width="10%" colspan="2"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b>Premium (discount) as<br> a % of net asset value</b></font></p> </td> </tr>
<tr>
<td valign="bottom" align="left" width="44%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b> Quarter </b></font></p> </td>
<td valign="bottom" align="center" width="9%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b> High </b></font></p> </td>
<td valign="bottom" align="center" width="9%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b> Low </b></font></p> </td>
<td valign="bottom" align="center" width="9%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b> High </b></font></p> </td>
<td valign="bottom" align="center" width="9%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b> Low </b></font></p> </td>
<td valign="bottom" align="center" width="10%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b> High </b></font></p> </td>
<td valign="bottom" align="center" width="10%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b> Low </b></font></p> </td> </tr>
<tr>
<td valign="bottom" align="left" width="44%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Quarter ended September 30, 2017 </font></p> </td>
<td valign="bottom" align="center" width="9%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $31.03 </font></p> </td>
<td valign="bottom" align="center" width="9%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $28.98 </font></p> </td>
<td valign="bottom" align="center" width="9%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $29.03 </font></p> </td>
<td valign="bottom" align="center" width="9%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $28.19 </font></p> </td>
<td valign="bottom" align="center" width="10%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 8.53% </font></p> </td>
<td valign="bottom" align="center" width="10%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 2.22% </font></p> </td> </tr>
<tr style="background-color:#d6f7fa;">
<td valign="bottom" align="left" width="44%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Quarter ended June 30, 2017 </font></p> </td>
<td valign="bottom" align="center" width="9%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $30.18 </font></p> </td>
<td valign="bottom" align="center" width="9%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $28.83 </font></p> </td>
<td valign="bottom" align="center" width="9%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $28.32 </font></p> </td>
<td valign="bottom" align="center" width="9%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $26.73 </font></p> </td>
<td valign="bottom" align="center" width="10%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 9.41% </font></p> </td>
<td valign="bottom" align="center" width="10%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 5.84% </font></p> </td> </tr>
<tr>
<td valign="bottom" align="left" width="44%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Quarter ended March 31, 2017 </font></p> </td>
<td valign="bottom" align="center" width="9%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $29.07 </font></p> </td>
<td valign="bottom" align="center" width="9%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $27.68 </font></p> </td>
<td valign="bottom" align="center" width="9%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $26.83 </font></p> </td>
<td valign="bottom" align="center" width="9%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $25.79 </font></p> </td>
<td valign="bottom" align="center" width="10%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 10.64% </font></p> </td>
<td valign="bottom" align="center" width="10%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 4.61% </font></p> </td> </tr>
<tr style="background-color:#d6f7fa;">
<td valign="bottom" align="left" width="44%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Quarter ended December 31, 2016 </font></p> </td>
<td valign="bottom" align="center" width="9%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $29.18 </font></p> </td>
<td valign="bottom" align="center" width="9%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $26.18 </font></p> </td>
<td valign="bottom" align="center" width="9%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $27.57 </font></p> </td>
<td valign="bottom" align="center" width="9%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $25.83 </font></p> </td>
<td valign="bottom" align="center" width="10%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 8.09% </font></p> </td>
<td valign="bottom" align="center" width="10%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> (3.96)% </font></p> </td> </tr>
<tr>
<td valign="bottom" align="left" width="44%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Quarter ended September 30, 2016 </font></p> </td>
<td valign="bottom" align="center" width="9%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $29.05 </font></p> </td>
<td valign="bottom" align="center" width="9%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $27.32 </font></p> </td>
<td valign="bottom" align="center" width="9%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $27.49 </font></p> </td>
<td valign="bottom" align="center" width="9%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $26.40 </font></p> </td>
<td valign="bottom" align="center" width="10%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 7.10% </font></p> </td>
<td valign="bottom" align="center" width="10%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 1.66% </font></p> </td> </tr>
<tr style="background-color:#d6f7fa;">
<td valign="bottom" align="left" width="44%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Quarter ended June 30, 2016 </font></p> </td>
<td valign="bottom" align="center" width="9%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $27.74 </font></p> </td>
<td valign="bottom" align="center" width="9%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $25.99 </font></p> </td>
<td valign="bottom" align="center" width="9%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $26.70 </font></p> </td>
<td valign="bottom" align="center" width="9%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $25.99 </font></p> </td>
<td valign="bottom" align="center" width="10%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 4.47% </font></p> </td>
<td valign="bottom" align="center" width="10%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> (0.76)% </font></p> </td> </tr>
<tr>
<td valign="bottom" align="left" width="44%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Quarter ended March 31, 2016 </font></p> </td>
<td valign="bottom" align="center" width="9%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $27.74 </font></p> </td>
<td valign="bottom" align="center" width="9%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $24.90 </font></p> </td>
<td valign="bottom" align="center" width="9%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $27.21 </font></p> </td>
<td valign="bottom" align="center" width="9%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $25.94 </font></p> </td>
<td valign="bottom" align="center" width="10%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 2.72% </font></p> </td>
<td valign="bottom" align="center" width="10%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> (4.54)% </font></p> </td> </tr>
<tr style="background-color:#d6f7fa;">
<td valign="bottom" align="left" width="44%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Quarter ended December 31, 2015 </font></p> </td>
<td valign="bottom" align="center" width="9%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $29.83 </font></p> </td>
<td valign="bottom" align="center" width="9%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $27.25 </font></p> </td>
<td valign="bottom" align="center" width="9%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $30.39 </font></p> </td>
<td valign="bottom" align="center" width="9%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $27.16 </font></p> </td>
<td valign="bottom" align="center" width="10%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 1.88% </font></p> </td>
<td valign="bottom" align="center" width="10%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> (4.73)% </font></p> </td> </tr>
<tr>
<td valign="bottom" align="left" width="44%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Quarter ended September 30, 2015 </font></p> </td>
<td valign="bottom" align="center" width="9%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $29.39 </font></p> </td>
<td valign="bottom" align="center" width="9%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $26.99 </font></p> </td>
<td valign="bottom" align="center" width="9%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $31.46 </font></p> </td>
<td valign="bottom" align="center" width="9%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $30.22 </font></p> </td>
<td valign="bottom" align="center" width="10%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> (4.34)% </font></p> </td>
<td valign="bottom" align="center" width="10%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> (11.57)% </font></p> </td> </tr>
<tr style="background-color:#d6f7fa;">
<td valign="bottom" align="left" width="44%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Quarter ended June 30, 2015 </font></p> </td>
<td valign="bottom" align="center" width="9%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $30.16 </font></p> </td>
<td valign="bottom" align="center" width="9%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $28.98 </font></p> </td>
<td valign="bottom" align="center" width="9%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $31.52 </font></p> </td>
<td valign="bottom" align="center" width="9%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $30.74 </font></p> </td>
<td valign="bottom" align="center" width="10%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> (3.66)% </font></p> </td>
<td valign="bottom" align="center" width="10%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> (7.71)% </font></p> </td> </tr>
<tr>
<td valign="bottom" align="left" width="44%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Quarter ended March 31, 2015 </font></p> </td>
<td valign="bottom" align="center" width="9%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $30.65 </font></p> </td>
<td valign="bottom" align="center" width="9%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $28.83 </font></p> </td>
<td valign="bottom" align="center" width="9%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $30.95 </font></p> </td>
<td valign="bottom" align="center" width="9%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $30.34 </font></p> </td>
<td valign="bottom" align="center" width="10%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 0.03% </font></p> </td>
<td valign="bottom" align="center" width="10%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> (6.34)% </font></p> </td> </tr></table> <p style="padding:1px;margin:0px;">&#160;</p>
<p style="valign:top;align:left;padding-top:3px;padding-right:5px;padding-left:12px ;text-indent:-12px;margin:0px;"><font face="Arial, Helvetica, sans-serif" size="1">1</font><FONT SIZE="2" face="Arial, Helvetica, sans-serif">&#160;</FONT><font
face="Arial, Helvetica, sans-serif" size="1">Such prices reflect inter-dealer prices, without retail mark-up, mark-down or commission and may not represent actual transactions.</font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
<table width="100%">
<tr>
<td align="left" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">80 &#160;&#160;&#160;&#160; </FONT></p> </td>
<td align="left" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><b>PROSPECTUS</b> | PIMCO Dynamic Income Fund &#160;&#160;&#160;&#160; </FONT></p> </td> </tr>
</table><hr style="size:3;color:#999999;width:100%;"> <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;
</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
<tr>
<td align="right" width="29.5%" colspan="3"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
<tr>
<td align="right" width="29.5%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund's NAV per Common share at the close of
business on November 30, 2017 was $29.02 and the last reported sale price of a Common Share on the NYSE on that day was $30.46, representing a 4.96% premium to such
NAV.</font></p><a name="chapter_20_4636"></A><a name="chapter_20-sect1_1_4636"></A><p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b>Anti-Takeover and Other Provisions in the Declaration of
Trust<br> </b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Declaration and the Bylaws include 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. The Fund's Trustees are divided into three classes. At each annual meeting of shareholders, the term of one class will expire and each Trustee elected to that class will hold office until the third annual meeting thereafter. The
classification of the Board of Trustees in this manner could delay for an additional year the replacement of a majority of the Board of Trustees. In addition, the Declaration provides that a Trustee may be removed only for cause and only (i) by
action of at least seventy-five percent (75%) of the outstanding shares of the classes or series of shares entitled to vote for the election of such Trustee, or (ii) by written instrument, signed by at least seventy-five percent (75%) of the
remaining Trustees, specifying the date when such removal shall become effective. Cause for these purposes shall require willful misconduct, dishonesty or fraud on the part of the Trustee in the conduct of his office or such Trustee being convicted
of a felony.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">As described below, the Declaration grants special approval rights with respect to certain matters to
members of the Board who qualify as "Continuing Trustees," which term means a Trustee who either (i) has been a member of the Board for a period of at least thirty-six months (or since the commencement of the Fund's operations, if less than
thirty-six months) or (ii) was nominated to serve as a member of the Board of Trustees by a majority of the Continuing Trustees then members of the Board.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">The Declaration requires the affirmative vote or consent of at least seventy-</font><font face="Arial, Helvetica, sans-serif" size="2">five percent (75%) of the Board of Trustees and holders of at least
seventy-</font><font face="Arial, Helvetica, sans-serif" size="2">five percent (75%) of the Fund's shares to authorize certain Fund </font><font face="Arial, Helvetica, sans-serif" size="2">transactions not in the ordinary course of business,
including a merger or </font><font face="Arial, Helvetica, sans-serif" size="2">consolidation or share exchange, issuance or transfer by the Fund of the </font><font face="Arial, Helvetica, sans-serif" size="2">Fund's shares having an aggregate fair
market value of $1,000,000 or </font><font face="Arial, Helvetica, sans-serif" size="2">more (except as may be made pursuant to a public offering, the Fund's </font><font face="Arial, Helvetica, sans-serif" size="2">dividend reinvestment plan or
upon exercise of any stock subscription </font><font face="Arial, Helvetica, sans-serif" size="2">rights), a sale, lease, exchange, mortgage, pledge, transfer or other </font><font face="Arial, Helvetica, sans-serif" size="2">disposition of Fund
assets, having an aggregated fair market value of </font><font face="Arial, Helvetica, sans-serif" size="2">$1,000,000 or more, or any shareholder proposal regarding specific </font><font face="Arial, Helvetica, sans-serif" size="2">investment
decisions, unless the transaction is authorized by both a majority </font><font face="Arial, Helvetica, sans-serif" size="2">of the Trustees and seventy-five percent (75%) of the Continuing Trustees </font><font
face="Arial, Helvetica, sans-serif" size="2">(in which case no shareholder authorization would be required by the </font><font face="Arial, Helvetica, sans-serif" size="2">Declaration, but may be required in certain cases under the 1940 Act). The
</font><font face="Arial, Helvetica, sans-serif" size="2">Declaration also requires the affirmative vote or consent of holders of at </font><font face="Arial, Helvetica, sans-serif" size="2">least seventy-five percent (75%) of the Fund's shares
entitled to vote on the </font><font face="Arial, Helvetica, sans-serif" size="2">matter to authorize a conversion of the Fund from a closed-end to an open-</font><font face="Arial, Helvetica, sans-serif" size="2">end investment company, unless the
conversion is authorized by both a </font><font face="Arial, Helvetica, sans-serif" size="2">majority of the Trustees and seventy-five percent (75%) of the Continuing </font><font face="Arial, Helvetica, sans-serif" size="2">Trustees (in which case
shareholders would have only the minimum voting </font><font face="Arial, Helvetica, sans-serif" size="2">rights required by the 1940 Act with respect to the conversion). Also, the
</font><font face="Arial, Helvetica, sans-serif" size="2">Declaration provides that the Fund may be terminated at any time by vote </font><font face="Arial, Helvetica, sans-serif" size="2">or consent of at least seventy-five percent (75%) of the
Fund's shares or, </font><font face="Arial, Helvetica, sans-serif" size="2">alternatively, by vote or consent of both a majority of the Trustees and </font><font face="Arial, Helvetica, sans-serif" size="2">seventy-five percent (75%) of the
Continuing Trustees. See "Anti-Takeover </font><font face="Arial, Helvetica, sans-serif" size="2">and Other Provisions in the Declaration of Trust" in the Statement of </font><font face="Arial, Helvetica, sans-serif" size="2">Additional Information
for a more detailed summary of these provisions. </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Trustees may from time to time grant other voting rights to
shareholders with respect to these and other matters in the Bylaws, certain of which are required by the 1940 Act.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The
overall effect of these provisions is to render more difficult the accomplishment of a merger or the assumption of control of the Fund by a third party. These provisions also provide, however, the advantage of potentially requiring persons seeking
control of the Fund to negotiate with its management regarding the price to be paid and facilitating the continuity of the Fund's investment objectives and policies. The provisions of the Declaration and Bylaws described above could have the effect
of depriving the Common Shareholders of opportunities to sell their Common Shares at a premium over the then current market price of the Common Shares by discouraging a third party from seeking to obtain control of the Fund in a tender offer or
similar transaction. The Board of Trustees of the Fund has considered the foregoing anti-takeover provisions and concluded that they are in the best interests of the Fund and its shareholders, including Common Shareholders.</font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The foregoing is intended only as a summary and is qualified in its entirety by reference to the full text of the Declaration and the
Bylaws, both of which are on file with the SEC.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Under Massachusetts law, shareholders could, in certain circumstances,
be held personally liable for the obligations of the Fund. However, the Declaration contains an express disclaimer of shareholder liability for debts or obligations of the Fund and requires that notice of such limited liability be given in each
agreement, obligation or instrument entered into or executed by the Fund or the Trustees. The Declaration further provides for indemnification out of the assets and property of the Fund for all loss and expense of any shareholder held personally
liable for the obligations of the Fund. Thus, the risk of a shareholder incurring financial loss on account of shareholder liability is limited to circumstances in which the Fund would be unable to meet its obligations. The Fund believes that the
likelihood of such circumstances is remote.</font></p><a name="chapter_21_4636"></A><a name="chapter_21-sect1_1_4636"></A><p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b>Repurchase of
Common Shares; Conversion to Open-End Fund</b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund is a closed-end investment company and as such its shareholders </font><font face="Arial, Helvetica, sans-serif" size="2">will
not have the right to cause the Fund to redeem their shares. Instead, </font><font face="Arial, Helvetica, sans-serif" size="2">the Common Shares will trade in the open market at a price that will be a </font><font
face="Arial, Helvetica, sans-serif" size="2">function of factors relating to the Fund such as dividend levels and stability </font><font face="Arial, Helvetica, sans-serif" size="2">(which will in turn be affected by Fund expenses, including the
costs of any </font><font face="Arial, Helvetica, sans-serif" size="2">reverse repurchase agreements, dollar rolls, borrowings and other leverage </font><font face="Arial, Helvetica, sans-serif" size="2">used by the Fund, levels of dividend and
interest payments by the Fund's </font><font face="Arial, Helvetica, sans-serif" size="2">portfolio holdings, levels of appreciation/depreciation of the Fund's portfolio </font><font face="Arial, Helvetica, sans-serif" size="2">holdings, regulation
affecting the timing and character of the Fund's </font><font face="Arial, Helvetica, sans-serif" size="2">distributions and other factors), portfolio credit quality, liquidity, call </font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
<table width="100%">
<tr>
<td align="right" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">December 21, 2017 | <b>PROSPECTUS</b></FONT></p> </td>
<td align="right" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">81</FONT></p> </td> </tr> </table><hr style="size:3;color:#999999;width:100%;">
<DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
<tr>
<td align="left" width="29.5%" colspan="3"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
<tr>
<td align="left" width="29.5%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2">protection, market supply and demand and similar
factors relating to the </font><font face="Arial, Helvetica, sans-serif" size="2">Fund's portfolio holdings. The market price of the Common Shares may also </font><font face="Arial, Helvetica, sans-serif" size="2">be affected by general market or
economic conditions, including market </font><font face="Arial, Helvetica, sans-serif" size="2">trends affecting securities values generally or values of closed-end fund </font><font face="Arial, Helvetica, sans-serif" size="2">shares more
specifically. Shares of a closed-end investment company may </font><font face="Arial, Helvetica, sans-serif" size="2">frequently trade at prices lower than NAV. The Fund's Board of Trustees
</font><font face="Arial, Helvetica, sans-serif" size="2">regularly monitors the relationship between the market price and NAV of </font><font face="Arial, Helvetica, sans-serif" size="2">the Common Shares. If the Common Shares were to trade at a
substantial </font><font face="Arial, Helvetica, sans-serif" size="2">discount to NAV for an extended period of time, the Board of Trustees may </font><font face="Arial, Helvetica, sans-serif" size="2">consider the repurchase of its Common Shares on
the open market or in </font><font face="Arial, Helvetica, sans-serif" size="2">private transactions, the making of a tender offer for such shares or the </font><font face="Arial, Helvetica, sans-serif" size="2">conversion of the Fund to an open-end
investment company. The Fund </font><font face="Arial, Helvetica, sans-serif" size="2">cannot assure you that its Board of Trustees will decide to take or propose </font><font face="Arial, Helvetica, sans-serif" size="2">any of these actions, or
that share repurchases or tender offers will actually </font><font face="Arial, Helvetica, sans-serif" size="2">reduce any market discount. See "Tax Matters" in the Statement of </font><font face="Arial, Helvetica, sans-serif" size="2">Additional
Information for a discussion of the tax implications of a tender </font><font face="Arial, Helvetica, sans-serif" size="2">offer by the Fund. </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">If the Fund were to convert to an
open-end company, the Common Shares likely would no longer be listed on the NYSE. In contrast to a closed-end investment company, shareholders of an open-end investment company may require the company to redeem their shares at any time (except in
certain circumstances as authorized by or under the 1940 Act) at their NAV, less any redemption charge that is in effect at the time of redemption.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">Before deciding whether to take any action to convert the Fund to an open-end investment company, the Board of Trustees would consider all relevant factors, including the extent and duration of the
discount, the liquidity of the Fund's portfolio, the impact of any action that might be taken on the Fund or its shareholders, and market considerations. Based on these considerations, even if the Common Shares should trade at a discount, the Board
of Trustees may determine that, in the interest of the Fund and its shareholders, no action should be taken. See the Statement of Additional Information under "Repurchase of Common Shares; Conversion to Open-End Fund" for a further discussion of
possible action to reduce or eliminate any such discount to
NAV.</font></p><a name="chapter_22_4636"></A><a name="chapter_22-sect1_1_4636"></A><p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b>Tax Matters<br> </b></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">This section summarizes some of the U.S. federal income tax consequences to U.S. persons of investing in the Fund; the consequences under
other tax laws and to non-U.S. shareholders may differ. Shareholders should consult their tax advisors as to the possible application of federal, state, local or non-U.S. income tax laws. Please see the Statement of Additional Information for
additional information regarding the tax aspects of investing in the Fund.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font
face="Arial, Helvetica, sans-serif" size="3"><b><b>Taxation of the Fund<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund has elected to be treated, and intends each year to qualify and be </font><font
face="Arial, Helvetica, sans-serif" size="2">eligible to be treated, as a regulated investment company under Subchapter </font><font face="Arial, Helvetica, sans-serif" size="2">M of the Internal Revenue Code of 1986, as amended (the "Code").
</font><font face="Arial, Helvetica, sans-serif" size="2">A regulated investment company is not subject to U.S. federal income tax at </font><font face="Arial, Helvetica, sans-serif" size="2">the corporate level on income and gains from investments
that are </font><font face="Arial, Helvetica, sans-serif" size="2">distributed to shareholders. The Fund's failure to qualify as a regulated </font><font face="Arial, Helvetica, sans-serif" size="2">investment company would result in corporate-level
taxation, thereby </font><font face="Arial, Helvetica, sans-serif" size="2">reducing the return on your investment. </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2">As described under "Use of Leverage" above, if at any time when preferred shares or other senior securities are outstanding the Fund does not meet applicable asset coverage requirements, it will
be required to suspend distributions to Common Shareholders until the requisite asset coverage is restored. Any such suspension may cause the Fund to pay a U.S. federal income and excise tax on undistributed income or gains and may, in certain
circumstances, prevent the Fund from qualifying for treatment as a regulated investment company. The Fund may repurchase, prepay, or otherwise retire preferred shares or other senior securities, as applicable, in an effort to comply with the
distribution requirement applicable to regulated investment companies.</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Distributions<br> </b></b></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">The Fund intends to make monthly distributions of net investment income. A shareholder subject to U.S. federal income tax will generally be subject to tax on Fund distributions. For U.S. federal income
tax purposes, Fund distributions will generally be taxable to a shareholder as either ordinary income or capital gains. Fund dividends consisting of distributions of investment income generally are taxable to shareholders as ordinary income. Federal
taxes on Fund distributions of capital gains are determined by how long the Fund owned or is deemed to have owned the investments that generated the capital gains, rather than how long a shareholder has owned its shares of the Fund. Distributions of
net capital gains (that is, the excess of net long-term capital gains over net short-term capital losses, in each case determined with reference to any loss carryforwards) that are properly reported by the Fund as capital gain dividends generally
will be treated as long-term capital gains includible in a shareholder's net capital gains and taxed to individuals at reduced rates. The Fund does not expect a significant portion of its distributions to be treated as long-term capital gains.
Distributions of net short-term capital gains in excess of net long-term capital losses generally will be taxable to you as ordinary income.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">The Code generally imposes a 3.8% Medicare contribution tax on the "net investment income" of certain individuals, trusts and estates to the extent their income exceeds certain threshold amounts. Net
investment income generally includes for this purpose dividends paid by the Fund, including any capital gain dividends and net capital gains recognized on the sale, redemption or exchange of shares of the Fund. Shareholders are advised to consult
their tax advisors regarding the possible implications of this additional tax on their investment in the Fund.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The
ultimate tax characterization of the Fund's distributions made in a taxable year cannot be determined finally until after the end of that taxable year. As a result, there is a possibility that the Fund may make total distributions during a taxable
year in an amount that exceeds the Fund's current and accumulated earnings and profits. In that case, the excess generally would be treated as return of capital and would reduce the shareholders' tax basis in the applicable shares, with any amounts
exceeding such basis treated as gain from the sale of such shares. A return of capital is not taxable, but it reduces a shareholder's tax basis in the shares, thus reducing any loss or increasing any gain on a subsequent taxable disposition by the
shareholder of the shares.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
<table width="100%">
<tr>
<td align="left" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">82 &#160;&#160;&#160;&#160; </FONT></p> </td>
<td align="left" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><b>PROSPECTUS</b> | PIMCO Dynamic Income Fund &#160;&#160;&#160;&#160; </FONT></p> </td> </tr>
</table><hr style="size:3;color:#999999;width:100%;"> <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;
</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
<tr>
<td align="right" width="29.5%" colspan="3"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
<tr>
<td align="right" width="29.5%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2">Fund distributions are taxable to shareholders
as described above even if they are paid from income or gains earned by the Fund before a shareholder's investment (and thus were included in the price the shareholder paid).</font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">A shareholder whose distributions are reinvested in Common Shares of the Fund under the Plan will be treated as having received a
dividend equal to either (i) if newly issued Common Shares are issued under the Plan, generally the fair market value of the newly issued Common Shares issued to the Common Shareholder or (ii) if reinvestment is made through open-market purchases
under the Plan, the amount of cash allocated to the Common Shareholder for the purchase of Common Shares on its behalf in the open market. See "Dividend Reinvestment Plan" above.</font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Distributions of net short-term capital gain (as reduced by any net long-term capital loss for the taxable year) will be taxable
to shareholders as ordinary income. The Fund may report certain dividends as derived from "qualified dividend income," which, when received by a non-corporate shareholder, will be taxed at the rates applicable to net capital gain, provided holding
period and other requirements are met at both the Common Shareholder and Fund levels.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The IRS currently requires a
regulated investment company that the IRS recognizes as having two or more "classes" of stock for U.S. federal income tax purposes to allocate to each such class proportionate amounts of each type of its income (such as ordinary income and capital
gains) based upon the percentage of total dividends distributed to each class for the tax year. Accordingly, as and when applicable, the Fund intends each tax year to allocate capital gain dividends between and among its Common Shares and each
series of its preferred shares in proportion to the total dividends paid to each class with respect to such tax year. Dividends qualifying and not qualifying for the dividends received deduction or as qualified dividend income will similarly be
allocated between and among Common Shares and each series of preferred shares, as and when issued.</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Taxes When You Sell Your
Shares<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Any gain resulting from the sale or other disposition of Fund shares that is treated as a sale or exchange for U.S. federal income tax purposes generally will be
taxable to shareholders as capital gains for U.S. federal income tax purposes.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">In the event that the Fund repurchases
a shareholder's Common Shares (as </font><font face="Arial, Helvetica, sans-serif" size="2">described above), shareholders who offer, and are able to sell, all of the </font><font face="Arial, Helvetica, sans-serif" size="2">shares they hold or are
deemed to hold in response to such tender offer </font><font face="Arial, Helvetica, sans-serif" size="2">generally will be treated as having sold their shares and generally will </font><font face="Arial, Helvetica, sans-serif" size="2">recognize a
capital gain or loss. In the case of shareholders who tender or </font><font face="Arial, Helvetica, sans-serif" size="2">are able to sell fewer than all of their shares, it is possible that any amounts </font><font
face="Arial, Helvetica, sans-serif" size="2">that the shareholder receives in such repurchase will be taxable as a </font><font face="Arial, Helvetica, sans-serif" size="2">dividend to such shareholder. In addition, there is a risk that shareholders
</font><font face="Arial, Helvetica, sans-serif" size="2">who do not tender any of their shares for repurchase, or whose percentage </font><font face="Arial, Helvetica, sans-serif" size="2">interest in the Fund otherwise increases as a result of the
tender offer, will </font><font face="Arial, Helvetica, sans-serif" size="2">be treated for U.S. federal income tax purposes as having received a taxable </font><font face="Arial, Helvetica, sans-serif" size="2">dividend distribution as a result of
their proportionate increase in the </font><font face="Arial, Helvetica, sans-serif" size="2">ownership of the Fund. The Fund's use of cash to repurchase shares could </font><font face="Arial, Helvetica, sans-serif" size="2">adversely affect its
ability to satisfy the distribution requirements for </font><font face="Arial, Helvetica, sans-serif" size="2">treatment as a regulated investment company. The Fund could also </font><font face="Arial, Helvetica, sans-serif" size="2">recognize
income in connection with its liquidation of portfolio securities to </font><font face="Arial, Helvetica, sans-serif" size="2">fund share repurchases. Any such income would be taken into account in </font><font
face="Arial, Helvetica, sans-serif" size="2">determining whether such distribution requirements are satisfied. </font></p>
<p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Subsidiaries<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund may invest in one or more
Subsidiaries that are treated as disregarded entities for U.S. federal income tax purposes. In the case of a Subsidiary that is so treated, for U.S. federal income tax purposes, (i) the Fund is treated as owning the Subsidiary&#8217;s assets
directly; (ii) any income, gain, loss, deduction or other tax items arising in respect of the Subsidiary&#8217;s assets will be treated as if they are realized or incurred, as applicable, directly by the Fund; and (iii) distributions, if any, the
Fund receives from the Subsidiary will have no effect on the Fund&#8217;s U.S. federal income tax liability.</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Foreign
(Non-U.S.) Taxes<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Income received by the Fund from sources within foreign countries may be subject to withholding and other taxes imposed by such countries, which will
reduce the return on those investments. If, at the close of its taxable year, more than 50% of the value of the Fund's total assets consists of securities of foreign corporations, including for this purpose foreign governments, the Fund will be
permitted to make an election under the Code that will allow shareholders a deduction or credit for foreign taxes paid by the Fund. If the Fund does not qualify for or chooses not to make such an election, shareholders will not be entitled
separately to claim a credit or deduction for U.S. federal income tax purposes with respect to foreign taxes paid by the Fund; in that case the foreign tax will nonetheless reduce the Fund's taxable income. Even if the Fund elects to pass through to
its shareholders foreign tax credits or deductions, tax-exempt shareholders and those who invest in the Fund through tax-advantaged accounts such as IRAs will not benefit from any such tax credit or deduction.</font></p>
<p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Certain Fund Investments<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund's transactions in foreign
currencies, foreign-currency denominated debt obligations, derivatives, short sales, or similar or related transactions could affect the amount, timing, or character of distributions from the&#160;Fund, and could increase the amount and accelerate
the timing for payment of taxes payable by shareholders. The Fund's investments in certain debt instruments could cause the Fund to recognize taxable income in excess of the cash generated by such investments (which may require the Fund to sell
other investments in order to make required distributions, including when it is not advantageous to do so).</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Backup
Withholding<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund is generally required to withhold and remit to the U.S. Treasury a percentage of the taxable distributions and redemption proceeds, if any, paid to
any shareholder who fails to properly furnish the Fund with a correct taxpayer identification number, who has under-reported dividend or interest income, or who fails to certify to the Fund that he, she or it is not subject to such
withholding.&#160;</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Shares Purchased Through Tax-Advantaged Plans<br> </b></b></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">Special tax rules apply to investments though defined contribution plans and other tax-advantaged plans. Common Shareholders should consult their tax advisors to determine the suitability of the Fund's
Common Shares as an investment through such plans and the precise effect of an investment on their particular tax situation.</font></p>
<p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>General<br> </b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The foregoing discussion relates solely to U.S.
federal income tax laws. </font><font face="Arial, Helvetica, sans-serif" size="2">Dividends and distributions also may be subject to state and local taxes. </font><font face="Arial, Helvetica, sans-serif" size="2">Common Shareholders are urged to
consult their tax advisors regarding </font><font face="Arial, Helvetica, sans-serif" size="2">specific questions as to federal, state, local, and, where applicable, foreign </font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
<table width="100%">
<tr>
<td align="right" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">December 21, 2017 | <b>PROSPECTUS</b></FONT></p> </td>
<td align="right" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">83</FONT></p> </td> </tr> </table><hr style="size:3;color:#999999;width:100%;">
<DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
<tr>
<td align="left" width="29.5%" colspan="3"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
<tr>
<td align="left" width="29.5%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2">taxes. Foreign investors should consult their tax
advisors concerning the tax </font><font face="Arial, Helvetica, sans-serif" size="2">consequences of ownership of Common Shares of the Fund. </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The foregoing is a general and
abbreviated summary of the applicable provisions of the Code and related regulations currently in effect. For the complete provisions, reference should be made to the pertinent Code sections and regulations. The Code and regulations are subject to
change by legislative or administrative actions.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Please see "Taxation" in the Statement of Additional Information for
additional information regarding the tax aspects of investing in Common Shares of the Fund.</font></p><a name="chapter_23_4636"></A><a name="chapter_23-sect1_1_4636"></A><p style="padding:0;margin-top:1em;margin-bottom:0em;"><font
face="Arial, Helvetica, sans-serif" size="3"><b>Custodian and Transfer Agent</b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The custodian of the assets of the Fund is State Street Bank and Trust Company, 801 Pennsylvania
Avenue, Kansas City, Missouri 64105. The custodian performs custodial and fund accounting services as well as sub-administrative services on behalf of the Fund.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">American Stock Transfer &#38; Trust Company, LLC, 6201 15th Avenue, Brooklyn, New York 11219, serves as the Fund's transfer agent, registrar, dividend disbursement agent and shareholder servicing agent,
as well as agent for the Fund's Dividend Reinvestment
Plan.</font></p><a name="chapter_24_4636"></A><a name="chapter_24-sect1_1_4636"></A><p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b>Independent Registered Public Accounting
Firm</b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">PricewaterhouseCoopers LLP ("PwC"), 1100 Walnut Street, Suite 1300, Kansas City, MO 64106, serves as independent registered public accounting firm for the Fund. PwC provides
audit services, tax and other audit related services to the
Fund.</font></p><a name="chapter_25_4636"></A><a name="chapter_25-sect1_1_4636"></A><p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b>Legal Matters</b></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Certain legal matters will be passed on for the Fund by Ropes &#38; Gray LLP, Boston, Massachusetts.</font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
<table width="100%">
<tr>
<td align="left" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">84 &#160;&#160;&#160;&#160; </FONT></p> </td>
<td align="left" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><b>PROSPECTUS</b> | PIMCO Dynamic Income Fund &#160;&#160;&#160;&#160; </FONT></p> </td> </tr>
</table><hr style="size:3;color:#999999;width:100%;"> <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;
</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p><a name="chapter_26_4636"></A><a name="chapter_26-sect1_1_4636">
</A>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
<tr>
<td align="right" width="29.5%" colspan="3"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
<tr>
<td align="right" width="29.5%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p style="padding:0;margin-top:1em;margin-bottom:0em;" align="center"><font
face="Arial, Helvetica, sans-serif" size="3"><b>Table of Contents for the Statement of Additional Information</b></font></p> <p style="margin-top:5px;margin-bottom:0px;"><FONT SIZE="0.5" face="Arial, Helvetica, sans-serif">&#160;</FONT></p>
<table margin="0" cellspacing="0" cellpadding="0" border="0px" width="100%">
<tr>
<td valign="bottom" align="left" width="90.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> The Fund </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">&#160;&#160;&#160;&#160;3</font></p> </td> </tr>
<tr style="background-color:#d6f7fa;">
<td valign="bottom" align="left" width="90.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Investment Objectives and Policies </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">&#160;&#160;&#160;&#160;3</font></p> </td> </tr>
<tr>
<td valign="bottom" align="left" width="90.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Investment Restrictions </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">&#160;&#160;80</font></p> </td> </tr>
<tr style="background-color:#d6f7fa;">
<td valign="bottom" align="left" width="90.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Management of the Fund </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">&#160;&#160;84</font></p> </td> </tr>
<tr>
<td valign="bottom" align="left" width="90.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Investment Manager </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 101 </font></p> </td> </tr>
<tr style="background-color:#d6f7fa;">
<td valign="bottom" align="left" width="90.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Portfolio Transactions</font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 110 </font></p> </td> </tr>
<tr>
<td valign="bottom" align="left" width="90.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Distributions </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 113 </font></p> </td> </tr>
<tr style="background-color:#d6f7fa;">
<td valign="bottom" align="left" width="90.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Description of Shares </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 113 </font></p> </td> </tr>
<tr>
<td valign="bottom" align="left" width="90.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Anti-Takeover and Other Provisions in the Declaration of Trust </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 114 </font></p> </td> </tr>
<tr style="background-color:#d6f7fa;">
<td valign="bottom" align="left" width="90.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Repurchase of Common Shares; Conversion to Open-End Fund </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 116 </font></p> </td> </tr>
<tr>
<td valign="bottom" align="left" width="90.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Taxation </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 118 </font></p> </td> </tr>
<tr style="background-color:#d6f7fa;">
<td valign="bottom" align="left" width="90.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Performance Related and Comparative Information </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 135 </font></p> </td> </tr>
<tr>
<td valign="bottom" align="left" width="90.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Custodian, Transfer Agent and Dividend Disbursement Agent </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 136 </font></p> </td> </tr>
<tr style="background-color:#d6f7fa;">
<td valign="bottom" align="left" width="90.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Independent Registered Public Accounting Firm </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 136 </font></p> </td> </tr>
<tr>
<td valign="bottom" align="left" width="90.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Counsel </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 136 </font></p> </td> </tr>
<tr style="background-color:#d6f7fa;">
<td valign="bottom" align="left" width="90.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Registration Statement </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 136 </font></p> </td> </tr>
<tr>
<td valign="bottom" align="left" width="90.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Financial Statements </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 137 </font></p> </td> </tr>
<tr style="background-color:#d6f7fa;">
<td valign="bottom" align="left" width="90.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Appendix A &#8212; Procedures for Shareholders to Submit Nominee Candidates </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> A-1 </font></p> </td> </tr></table> <p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
<table width="100%">
<tr>
<td align="left" width="50%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><br>
<img src="g450385pr4636img005.jpg"><br></FONT></p> </td>
<td align="right" width="46.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">PIMCO Dynamic Income Fund | <b>PROSPECTUS</b></FONT></p> </td>
<td align="right" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">85</FONT></p> </td> </tr> </table><hr style="size:3;color:#999999;width:100%;">
<DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;
</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p><a name="chapter_27_4636"></A><a name="chapter_27-sect1_1_4636"></A>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
<tr>
<td align="left" width="29.5%" colspan="3"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
<tr>
<td align="left" width="29.5%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table>
<p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b>Appendix A<br> Description of Securities Ratings<br> </b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">The Fund's investments may range in quality from securities rated in the lowest category to securities rated in the highest category (as rated by Moody's, S&#38;P or Fitch or, if unrated, determined by
PIMCO to be of comparable quality). The percentage of the Fund's assets invested in securities in a particular rating category will vary. The following terms are generally used to describe the credit quality of fixed income securities:</font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"><i>High Quality Debt Securities</i> are those rated in one of the two highest rating categories (the highest category for
commercial paper) or, if unrated, deemed comparable by PIMCO.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"><i>Investment Grade Debt Securities</i> are those rated
in one of the four highest rating categories, or, if unrated, deemed comparable by PIMCO.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"><i>Below Investment Grade,
High Yield Securities ("Junk Bonds")</i> are those rated lower than Baa3 by Moody's, BBB- by S&#38;P or Fitch and comparable securities. They are deemed predominately speculative with respect to the issuer's ability to repay principal and
interest.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The following is a description of Moody's, S&#38;P's and Fitch's rating categories applicable to fixed
income securities.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Moody's Investors Service,
Inc.</b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"><b>Long-Term Corporate Obligation Ratings</b><br> Moody's long-term obligation ratings are opinions of the relative credit risk of fixed income obligations with an
original maturity of one year or more. They address the possibility that a financial obligation will not be honored as promised. Such ratings use Moody's Global Scale and reflect both the likelihood of default and any financial loss suffered in the
event of default.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Aaa: Obligations rated Aaa are judged to be of the highest quality,&#160;subject to the lowest level
of&#160;credit risk.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Aa: Obligations rated Aa are judged to be of high quality and are subject to very low credit
risk.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">A: Obligations rated A are judged to be upper-medium grade and are subject to low credit risk.</font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Baa: Obligations rated Baa are judged to be medium-grade and subject to moderate credit risk and as such may possess certain speculative
characteristics.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Ba: Obligations rated Ba are judged to&#160;be speculative&#160;and are subject to substantial credit
risk.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">B: Obligations rated B are considered speculative and are subject to high credit risk.</font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Caa: Obligations rated Caa are judged to be speculative of poor standing and are subject to very high credit risk.</font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Ca: Obligations rated Ca are highly speculative and are likely in, or very near, default, with some prospect of recovery of principal and
interest.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">C: Obligations rated C are the lowest rated and are typically in default, with little prospect for recovery
of principal or interest.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Moody's appends numerical modifiers 1, 2, and 3 to each generic rating </font><font
face="Arial, Helvetica, sans-serif" size="2">classification from Aa through Caa. The modifier 1 indicates that the </font><font face="Arial, Helvetica, sans-serif" size="2">obligation ranks in the higher end of its generic rating category; the
</font><font face="Arial, Helvetica, sans-serif" size="2">modifier 2 indicates a mid-range ranking; and the modifier 3 indicates a </font><font face="Arial, Helvetica, sans-serif" size="2">ranking in the lower end of that generic rating category.
Additionally, a </font><font face="Arial, Helvetica, sans-serif" size="2">"(hyb)" indicator is appended to all ratings of hybrid securities issued by </font><font face="Arial, Helvetica, sans-serif" size="2">banks, insurers, finance companies, and
securities firms. </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"><b>Medium-Term Note Program Ratings</b><b><br> </b></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Moody's assigns provisional ratings to medium-term note (MTN) programs and definitive ratings to the individual debt securities issued
from them (referred to as drawdowns or notes).</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">MTN program ratings are intended to reflect the ratings likely to be
assigned to drawdowns issued from the program with the specified priority of claim (e.g. senior or subordinated). To capture the contingent nature of a program rating, Moody's assigns provisional ratings to MTN programs. A provisional rating is
denoted by a (P) in front of the rating.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The rating assigned to a drawdown from a rated MTN or bank/deposit note
program is definitive in nature, and may differ from the program rating if the drawdown is exposed to additional credit risks besides the issuer's default, such as links to the defaults of other issuers, or has other structural features that warrant
a different rating. In some circumstances, no rating may be assigned to a drawdown.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Moody's encourages market
participants to contact Moody's Ratings Desks or visit www.moodys.com directly if they have questions regarding ratings for specific notes issued under a medium-term note program. Unrated notes issued under an MTN program may be assigned an NR (not
rated) symbol.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"><b>Short-Term Ratings</b><br> Moody's
short-term ratings are opinions of the ability of issuers to honor short-term financial obligations. Ratings may be assigned to issuers, short-term programs or to individual short-term debt instruments. Such obligations generally have an original
maturity not exceeding thirteen months, unless explicitly noted.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Moody's employs the following designations to
indicate the relative repayment ability of rated issuers:</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">P-1: Issuers (or supporting institutions) rated Prime-1 have
a superior ability to repay short-term debt obligations.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">P-2: Issuers (or supporting institutions) rated Prime-2 have
a strong ability to repay short-term debt obligations.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">P-3: Issuers (or supporting institutions) rated Prime-3 have an
acceptable ability to repay short-term obligations.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">NP: Issuers (or supporting institutions) rated Not Prime do not
fall within any of the Prime rating categories.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2"><b>National Scale Long-Term Ratings</b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Moody's long-term
National Scale Ratings (NSRs) are opinions of the </font><font face="Arial, Helvetica, sans-serif" size="2">relative creditworthiness of issuers and financial obligations within a </font><font face="Arial, Helvetica, sans-serif" size="2">particular
country. NSRs are not designed to be compared among countries; </font><font face="Arial, Helvetica, sans-serif" size="2">rather, they address relative credit risk within a given country. Moody's </font><font
face="Arial, Helvetica, sans-serif" size="2">assigns national scale ratings in certain local capital markets in which </font><font face="Arial, Helvetica, sans-serif" size="2">investors have found the global rating scale provides inadequate </font><font
face="Arial, Helvetica, sans-serif" size="2">differentiation among credits or is inconsistent with a rating scale already in </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
<table width="100%">
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<td align="left" width="50%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><br>
<img src="g450385pr4636img005.jpg"><br></FONT></p> </td>
<td align="right" width="46.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">PIMCO Dynamic Income Fund | <b>PROSPECTUS</b></FONT></p> </td>
<td align="right" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">86</FONT></p> </td> </tr> </table><hr style="size:3;color:#999999;width:100%;">
<DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
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<td align="right" width="29.5%" colspan="3"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
<tr>
<td align="right" width="29.5%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2">common use in the country. In each specific
country, the last two characters </font><font face="Arial, Helvetica, sans-serif" size="2">of the rating indicate the country in which the issuer is located (</font><font face="Arial, Helvetica, sans-serif" size="2"><i>e.g.</i></font><font
face="Arial, Helvetica, sans-serif" size="2">, Aaa.br </font><font face="Arial, Helvetica, sans-serif" size="2">for Brazil). </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Aaa.n: Issuers or issues rated Aaa.n demonstrate the
strongest creditworthiness relative to other domestic issuers.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Aa.n: Issuers or issues rated Aa.n demonstrate very
strong creditworthiness relative to other domestic issuers.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">A.n: Issuers or issues rated A.n present above-average
creditworthiness relative to other domestic issuers.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Baa.n: Issuers or issues rated Baa.n represent average
creditworthiness relative to other domestic issuers.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Ba.n: Issuers or issues rated Ba.n demonstrate below-average
creditworthiness relative to other domestic issuers.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">B.n: Issuers or issues rated B.n demonstrate weak
creditworthiness relative to other domestic issuers.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Caa.n: Issuers or issues rated Caa.n demonstrate very weak
creditworthiness relative to other domestic issuers.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Ca.n: Issuers or issues rated Ca.n demonstrate extremely weak
creditworthiness relative to other domestic issuers.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">C.n: Issuers or issues rated C.n demonstrate the weakest
creditworthiness relative to other domestic issuers.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Moody's appends numerical modifiers 1, 2, and 3 to each generic
rating classification from Aa through Caa. The modifier 1 indicates that the obligation ranks in the higher end of its generic rating category; the modifier 2 indicates a mid-range ranking; and the modifier 3 indicates a ranking in the lower end of
that generic rating category. National scale long-term ratings of D.ar and E.ar may also be applied to Argentine obligations.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"><b>National Scale Short-Term Ratings</b><br> Moody's short-term NSRs are opinions of the ability of issuers in a given country, relative
to other domestic issuers, to repay debt obligations that have an original maturity not exceeding thirteen months. Short-term NSRs in one country should not be compared with short-term NSRs in another country, or with Moody's global
ratings.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">There are four categories of short-term national scale ratings, generically denoted N-1 through N-4 as
defined below.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">In each specific country, the first two letters indicate the country in which the issuer is located
(<i>e.g.</i>, BR-1 through BR-4 for Brazil).</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">N-1: Issuers rated N-1 have the strongest ability to repay short-term
senior unsecured debt obligations relative to other domestic issuers.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">N-2: Issuers rated N-2 have an above average
ability to repay short-term senior unsecured debt obligations relative to other domestic issuers.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">N-3: Issuers rated
N-3 have an average ability to repay short-term senior unsecured debt obligations relative to other domestic issuers.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2">N-4: Issuers rated N-4 have a below average ability to repay short-term senior unsecured debt obligations relative to other domestic issuers.</font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The short-term rating symbols P-1.za, P-2.za, P-3.za and NP.za are used in South Africa. National scale short-term ratings of AR-5 and
AR-6 may also be applied to Argentine obligations.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"><b>US Municipal Short-Term Debt and Demand Obligation
Ratings</b><br> <b>Short-Term Obligation Ratings</b><br> There are three rating categories for short-term municipal obligations that are considered investment grade. These ratings are designated as Municipal Investment Grade (MIG) and are divided
into three levels&#8212;MIG 1 through MIG 3. In addition, those short-term obligations that are of speculative quality are designated SG, or speculative grade. MIG ratings expire at the maturity of the obligation.</font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">MIG 1: This designation denotes superior credit quality. Excellent protection is afforded by established cash flows, highly reliable
liquidity support, or demonstrated broad-based access to the market for refinancing.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">MIG 2: This designation denotes
strong credit quality. Margins of protection are ample, although not as large as in the preceding group.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">MIG 3: This
designation denotes acceptable credit quality. Liquidity and cash-flow protection may be narrow, and market access for refinancing is likely to be less well-established.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2">SG: This designation denotes speculative-grade credit quality. Debt instruments in this category may lack sufficient margins of protection.</font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"><b>Demand Obligation Ratings</b><br> In the case of variable rate demand obligations (VRDOs), a two-component rating is assigned: a long-
or short-term debt rating and a demand obligation rating. The first element represents Moody's evaluation of risk associated with scheduled principal and interest payments. The second element represents Moody's evaluation of risk associated with the
ability to receive purchase price upon demand ("demand feature"). The second element uses a rating from a variation of the MIG scale called the Variable Municipal Investment Grade (VMIG) scale.</font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">VMIG 1: This designation denotes superior credit quality. Excellent protection is afforded by the superior short-term credit strength of
the liquidity provider and structural and legal protections that ensure the timely payment of purchase price upon demand.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">VMIG 2: This designation denotes strong credit quality. Good protection is afforded by the strong short-term credit strength of the liquidity provider and structural and legal protections that ensure the
timely payment of purchase price upon demand.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">VMIG 3: This designation denotes acceptable credit quality. Adequate
protection is afforded by the satisfactory short-term credit strength of the liquidity provider and structural and legal protections that ensure the timely payment of purchase price upon demand.</font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">SG: This designation denotes speculative-grade credit quality. Demand features rated in this category may be supported by a liquidity
provider that does not have an investment grade short-term rating or may lack the structural and/or legal protections necessary to ensure the timely payment of purchase price upon demand.</font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
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<td align="right" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">December 21, 2017 | <b>PROSPECTUS</b></FONT></p> </td>
<td align="right" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">87</FONT></p> </td> </tr> </table><hr style="size:3;color:#999999;width:100%;">
<DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
<tr>
<td align="left" width="29.5%" colspan="3"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
<tr>
<td align="left" width="29.5%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table>
<p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>S&#38;P Global Ratings ("S&#38;P")</b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"><b>Long-Term Issue Credit
Ratings</b><br> Issue credit ratings are based, in varying degrees, on S&#38;P's analysis of the following considerations:</font></p> <p style="padding:0;margin:0;">
<div face="Arial, Helvetica, sans-serif" size="2" style="padding-left:8;position: absolute; height:1em; text-align:left; margin:0;valing:top;">&#9632;</div>
<p style="padding-left:24;margin:0;"><font face="Arial, Helvetica, sans-serif" size="2">Likelihood of payment&#8212;capacity and willingness of the obligor to meet its financial commitment on a financial obligation in accordance with the terms of
the obligation;</font></p> <p></p> <p style="padding:0;margin:0;"> <div face="Arial, Helvetica, sans-serif" size="2" style="padding-left:8;position: absolute; height:1em; text-align:left; margin:0;valing:top;">&#9632;</div>
<p style="padding-left:24;margin:0;"><font face="Arial, Helvetica, sans-serif" size="2">Nature and provisions of the obligation and the promise S&#38;P imputes; and</font></p> <p></p> <p style="padding:0;margin:0;">
<div face="Arial, Helvetica, sans-serif" size="2" style="padding-left:8;position: absolute; height:1em; text-align:left; margin:0;valing:top;">&#9632;</div>
<p style="padding-left:24;margin:0;"><font face="Arial, Helvetica, sans-serif" size="2">Protection afforded by, and relative position of, the financial obligation in the event of a bankruptcy, reorganization, or other arrangement under the laws of
bankruptcy and other laws affecting creditors' rights.</font></p> <p></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Issue ratings are an assessment of default risk, but
may incorporate an assessment of relative seniority or ultimate recovery in the event of default. Junior obligations are typically rated lower than senior obligations, to reflect the lower priority in bankruptcy, as noted above. (Such
differentiation may apply when an entity has both senior and subordinated obligations, secured and unsecured obligations, or operating company and holding company obligations.)</font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"><b>Investment Grade</b><br> AAA: An obligation rated 'AAA' has the highest rating assigned by S&#38;P. The obligor's capacity to
meet its financial commitment on the obligation is extremely strong.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">AA: An obligation rated 'AA' differs from the
highest-rated obligations only to a small degree. The obligor's capacity to meet its financial commitment on the obligation is very strong.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">A: An obligation rated 'A' is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than obligations in higher-rated categories. However, the obligor's
capacity to meet its financial commitment on the obligation is still strong.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">BBB: An obligation rated &#8216;BBB'
exhibits adequate protection parameters. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitment on the obligation.</font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"><b>Speculative Grade</b><br> Obligations rated 'BB', 'B', 'CCC', 'CC',
and 'C' are regarded as having significant speculative characteristics. 'BB' indicates the least degree of speculation and 'C' the highest. While such obligations will likely have some quality and protective characteristics, these may be outweighed
by large uncertainties or major exposures to adverse conditions.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">BB: An obligation rated 'BB' is less vulnerable to
nonpayment than other speculative issues. However, it faces major ongoing uncertainties or exposure to adverse business, financial, or economic conditions which could lead to the obligor's inadequate capacity to meet its financial commitment on the
obligation.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">B: An obligation rated 'B' is more vulnerable to nonpayment than </font><font
face="Arial, Helvetica, sans-serif" size="2">obligations rated 'BB', but the obligor currently has the capacity to meet its </font><font face="Arial, Helvetica, sans-serif" size="2">financial commitment on the obligation. Adverse business,
financial, or </font><font face="Arial, Helvetica, sans-serif" size="2">economic conditions will likely impair the obligor's capacity or willingness to </font><font face="Arial, Helvetica, sans-serif" size="2">meet its financial commitment on the
obligation. </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">CCC: An obligation rated 'CCC' is currently vulnerable to nonpayment, and is dependent upon favorable
business, financial, and economic conditions for the obligor to meet its financial commitment on the obligation. In the event of adverse business, financial, or economic conditions, the obligor is not likely to have the capacity to meet its
financial commitment on the obligation.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">CC: An obligation rated 'CC' is currently highly vulnerable to nonpayment. The
&#8216;CC' rating is used when a default has not yet occurred, but S&#38;P expects default to be a virtual certainty, regardless of the anticipated time to default.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">C: An obligation rated &#8216;C' is currently highly vulnerable to nonpayment, and the obligation is expected to have lower relative seniority or lower ultimate recovery compared to obligations that are
rated higher.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">D: An obligation rated &#8216;D' is in default or in breach of an imputed promise. For non-hybrid
capital instruments, the &#8216;D' rating category is used when payments on an obligation are not made on the date due, unless S&#38;P believes that such payments will be made within five business days in the absence of a stated grace period or
within the earlier of the stated grace period or 30 calendar days. The &#8216;D' rating also will be used upon the filing of a bankruptcy petition or the taking of similar action and where default on an obligation is a virtual certainty, for example
due to automatic stay provisions. An obligation's rating is lowered to &#8216;D' if it is subject to a distressed exchange offer.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">NR: This indicates that no rating has been requested, that there is insufficient information on which to base a rating, or that S&#38;P does not rate a particular obligation as a matter of
policy.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Plus (+) or minus (-): The ratings from &#8216;AA' to 'CCC' may be modified by the addition of a plus (+) or
minus (-) sign to show relative standing within the major rating categories.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"><b>Short-Term Issue Credit Ratings</b><br> A-1: A short-term obligation rated 'A-1' is rated in the highest category by S&#38;P. The obligor's capacity to meet its financial commitment on the obligation
is strong. Within this category, certain obligations are designated with a plus sign (+). This indicates that the obligor's capacity to meet its financial commitment on these obligations is extremely strong.</font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">A-2: A short-term obligation rated 'A-2' is somewhat more susceptible to the adverse effects of changes in circumstances and economic
conditions than obligations in higher rating categories. However, the obligor's capacity to meet its financial commitment on the obligation is satisfactory.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">A-3: A short-term obligation rated 'A-3' exhibits adequate protection parameters. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the
obligor to meet its financial commitment on the obligation.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">B: A short-term obligation rated 'B' is regarded as
vulnerable and has significant speculative characteristics.&#160;The obligor currently has the capacity to meet its financial commitments; however, it faces major ongoing uncertainties which could lead to the obligor's inadequate capacity to meet
its financial commitments.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
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<td align="left" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><b>PROSPECTUS</b> | PIMCO Dynamic Income Fund &#160;&#160;&#160;&#160; </FONT></p> </td> </tr>
</table><hr style="size:3;color:#999999;width:100%;"> <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;
</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
<tr>
<td align="right" width="29.5%" colspan="3"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
<tr>
<td align="right" width="29.5%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2">C: A short-term obligation rated 'C' is
currently vulnerable to nonpayment and is dependent upon favorable business, financial, and economic conditions for the obligor to meet its financial commitment on the obligation.</font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">D: A short-term obligation rated &#8216;D' is in default or in breach of an imputed promise. For non-hybrid capital instruments,
the &#8216;D' rating category is used when payments on an obligation are not made on the date due, unless S&#38;P believes that such payments will be made within any stated grace period. However, any stated grace period longer than five business
days will be treated as five business days. The &#8216;D' rating also will be used upon the filing of a bankruptcy petition or the taking of a similar action and where default on an obligation is a virtual certainty, for example due to automatic
stay provisions. An obligation's rating is lowered to &#8216;D' if it is subject to a distressed exchange offer.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Dual
Ratings: Dual ratings may be assigned to debt issues that have a put option or demand feature. The first component of the rating addresses the likelihood of repayment of principal and interest as due, and the second component of the rating addresses
only the demand feature. The first component of the rating can relate to either a short-term or long-term transaction and accordingly use either short-term or long-term rating symbols. The second component of the rating relates to the put option and
is assigned a short-term rating symbol (for example, &#8216;AAA/A-1+' or &#8216;A-1+/A-1'). With U.S. municipal short-term demand debt, the U.S. municipal short-term note rating symbols are used for the first component of the rating (for example,
&#8216;SP-1+/A-1+').</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"><b>Active Qualifiers</b><br> S&#38;P uses the following qualifiers that limit the scope of a
rating. The structure of the transaction can require the use of a qualifier such as a 'p' qualifier, which indicates the rating addressed the principal portion of the obligation only. A qualifier appears as a suffix and is part of the
rating.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">L: Ratings qualified with &#8216;L' apply only to amounts invested up to federal deposit insurance
limits.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">p: This suffix is used for issues in which the credit factors, the terms, or both, that determine the
likelihood of receipt of payment of principal are different from the credit factors, terms or both that determine the likelihood of receipt of interest on the obligation. The &#8216;p' suffix indicates that the rating addresses the principal portion
of the obligation only and that the interest is not rated.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">prelim: Preliminary ratings, with the &#8216;prelim'
suffix, may be assigned to obligors or obligations, including financial programs, in the circumstances described below. Assignment of a final rating is conditional on the receipt by S&#38;P of appropriate documentation. S&#38;P reserves the right
not to issue a final rating. Moreover, if a final rating is issued, it may differ from the preliminary rating.</font></p> <p style="padding:0;margin:0;">
<div face="Arial, Helvetica, sans-serif" size="2" style="padding-left:8;position: absolute; height:1em; text-align:left; margin:0;valing:top;">&#9632;</div>
<p style="padding-left:24;margin:0;"><font face="Arial, Helvetica, sans-serif" size="2">Preliminary ratings may be assigned to obligations, most commonly structured and project finance issues, pending receipt of final documentation and legal
opinions.</font></p> <p></p> <p style="padding:0;margin:0;"> <div face="Arial, Helvetica, sans-serif" size="2" style="padding-left:8;position: absolute; height:1em; text-align:left; margin:0;valing:top;">&#9632;</div>
<p style="padding-left:24;margin:0;"><font face="Arial, Helvetica, sans-serif" size="2">Preliminary ratings may be assigned to obligations that will likely be issued upon the obligor's emergence from bankruptcy or similar reorganization, based on
late-stage reorganization plans, documentation and discussions with the obligor. Preliminary ratings may also be assigned to the obligors. These ratings consider the anticipated general credit quality of the reorganized or post-bankruptcy issuer as
well as attributes of the anticipated obligation(s). </font></p> <p style="padding-left:24;margin:0;"><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p></p> <p style="padding:0;margin:0;">
<div face="Arial, Helvetica, sans-serif" size="2" style="padding-left:8;position: absolute; height:1em; text-align:left; margin:0;valing:top;">&#9632;</div>
<p style="padding-left:24;margin:0;"><font face="Arial, Helvetica, sans-serif" size="2">Preliminary ratings may be assigned to entities that are being formed or that are in the process of being independently established when, in S&#38;P opinion,
documentation is close to final. Preliminary ratings may also be assigned to the&#160;obligations of these entities.</font></p> <p></p> <p style="padding:0;margin:0;">
<div face="Arial, Helvetica, sans-serif" size="2" style="padding-left:8;position: absolute; height:1em; text-align:left; margin:0;valing:top;">&#9632;</div>
<p style="padding-left:24;margin:0;"><font face="Arial, Helvetica, sans-serif" size="2">Preliminary ratings may be assigned when a previously unrated entity is undergoing a well-formulated restructuring, recapitalization, significant financing or
other transformative event, generally at the point that investor or lender commitments are invited. The preliminary rating may be assigned to the entity and to its proposed obligation(s). These preliminary ratings consider the anticipated general
credit quality of the obligor, as well as attributes of the anticipated obligation(s), assuming successful completion of the transformative event. Should the transformative event not occur, S&#38;P would likely withdraw these preliminary
ratings.</font></p> <p></p> <p style="padding:0;margin:0;"> <div face="Arial, Helvetica, sans-serif" size="2" style="padding-left:8;position: absolute; height:1em; text-align:left; margin:0;valing:top;">&#9632;</div>
<p style="padding-left:24;margin:0;"><font face="Arial, Helvetica, sans-serif" size="2">A preliminary recovery rating may be assigned to an obligation that has a preliminary issue credit rating.</font></p> <p></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">t: This symbol indicates termination structures that are designed to honor their contracts to full maturity or, should certain events
occur, to terminate and cash settle all their contracts before their final maturity date.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">cir: This symbol indicates a
Counterparty Instrument Rating (CIR), which is a forward-looking opinion about the creditworthiness of an issuer in a securitization structure with respect to a specific financial obligation to a counterparty (including interest rate swaps, currency
swaps, and liquidity facilities). The CIR is determined on an ultimate payment basis; these opinions do not take into account timeliness of payment.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"><b>Inactive Qualifiers (no longer applied or outstanding)</b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">*:This
symbol that indicated that the rating was contingent upon S&#38;P receipt of an executed copy of the escrow agreement or closing documentation confirming investments and cash flows. Discontinued use in August 1998.</font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">c: This qualifier was used to provide additional information to investors that the bank may terminate its obligation to purchase tendered
bonds if the long-term credit rating of the issuer was lowered to below an investment-grade level and/or the issuer's bonds were deemed taxable. Discontinued use in January 2001.</font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">G: The letter 'G' followed the rating symbol when a fund's portfolio consisted primarily of direct U.S. government
securities.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">pi: This qualifier was used to indicate ratings that were based on an analysis of an issuer's published
financial information, as well as additional information in the public domain. Such ratings did not, however, reflect in-depth meetings with an issuer's management and therefore, could have been based on less comprehensive information than ratings
without a 'pi' suffix. Discontinued use as of December 2014 and as of August 2015 for Lloyd's Syndicate Assessments.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2">pr: The letters 'pr' indicate that the rating was provisional. A provisional </font><font face="Arial, Helvetica, sans-serif" size="2">rating assumed the successful completion of a project
financed by the debt </font><font face="Arial, Helvetica, sans-serif" size="2">being rated and indicates that payment of debt service requirements was </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
<table width="100%">
<tr>
<td align="right" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">December 21, 2017 | <b>PROSPECTUS</b></FONT></p> </td>
<td align="right" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">89</FONT></p> </td> </tr> </table><hr style="size:3;color:#999999;width:100%;">
<DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
<tr>
<td align="left" width="29.5%" colspan="3"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
<tr>
<td align="left" width="29.5%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2">largely or entirely dependent upon the successful,
timely completion of the </font><font face="Arial, Helvetica, sans-serif" size="2">project. This rating, however, while addressing credit quality subsequent to </font><font face="Arial, Helvetica, sans-serif" size="2">completion of the project, made
no comment on the likelihood of or the risk </font><font face="Arial, Helvetica, sans-serif" size="2">of default upon failure of such completion. </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">q: A &#8216;q' subscript indicates
that the rating is based solely on quantitative analysis of publicly available information. Discontinued use in April 2001.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">r: The &#8216;r' modifier was assigned to securities containing extraordinary risks, particularly market risks, which are not covered in the credit rating. The absence of an &#8216;r' modifier should not
be taken as an indication that an obligation would not exhibit extraordinary non-credit related risks. S&#38;P discontinued the use of the &#8216;r' modifier for most obligations in June 2000 and for the balance of obligations (mainly structured
finance transactions) in November 2002.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Fitch
Ratings</b></b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"><b>Long-Term Credit Ratings<br> Investment Grade<br> </b> AAA: Highest credit quality. &#8216;AAA'
ratings denote the lowest expectation of credit risk. They are assigned only in cases of exceptionally strong capacity for payment of financial commitments. This capacity is highly unlikely to be adversely affected by foreseeable events.</font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">AA: Very high credit quality. 'AA' ratings denote expectations of very&#160;low credit risk. They indicate very strong capacity
for&#160;payment of financial commitments. This capacity is not significantly vulnerable to foreseeable events.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">A:
High credit quality. 'A' ratings denote expectations of low credit risk. The capacity for payment of financial commitments is considered strong. This capacity may, nevertheless, be more vulnerable to adverse business or economic conditions than is
the case for higher ratings.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">BBB: Good credit quality. 'BBB' ratings indicate that expectations of credit risk are
currently low. The capacity for payment of financial commitments is considered adequate but adverse business or economic conditions are more likely to impair this capacity.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2"><b>Speculative Grade</b><br> BB: Speculative. &#8216;BB' ratings indicate an elevated vulnerability to credit risk, particularly in the event of adverse changes in business or economic conditions
over time; however, business or financial alternatives may be available to allow financial commitments to be met.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">B:
Highly speculative. &#8216;B' ratings indicate that material credit risk is present.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">CCC: Substantial credit
risk.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">CC: Very high levels of credit risk.</font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">C: Exceptionally high levels of credit risk.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">Defaulted obligations typically are not assigned 'RD' or&#160;&#8216;D' ratings, but are instead rated in the &#8216;B' to &#8216;C' rating categories, depending on their recovery prospects and other
relevant characteristics. This approach better aligns obligations that have comparable overall expected loss but varying vulnerability to default and loss.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">The modifiers "&#43;" or "-" may be appended to a rating to denote relative </font><font face="Arial, Helvetica, sans-serif" size="2">status within major rating categories. For example, the rating
category 'AA' </font><font face="Arial, Helvetica, sans-serif" size="2">has three notch-specific rating levels ('AA&#43;'; 'AA'; 'AA-'; each a rating level). </font><font face="Arial, Helvetica, sans-serif" size="2">Such suffixes are not added to
the 'AAA' obligation rating category, or to </font><font face="Arial, Helvetica, sans-serif" size="2">corporate finance obligation ratings in the categories below 'CCC.' </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2">The subscript &#8216;emr' is appended to a rating to denote embedded market risk that is beyond the scope of the rating. The designation is intended to make clear that the rating solely addresses
the counterparty risk of the issuing bank. It is not meant to indicate any limitation in the analysis of the counterparty risk, which in all other respects follows published Fitch criteria for analyzing the issuing financial institution. Fitch does
not rate these instruments where the principal is to any degree subject to market risk.&#160;</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"><b>Recovery Ratings</b><br> Recovery Ratings are assigned to selected individual
securities and obligations, most frequently for individual obligations of corporate finance issuers with Issuer Default Ratings (IDRs) in speculative grade categories.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">Among the factors that affect recovery rates for securities are the collateral, the seniority relative to other obligations in the capital structure (where appropriate), and the expected value of the
company or underlying collateral in distress.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Recovery Rating scale is based on the expected relative recovery
characteristics of an obligation upon the curing of a default, emergence from insolvency or following the liquidation or termination of the obligor or its associated collateral.</font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Recovery Ratings are an ordinal scale and do not attempt to precisely predict a given level of recovery. As a guideline in
developing the rating assessments, the agency employs broad theoretical recovery bands in its ratings approach based on historical averages and analytical judgment, but actual recoveries for a given security may deviate materially from historical
averages.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">RR1: <i>Outstanding recovery prospects given default.</i> &#8216;RR1' rated securities have characteristics
consistent with securities historically recovering 91%-100% of current principal and related interest.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">RR2:
<i>Superior recovery prospects given default.</i> &#8216;RR2' rated securities have characteristics consistent with securities historically recovering 71%-90% of current principal and related interest.</font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">RR3: <i>Good recovery prospects given default.</i> &#8216;RR3' rated securities have characteristics consistent with securities
historically recovering 51%-70% of current principal and related interest.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">RR4: <i>Average recovery prospects given
default.</i> &#8216;RR4' rated securities have characteristics consistent with securities historically recovering 31%-50% of current principal and related interest.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">RR5: <i>Below average recovery prospects given default.</i>&#160;&#8216;RR5' rated securities have characteristics consistent with securities historically recovering 11%-30% of current principal and
related interest.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">RR6: <i>Poor recovery prospects given default.</i> &#8216;RR6' rated securities have characteristics
consistent with securities historically recovering 0%-10% of current principal and related interest.</font></p><a name="chapter_27-sect1_2_4636"></A><p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"><b>Short-Term Credit Ratings </b></font><font face="Arial, Helvetica, sans-serif" size="2"><br></font><font face="Arial, Helvetica, sans-serif" size="2">A short-term issuer or obligation rating is based
in all cases on the short-</font><font face="Arial, Helvetica, sans-serif" size="2">term vulnerability to default of the rated entity and relates to the capacity to </font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
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<td align="left" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">90 &#160;&#160;&#160;&#160; </FONT></p> </td>
<td align="left" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><b>PROSPECTUS</b> | PIMCO Dynamic Income Fund &#160;&#160;&#160;&#160; </FONT></p> </td> </tr>
</table><hr style="size:3;color:#999999;width:100%;"> <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;
</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
<tr>
<td align="right" width="29.5%" colspan="3"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
<tr>
<td align="right" width="29.5%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="right" width="35.25%"> <p style="padding:0;"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p><font face="Arial, Helvetica, sans-serif" size="2">meet financial obligations in accordance with
the documentation governing </font><font face="Arial, Helvetica, sans-serif" size="2">the relevant obligation. Short-term deposit ratings may be adjusted for loss </font><font face="Arial, Helvetica, sans-serif" size="2">severity. Short-Term Ratings
are assigned to obligations whose initial </font><font face="Arial, Helvetica, sans-serif" size="2">maturity is viewed as "short term" based on market convention. Typically, </font><font face="Arial, Helvetica, sans-serif" size="2">this means up to
13 months for corporate, sovereign, and structured </font><font face="Arial, Helvetica, sans-serif" size="2">obligations, and up to 36 months for obligations in U.S. public finance </font><font face="Arial, Helvetica, sans-serif" size="2">markets.
</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">F1: Highest short-term credit quality. Indicates the strongest intrinsic capacity for timely payment of financial commitments; may have an added "+" to denote any exceptionally strong
credit feature.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">F2: Good short-term credit quality. Good intrinsic capacity for timely payment of financial
commitments.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">F3: Fair short-term credit quality. The intrinsic capacity for timely payment of financial commitments is
adequate.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">B: Speculative short-term credit quality. Minimal capacity for timely payment of financial commitments, plus
heightened vulnerability to near term adverse changes in financial and economic conditions.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">C: High short-term default
risk. Default is a real possibility.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">RD: Restricted default. Indicates an entity that has defaulted on one or more of
its financial commitments, although it continues to meet other financial obligations. Typically applicable to entity ratings only.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">D: Default. Indicates a broad-based default event for an entity, or the default of a short-term obligation.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
<table width="100%">
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<td align="right" width="26.25%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"></FONT></p> </td>
<td align="right" width="48.25%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"></FONT></p> </td>
<td align="right" width="25.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">CEF0001_122117</FONT></p> </td> </tr> </table><hr style="size:3;color:#999999;width:100%;">
<DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p><a name="chapter_28_4636"></A><a name="chapter_28-sect1_1_4636"></A>
<table width="100%" style="padding-top:6;padding-bottom:6;border-top:1;border-bottom:1;border-left:1;border-right:1" height="60px">
<tr>
<td align="left" width="29.5%" colspan="3"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b>Prospectus</b></FONT></p> </td> </tr>
<tr>
<td align="left" width="29.5%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td>
<td align="left" width="35.25%"> <p style="padding:0"><FONT SIZE="4" face="Arial, Helvetica, sans-serif"><b></b></FONT></p> </td> </tr> </table> <p align="center"><font face="Arial, Helvetica, sans-serif" size="2">
<img src="g450385pr4636img002.jpg"></font></p> <p align="center"><font face="Arial, Helvetica, sans-serif" size="2"><b>Up to&#160;9,500,000 Shares</b></font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;" align="center"><font
face="Arial, Helvetica, sans-serif" size="3"><b>PIMCO Dynamic Income Fund</b></font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;" align="center"><font face="Arial, Helvetica, sans-serif" size="3"><b>_________________</b></font></p>
<p style="padding:0;margin-top:1em;margin-bottom:0em;" align="center"><font face="Arial, Helvetica, sans-serif" size="3"><b><b><b>PROSPECTUS</b></b></b></font></p>
<p align="center"><font face="Arial, Helvetica, sans-serif" size="2">______________</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p align="center"><font face="Arial, Helvetica, sans-serif" size="2">December 21,
2017</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"><b>&#160;</b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
<table width="100%">
<tr>
<td align="left" width="50%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><br>
<img src="g450385pr4636img005.jpg"><br></FONT></p> </td>
<td align="right" width="46.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">PIMCO Dynamic Income Fund | <b>PROSPECTUS</b></FONT></p> </td>
<td align="right" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">92</FONT></p> </td> </tr> </table><hr style="size:3;color:#999999;width:100%;">
<DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;
</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p><a name="chapter_28-sect1_2_4636"></A>
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<td valign="top" align="left" width="50%" colspan="2"> <p style="padding:0;margin-top:2;margin-bottom:0;"><font face="Arial, Helvetica, sans-serif" size="2"><br>
<img src="g450385pr4636img009.jpg"><br></font></p> </td>
<td valign="top" align="right" width="25%"> <p style="padding:0;margin-top:2;margin-bottom:0;"><font face="Arial, Helvetica, sans-serif" size="2"><br>
<img src="g450385pr4636img010.jpg"><br></font></p> </td> </tr></table> <p style="margin-top:5px;margin-bottom:0px;"><FONT SIZE="0.5" face="Arial, Helvetica, sans-serif">&#160;</FONT></p>
<table margin="0" cellspacing="0" cellpadding="6" border="0px" width="100%">
<tr>
<td valign="top" align="left" width="50%"> <p style="padding:0;margin-top:2;margin-bottom:0;"><font face="Arial, Helvetica, sans-serif" size="2"></font></p> </td>
<td valign="top" align="right" width="50%"> <p style="padding:0;margin-top:2;margin-bottom:0;"><font face="Arial, Helvetica, sans-serif" size="2">CEF0001_122117</font></p> </td> </tr></table>
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
<a name="chapter_1_4819"></A><a name="chapter_1-sect1_1_4819"></A><p align="center"><font face="Arial, Helvetica, sans-serif" size="2"><b>FORM OF PROSPECTUS SUPPLEMENT</b></font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p align="center"><font face="Arial, Helvetica, sans-serif" size="2">(To Prospectus dated December 21, 2017)</font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p align="center"><font face="Arial, Helvetica, sans-serif" size="2"><b>PIMCO Dynamic Income Fund<br> </b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p>
<p align="center"><font face="Arial, Helvetica, sans-serif" size="2"><b>Up to&#160;9,500,000 Common Shares<br> </b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p align="left"><font
face="Arial, Helvetica, sans-serif" size="2">PIMCO Dynamic Income Fund (the "Fund") has entered into a sales agreement (the "Sales Agreement") with JonesTrading Institutional Services LLC ("JonesTrading") relating to its common shares of beneficial
interest ("Common Shares") offered by this Prospectus Supplement and the accompanying Prospectus. In accordance with the terms of the Sales Agreement, the Fund may offer and sell up to 9,500,000 of its Common Shares, par value $0.00001 per share,
from time to time through JonesTrading as its agent for the offer and sales of the Common Shares. As of November 30, 2017, the Fund has sold in this offering an aggregate of 3,085,051 Common Shares, representing net proceeds to the Fund of
$91,223,052, after payment of commissions. Under the Investment Company Act of 1940, as amended (the "1940 Act"), the Fund may not sell any Common Shares at a price below the current net asset value of such common shares, exclusive of any
distributing commission or discount. The Fund seeks current income as a primary objective and capital appreciation as a secondary objective.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p align="left"><font
face="Arial, Helvetica, sans-serif" size="2">The Fund's outstanding Common Shares are listed on the New York Stock Exchange ("NYSE") under the symbol "PDI," as will be the Common Shares offered in this Prospectus Supplement and the accompanying
Prospectus, subject to notice of issuance. The last reported sale price for the Common Shares on November 30, 2017 was $30.46 per share. The net asset value of the Common Shares at the close of business on November 30, 2017 was $29.02 per
share.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p align="left"><font face="Arial, Helvetica, sans-serif" size="2">Sales of the Common Shares, if any, under this Prospectus Supplement and the accompanying
Prospectus may be made in negotiated transactions or transactions that are deemed to be "at the market" as defined in Rule 415 under the Securities Act of 1933, as amended (the "1933 Act"), including sales made directly on the NYSE or sales made to
or through a market maker other than on an exchange.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p align="left"><font face="Arial, Helvetica, sans-serif" size="2">JonesTrading will be entitled to compensation of up
to 1.00% of the gross proceeds with respect to sales of the Common Shares actually effected by JonesTrading under the Sales Agreement. In connection with the sale of the Common Shares on our behalf, JonesTrading may be deemed to be an "underwriter"
within the meaning of the 1933 Act and the compensation of JonesTrading may be deemed to be underwriting commissions or discounts.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p align="left"><font
face="Arial, Helvetica, sans-serif" size="2">JonesTrading is not required to sell any specific number or dollar amount of common shares, but will use its commercially reasonable efforts to sell the Common Shares offered by this Prospectus Supplement
and the accompanying Prospectus. There is no arrangement for Common Shares to be received in an escrow, trust or similar arrangement.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p align="left"><font
face="Arial, Helvetica, sans-serif" size="2"><b>You should review the information set forth under "Prospectus Supplement Summary - Risks" on page S-4 of this Prospectus Supplement and "Principal Risks of the Fund" on page 52 of the accompanying
Prospectus before investing in the Common Shares.</b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p align="left"><font face="Arial, Helvetica, sans-serif" size="2"><b>Neither the U.S. Securities and Exchange
Commission ("SEC") nor the U.S. Commodity Futures Trading Commission ("CFTC") have approved or disapproved of these securities or determined that this Prospectus is truthful or complete. Any representation to the contrary is a criminal
offense.</b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p align="left"><font face="Arial, Helvetica, sans-serif" size="2">
<img src="g450385pr4819img000.jpg"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p align="center"><font face="Arial, Helvetica, sans-serif" size="2">Prospectus Supplement dated December 21, 2017</font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p align="left"><font face="Arial, Helvetica, sans-serif" size="2">You should read this Prospectus Supplement and the accompanying Prospectus before deciding whether to invest in the Common
Shares and retain them for future reference. The Prospectus Supplement and the accompanying Prospectus contain important information about the Fund. Material that has been incorporated by reference and other information about us can be obtained from
us by calling toll free (844) 33-PIMCO (844-337-4626) or by writing to the Fund at c/o Pacific Investment Management Company LLC, 1633 Broadway, New York, New York 10019. You may also obtain a copy of the Statement of Additional Information (and
other information regarding the Fund) from the Securities and Exchange Commission's (the "SEC") Public Reference Room in Washington, D.C. by calling (202) 551-8090. The SEC charges a fee for copies. The Fund's Statement of Additional Information and
most recent annual and semiannual reports are available, free of charge, on the Fund's website (http://www.pimco.com). You can obtain the same information, free of charge, from the SEC's website (http://www.sec.gov).</font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
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<td align="right" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">December 21, 2017 | <b>SUPPLEMENT</b></FONT></p> </td>
<td align="right" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">S-1</FONT></p> </td> </tr> </table><hr style="size:3;color:#999999;width:100%;">
<DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;
</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p><a name="chapter_2_4819"></A><a name="chapter_2-sect1_1_4819"></A><p style="padding:0;margin-top:1em;margin-bottom:0em;" align="left">
<font face="Arial, Helvetica, sans-serif" size="3"><b>Table of Contents</b></font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;" align="left"><font face="Arial, Helvetica, sans-serif" size="3"><b>Prospectus Supplement<br>
</b></font></p> <p style="margin-top:5px;margin-bottom:0px;"><FONT SIZE="0.5" face="Arial, Helvetica, sans-serif">&#160;</FONT></p>
<table margin="0" cellspacing="0" cellpadding="0" border="0px" width="100%">
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<td valign="bottom" align="left" width="90.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> About this Prospectus Supplement </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">S-3</font></p> </td> </tr>
<tr style="background-color:#d6f7fa;">
<td valign="bottom" align="left" width="90.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Cautionary Notice Regarding Forward-Looking Statements </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> S-3 </font></p> </td> </tr>
<tr>
<td valign="bottom" align="left" width="90.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Prospectus Supplement Summary </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">S-3</font></p> </td> </tr>
<tr style="background-color:#d6f7fa;">
<td valign="bottom" align="left" width="90.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Summary of Fund Expenses </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">S-5</font></p> </td> </tr>
<tr>
<td valign="bottom" align="left" width="90.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Use of Proceeds </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">S-6</font></p> </td> </tr>
<tr style="background-color:#d6f7fa;">
<td valign="bottom" align="left" width="90.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Capitalization </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> S-6 </font></p> </td> </tr>
<tr>
<td valign="bottom" align="left" width="90.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Market and Net Asset Value Information </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> S-7 </font></p> </td> </tr>
<tr style="background-color:#d6f7fa;">
<td valign="bottom" align="left" width="90.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Plan of Distribution </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> S-7 </font></p> </td> </tr>
<tr>
<td valign="bottom" align="left" width="90.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Legal Matters </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> S-8 </font></p> </td> </tr>
<tr style="background-color:#d6f7fa;">
<td valign="bottom" align="left" width="90.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Additional Information </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> S-8 </font></p> </td>
</tr></table><a name="chapter_3_4819"></A><a name="chapter_3-sect1_1_4819"></A><p style="padding:0;margin-top:1em;margin-bottom:0em;" align="left"><font face="Arial, Helvetica, sans-serif" size="3"><b>Prospectus</b></font></p>
<p style="margin-top:5px;margin-bottom:0px;"><FONT SIZE="0.5" face="Arial, Helvetica, sans-serif">&#160;</FONT></p>
<table margin="0" cellspacing="0" cellpadding="0" border="0px" width="100%">
<tr>
<td valign="bottom" align="left" width="90.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Prospectus Summary </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">4</font></p> </td> </tr>
<tr style="background-color:#d6f7fa;">
<td valign="bottom" align="left" width="90.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Summary of Fund Expenses </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">27</font></p> </td> </tr>
<tr>
<td valign="bottom" align="left" width="90.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Financial Highlights </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 28 </font></p> </td> </tr>
<tr style="background-color:#d6f7fa;">
<td valign="bottom" align="left" width="90.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Use of Proceeds </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">30</font></p> </td> </tr>
<tr>
<td valign="bottom" align="left" width="90.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> The Fund </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 30 </font></p> </td> </tr>
<tr style="background-color:#d6f7fa;">
<td valign="bottom" align="left" width="90.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Investment Objectives and Policies </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 30 </font></p> </td> </tr>
<tr>
<td valign="bottom" align="left" width="90.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Portfolio Contents </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 31 </font></p> </td> </tr>
<tr style="background-color:#d6f7fa;">
<td valign="bottom" align="left" width="90.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Use of Leverage </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 50 </font></p> </td> </tr>
<tr>
<td valign="bottom" align="left" width="90.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Principal Risks of the Fund </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 52 </font></p> </td> </tr>
<tr style="background-color:#d6f7fa;">
<td valign="bottom" align="left" width="90.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> How the Fund Manages Risk </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 71 </font></p> </td> </tr>
<tr>
<td valign="bottom" align="left" width="90.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Management of the Fund </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 73 </font></p> </td> </tr>
<tr style="background-color:#d6f7fa;">
<td valign="bottom" align="left" width="90.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Net Asset Value </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 76 </font></p> </td> </tr>
<tr>
<td valign="bottom" align="left" width="90.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Distributions </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 77 </font></p> </td> </tr>
<tr style="background-color:#d6f7fa;">
<td valign="bottom" align="left" width="90.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Dividend Reinvestment Plan </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 78 </font></p> </td> </tr>
<tr>
<td valign="bottom" align="left" width="90.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Description of Capital Structure </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 79 </font></p> </td> </tr>
<tr style="background-color:#d6f7fa;">
<td valign="bottom" align="left" width="90.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Plan of Distribution </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 79 </font></p> </td> </tr>
<tr>
<td valign="bottom" align="left" width="90.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Market and Net Asset Value Information </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 80 </font></p> </td> </tr>
<tr style="background-color:#d6f7fa;">
<td valign="bottom" align="left" width="90.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Anti-Takeover Provisions in the Declaration of Trust </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 81 </font></p> </td> </tr>
<tr>
<td valign="bottom" align="left" width="90.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Repurchase of Common Shares; Conversion to Open-End Fund </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 81 </font></p> </td> </tr>
<tr style="background-color:#d6f7fa;">
<td valign="bottom" align="left" width="90.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Tax Matters </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 82 </font></p> </td> </tr>
<tr>
<td valign="bottom" align="left" width="90.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Custodian and Transfer Agent </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 84 </font></p> </td> </tr>
<tr style="background-color:#d6f7fa;">
<td valign="bottom" align="left" width="90.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Independent Registered Public Accounting Firm </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 84 </font></p> </td> </tr>
<tr>
<td valign="bottom" align="left" width="90.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Legal Matters </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 84 </font></p> </td> </tr>
<tr style="background-color:#d6f7fa;">
<td valign="bottom" align="left" width="90.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Table of Contents for the Statement of Additional Information </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 85 </font></p> </td> </tr>
<tr>
<td valign="bottom" align="left" width="90.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Appendix A&#8211;Description of Securities Ratings </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 86 </font></p> </td> </tr></table> <p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
<table width="100%">
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<td align="left" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">S-2 &#160;&#160;&#160;&#160; </FONT></p> </td>
<td align="left" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><b>SUPPLEMENT</b> | PIMCO Dynamic Income Fund &#160;&#160;&#160;&#160; </FONT></p> </td> </tr>
</table><hr style="size:3;color:#999999;width:100%;"> <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;
</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of
Contents</A></FONT></p><a name="chapter_4_4819"></A><a name="chapter_4-sect1_1_4819"></A><p style="padding:0;margin-top:1em;margin-bottom:0em;" align="left"><font face="Arial, Helvetica, sans-serif" size="3"><b>About this Prospectus Supplement<br>
</b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"><b>You should rely only on the information contained or incorporated by reference in this Prospectus Supplement and the accompanying Prospectus. The Fund has not, and JonesTrading
has not, authorized anyone to provide you with inconsistent information. If anyone provides you with inconsistent information, you should not assume that the Fund or JonesTrading has authorized or verified it. The Fund is not, and JonesTrading is
not, making an offer of these securities in any state where the offer is not permitted. You should not assume that the information contained in this Prospectus Supplement and the accompanying Prospectus is accurate as of any date other than the date
on the front hereof or thereof. The Fund's business, financial condition, results of operations and prospects may have changed since that date.</b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">This document has two parts. The first part is this Prospectus Supplement, which describes the terms of this offering of Common Shares and also adds to and updates information contained in the
accompanying Prospectus. The second part is the accompanying Prospectus, which gives more general information and disclosure. To the extent the information contained in this Prospectus Supplement differs from or is additional to the information
contained in the accompanying Prospectus, you should rely only on the information contained in this Prospectus Supplement. You should read this Prospectus Supplement and the accompanying Prospectus before investing in the Common Shares.</font></p>
<p style="padding:0;margin-top:1em;margin-bottom:0em;" align="left"><font face="Arial, Helvetica, sans-serif" size="3"><b>Cautionary Notice Regarding Forward-Looking Statements<br> </b></font></p> <p align="left"><font
face="Arial, Helvetica, sans-serif" size="2">This Prospectus Supplement, the accompanying Prospectus and the Fund's Statement of Additional Information, including documents incorporated by reference, contain "forward-looking statements."
Forward-looking statements can be identified by the words "may," "will," "intend," "expect," "estimate," "continue," "plan," "anticipate," and similar terms and the negative of such terms. By their nature, all forward-looking statements involve
risks and uncertainties, and actual results could differ materially from those contemplated by the forward-looking statements. Several factors that could materially affect the Fund's actual results are the performance of the portfolio of securities
held by the Fund, the conditions in the U.S. and international financial and other markets, the price at which the Fund's Common Shares will trade in the public markets and other factors discussed in the Fund's periodic filings with the
SEC.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p align="left"><font face="Arial, Helvetica, sans-serif" size="2">Although the Fund believes that the expectations expressed in our forward-looking statements are
reasonable, actual results could differ materially from those expressed or implied in our forward-looking statements. The Fund's future financial condition and results of operations, as well as any forward-looking statements, are subject to change
and are subject to inherent risks and uncertainties, such as those disclosed in the "Principal Risks of the Fund" section of the accompanying Prospectus. You are cautioned not to place undue reliance on these forward-looking statements. All
forward-looking statements contained or incorporated by reference in this Prospectus Supplement or the accompanying Prospectus are made as of the date of this Prospectus Supplement or the accompanying Prospectus, as the case may be. Except for the
Fund's ongoing obligations under the federal securities laws, the Fund does not intend, and the Fund undertakes no obligation, to update any forward-looking statement. The forward-looking statements contained in this Prospectus Supplement, the
accompanying Prospectus and the Fund's Statement of Additional Information are excluded from the safe harbor protection provided by section 27A of the 1933 Act.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p>
<p align="left"><font face="Arial, Helvetica, sans-serif" size="2">Currently known risk factors that could cause actual results to differ materially from the Fund's expectations include, but are not limited to, the factors described in the
"Principal Risks of the Fund" section of the accompanying Prospectus. The Fund urges you to review carefully those sections for a more detailed discussion of the risks of an investment in our securities.</font></p><a name="chapter_5_4819"></A><a name="chapter_5-sect1_1_4819">
</A><p style="padding:0;margin-top:1em;margin-bottom:0em;" align="left"><font face="Arial, Helvetica, sans-serif" size="3"><b>Prospectus Supplement Summary<br> </b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">This is only a
summary. This summary may not contain all of the information that you should consider before investing in the Fund's common shares of beneficial interest (the "Common Shares"). You should review the more detailed information contained in this
Prospectus Supplement and in the accompanying Prospectus and in the Statement of Additional Information, especially the information set forth under the heading "Principal Risks of the Fund" beginning on page 52 of the accompanying
Prospectus.</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b>The Fund<br> </b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">PIMCO Dynamic Income Fund (the
"Fund") is a diversified, closed-end management investment company that commenced operations on May 30, 2012, following the initial public offering of its Common Shares.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2">The Common Shares are listed on the New York Stock Exchange ("NYSE") under the symbol "PDI." As of November 30, 2017, the net assets of the Fund attributable to Common Shares were $1,450,051,981
and the Fund had outstanding 49,964,011 Common Shares. The last reported sale price of the Common Shares, as reported by the NYSE on November 30, 2017, was $30.46 per Common Share. The net asset value of the Common Shares at the close of business on
November 30, 2017, was $29.02 per Common Share. See "Description of Capital Structure" in the accompanying Prospectus.</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b>Investment
Objectives<br> </b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund seeks current income as a primary objective and capital appreciation as a secondary objective.</font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
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<td align="right" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">December 21, 2017 | <b>SUPPLEMENT</b></FONT></p> </td>
<td align="right" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">S-3</FONT></p> </td> </tr> </table><hr style="size:3;color:#999999;width:100%;">
<DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p>
<p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b>Investment Strategy<br> </b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund seeks to achieve its investment
objectives by utilizing a dynamic asset allocation strategy among multiple fixed income sectors in the global credit markets, including corporate debt (including, among other things, fixed-, variable- and floating-rate bonds, bank loans, convertible
securities and stressed debt securities issued by U.S. or foreign (non-U.S.) corporations or other business entities, including emerging market issuers), mortgage-related and other asset-backed securities, government and sovereign debt, taxable
municipal bonds and other fixed-, variable- and floating-rate income-producing securities of U.S. and foreign issuers, including emerging market issuers. The Fund may invest in investment grade debt securities and below investment grade debt
securities (commonly referred to as "high yield" securities or "junk bonds"), including securities of stressed issuers. The types of securities and instruments in which the Fund may invest are summarized under "Portfolio Contents" in the
accompanying Prospectus.</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b>Risks<br> </b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Investment in the Fund's
Common Shares involves substantial risks arising from, among other strategies, the Fund's ability to invest in debt instruments that are, at the time of purchase, rated below investment grade (below Baa3 by Moody's Investors Service, Inc.
("Moody's") or below BBB- by either S&#38;P Global Ratings, a division of The McGraw-Hill Company, Inc. ("S&#38;P") or Fitch, Inc. ("Fitch")) or unrated but determined by PIMCO to be of comparable quality, the Fund's exposure to foreign and emerging
markets securities and currencies and to mortgage-related and other asset-backed securities, and the Fund's use of leverage. Debt securities of below investment grade quality are regarded as having predominantly speculative characteristics with
respect to capacity to pay interest and to repay principal, and are commonly referred to as "high yield" securities or "junk bonds." The Fund's exposure to foreign securities and currencies, and particularly to emerging markets securities and
currencies, involves special risks, including foreign currency risk and the risk that the securities may decline in response to unfavorable political and legal developments, unreliable or untimely information or economic and financial instability.
Mortgage-related and other asset-backed securities are subject to extension and prepayment risk and often have complicated structures that make them difficult to value. Because of the risks associated with investing in high yield securities, foreign
and emerging market securities (and related exposure to foreign currencies) and mortgage-related and other asset-backed securities, and using leverage, an investment in the Fund should be considered speculative. Before investing in the Common
Shares, you should read the discussion of the principal risks of investing in the Fund in "Principal Risks of the Fund" in the accompanying Prospectus. Certain of these risks are summarized in "Prospectus Summary&#8212;Principal Risks of the Fund"
in the accompanying Prospectus. The Fund cannot assure you that it will achieve its investment objectives, and you could lose all of your investment in the Fund.</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font
face="Arial, Helvetica, sans-serif" size="3"><b>Investment Manager<br> </b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Pacific Investment Management Company LLC ("PIMCO" or the "Investment Manager") serves as the investment
manager of the Fund. Subject to the supervision of the Board of Trustees of the Fund (the "Board") PIMCO is responsible for managing the investment activities of the Fund and the Fund's business affairs and other administrative matters. The
Investment Manager receives an annual fee from the Fund, payable monthly, in an amount equal to 1.15% of the Fund's average daily total managed assets. Total managed assets includes total assets of the Fund (including any assets attributable to any
reverse repurchase agreements, dollar rolls, borrowings and preferred shares that may be outstanding) minus accrued liabilities (other than liabilities representing reverse repurchase agreements, dollar rolls and borrowings). For purposes of
calculating total managed assets, the Fund's derivative investments will be valued based on their market value.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">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 registered investment companies. PIMCO
is a majority-owned indirect subsidiary of Allianz SE, a publicly traded European insurance and financial services company. As of September 30, 2017, PIMCO had approximately $1.68 trillion in assets under management.</font></p>
<p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b>The Offering<br> </b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund and the Investment Manager have entered into
the Sales Agreement with JonesTrading relating to the Common Shares offered by this Prospectus Supplement and the accompanying Prospectus. In accordance with the terms of the Sales Agreement, the Fund may offer and sell up to 9,500,000 Common
Shares, par value $0.00001, through JonesTrading as its agent for the offer and sale of the Common Shares.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">As of
November 30, 2017, the Fund has sold in this offering an aggregate of 3,085,051 Common Shares, representing net proceeds to the Fund of $91,223,052 after payment of commissions.</font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund's outstanding Common Shares are listed on the NYSE under the symbol "PDI," as will be the Common Shares offered in this
Prospectus Supplement and the accompanying Prospectus, subject to notice of issuance. The last reported sale price for the Common Shares on November 30, 2017 was $30.46 per share.</font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Sales of the Common Shares, if any, under this Prospectus Supplement and the accompanying Prospectus may be made in negotiated
transactions or </font><font face="Arial, Helvetica, sans-serif" size="2">transactions that are deemed to be "at the market" as defined in Rule 415 under the 1933 Act, including sales made directly on the NYSE or sales made to </font><font
face="Arial, Helvetica, sans-serif" size="2">or through a market maker other than on an exchange. See "Plan of Distribution" in this Prospectus Supplement. The Common Shares may not be sold
</font><font face="Arial, Helvetica, sans-serif" size="2">through agents, underwriters or dealers without delivery or deemed delivery of a prospectus and a prospectus supplement describing the method and terms </font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
<table width="100%">
<tr>
<td align="left" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">S-4 &#160;&#160;&#160;&#160; </FONT></p> </td>
<td align="left" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><b>SUPPLEMENT</b> | PIMCO Dynamic Income Fund &#160;&#160;&#160;&#160; </FONT></p> </td> </tr>
</table><hr style="size:3;color:#999999;width:100%;"> <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;
</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p> <p><font face="Arial, Helvetica, sans-serif" size="2">of the offering of the Fund's securities. Under the 1940 Act,
the Fund may not sell any Common Shares at a price below the current net asset value of such </font><font face="Arial, Helvetica, sans-serif" size="2">Common Shares, exclusive of any distributing commission or discount. </font></p>
<p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b>Use of Proceeds</b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The net proceeds of this offering will be invested in
accordance with the Fund's investment objectives and policies as set forth in the accompanying Prospectus. It is currently anticipated that the Fund will be able to invest substantially all of the net proceeds of this offering in accordance with its
investment objectives and policies within approximately 30 days of receipt by the Fund, depending on the amount and timing of proceeds available to the Fund as well as the availability of investments consistent with the Fund's investment objectives
and policies, and except to the extent proceeds are held in cash to pay dividends or expenses or for temporary defensive purposes. See "Use of Proceeds" in this Prospectus Supplement.</font></p><a name="chapter_6_4819"></A><a name="chapter_6-sect1_1_4819">
</A><p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b>Summary of Fund Expenses<br> </b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The following table is intended to
assist investors in understanding the fees and expenses (annualized) that an investor in Common Shares of the Fund would bear, directly or indirectly, as a result of an offering. The table reflects the use of leverage in the form of reverse
repurchase agreements in an amount equal to 45.31% of the Fund's total managed assets (including assets attributable to reverse repurchase agreements), which reflects approximately the percentage of the Fund's total managed assets attributable to
such leverage as of June 30, 2017, and shows Fund expenses as a percentage of net assets attributable to Common Shares. The percentage above does not reflect the Fund's use of other forms of economic leverage, such as credit default swaps or other
derivative instruments. The table and example below are based on the Fund's capital structure as of June 30, 2017. The extent of the Fund's assets attributable to leverage following an offering, and the Fund's associated expenses, are likely to vary
(perhaps significantly) from these assumptions.</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Shareholder Transaction Expenses<br> </b></b></font></p>
<p style="margin-top:5px;margin-bottom:0px;"><FONT SIZE="0.5" face="Arial, Helvetica, sans-serif">&#160;</FONT></p>
<table margin="0" cellspacing="0" cellpadding="0" border="0px" width="100%">
<tr>
<td valign="bottom" align="left" width="90.04%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">Sales load (as a percentage of offering price)</font></p> </td>
<td valign="bottom" align="center" width="9.96%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">1.00%<sup>(1)</sup></font></p> </td> </tr>
<tr style="background-color:#d6f7fa;">
<td valign="bottom" align="left" width="90.04%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">Estimated Offering Expenses Borne by Common Shareholders (as a percentage of offering price)</font></p> </td>
<td valign="bottom" align="center" width="9.96%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 0.21% </font></p> </td> </tr>
<tr>
<td valign="bottom" align="left" width="90.04%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">Dividend Reinvestment Plan Fees</font></p> </td>
<td valign="bottom" align="center" width="9.96%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">None<sup>(2)</sup></font></p> </td> </tr></table> <p style="padding:1px;margin:0px;">&#160;</p>
<p style="valign:top;align:left;padding-top:3px;padding-right:5px;padding-left:12px ;text-indent:-12px;margin:0px;"><font face="Arial, Helvetica, sans-serif" size="1">1</font><FONT SIZE="2" face="Arial, Helvetica, sans-serif">&#160;</FONT><font
face="Arial, Helvetica, sans-serif" size="1">Represents the maximum commission with respect to the Common Shares being sold in this offering that the Fund may pay to JonesTrading in connection with sales of Common Shares effected by JonesTrading in
this offering. This is the only sales load to be paid in connection with this offering. There is no guarantee that there will be any sales of Common Shares pursuant to this Prospectus Supplement and the accompanying Prospectus. Actual sales of
Common Shares under this Prospectus Supplement and the accompanying Prospectus, if any, may be less than as set forth in this table. In addition, the price per share of any such sale may be greater or less than the price set forth in this table,
depending on the market price of the Common Shares at the time of any such sale.</font></p> <p style="valign:top;align:left;padding-top:3px;padding-right:5px;padding-left:12px ;text-indent:-12px;margin:0px;"><font
face="Arial, Helvetica, sans-serif" size="1">2</font><FONT SIZE="2" face="Arial, Helvetica, sans-serif">&#160;</FONT><font face="Arial, Helvetica, sans-serif" size="1">You will pay brokerage charges if you direct your broker or the plan agent to
sell your Common Shares that you acquired pursuant to a dividend reinvestment plan. You may also pay a pro rata share of brokerage commissions incurred in connection with open-market purchases pursuant to the Fund's Dividend Reinvestment Plan. See
"Dividend Reinvestment Plan" in the accompanying Prospectus.</font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b><b>Annual Expenses</b></b></font></p>
<p style="margin-top:5px;margin-bottom:0px;"><FONT SIZE="0.5" face="Arial, Helvetica, sans-serif">&#160;</FONT></p>
<table margin="0" cellspacing="0" cellpadding="0" border="0px" width="100%">
<tr>
<td valign="bottom" align="left" width="80%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="center" width="20%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b>Percentage of Net Assets Attributable to Common Shares (reflecting leverage attributable to reverse repurchase
agreements)</b></font></p> </td> </tr>
<tr style="background-color:#d6f7fa;">
<td valign="bottom" align="left" width="80%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">Management Fees<sup>(1)</sup></font></p> </td>
<td valign="bottom" align="center" width="20%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 2.12% </font></p> </td> </tr>
<tr>
<td valign="bottom" align="left" width="80%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">Interest Payments on Borrowed Funds<sup>(2)</sup></font></p> </td>
<td valign="bottom" align="center" width="20%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 1.94% </font></p> </td> </tr>
<tr style="background-color:#d6f7fa;">
<td valign="bottom" align="left" width="80%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1">Other Expenses<sup>(3)</sup></font></p> </td>
<td valign="bottom" align="center" width="20%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 0.02% </font></p> </td> </tr>
<tr>
<td valign="bottom" align="left" width="80%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Total Annual Expenses </font></p> </td>
<td valign="bottom" align="center" width="20%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 4.08% </font></p> </td> </tr></table> <p style="padding:1px;margin:0px;">&#160;</p>
<p style="valign:top;align:left;padding-top:3px;padding-right:5px;padding-left:12px ;text-indent:-12px;margin:0px;"><font face="Arial, Helvetica, sans-serif" size="1">1</font><FONT SIZE="2" face="Arial, Helvetica, sans-serif">&#160;</FONT><font
face="Arial, Helvetica, sans-serif" size="1">Management Fees include fees payable to the Investment Manager for advisory services and for supervisory, administrative and other services. The Fund pays for the advisory, supervisory and administrative
services it requires under what is essentially an all-in fee structure (the "unified management fee"). Pursuant to an investment management agreement, PIMCO is paid a Management Fee of 1.15% of the Fund's average daily total managed assets. The Fund
(and not PIMCO) will be responsible for certain fees and expenses, which are reflected in the table above, that are not covered by the unified management fee under the investment management agreement. Please see "Management of the Fund
&#8211;Investment Manager" in the accompanying Prospectus for an explanation of the unified management fee and definition of "total managed assets."</font></p>
<p style="valign:top;align:left;padding-top:3px;padding-right:5px;padding-left:12px ;text-indent:-12px;margin:0px;"><font face="Arial, Helvetica, sans-serif" size="1">2</font><FONT SIZE="2" face="Arial, Helvetica, sans-serif">&#160;</FONT><font
face="Arial, Helvetica, sans-serif" size="1">Reflects the Fund's use of leverage in the form of reverse repurchase agreements as of June 30, 2017, which represented 45.31% of the Fund's total managed assets (including assets attributable to reverse
repurchase agreements) as of that date, at an estimated annual interest rate cost to the Fund of 2.266%, which is based on current market conditions. See "Use of Leverage&#8212;Effects of Leverage" in the accompanying Prospectus. The actual amount
of interest expense borne by the Fund will vary over time in accordance with the level of the Fund's use of reverse repurchase agreements, dollar rolls and/or borrowings and variations in market interest rates. Borrowing expense is required to be
treated as an expense of the Fund for accounting purposes. Any associated income or gains (or losses) realized from leverage obtained through such instruments is not reflected in the Annual Expenses table above, but would be reflected in the Fund's
performance results.</font></p> <p style="valign:top;align:left;padding-top:3px;padding-right:5px;padding-left:12px ;text-indent:-12px;margin:0px;"><font face="Arial, Helvetica, sans-serif" size="1">3</font><FONT
SIZE="2" face="Arial, Helvetica, sans-serif">&#160;</FONT><font face="Arial, Helvetica, sans-serif" size="1">Other expenses are estimated for the Fund's current fiscal year ending June 30, 2018.</font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
<table width="100%">
<tr>
<td align="right" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">December 21, 2017 | <b>SUPPLEMENT</b></FONT></p> </td>
<td align="right" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">S-5</FONT></p> </td> </tr> </table><hr style="size:3;color:#999999;width:100%;">
<DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p>
<p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b>Example</b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The following example illustrates the expenses that you would
pay on a $1,000 investment in Common Shares of the Fund (including an assumed total sales load or commission of 1.00%) and the other estimated costs of this offering to be borne by the Common Shareholders of 0.21%), assuming (1) that the Fund's net
assets do not increase or decrease, (2) that the Fund incurs total annual expenses of 4.08% of net assets attributable to Common Shares in years 1 through 10 (assuming assets attributable to reverse repurchase agreements representing 45.31% of the
Fund's total managed assets) and (3) a 5% annual return<sup>(1)</sup>:</font></p>
<table margin="0" cellspacing="0" cellpadding="0" border="0px" width="100%">
<tr>
<td valign="bottom" align="left" width="46%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="center" width="13.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b> 1 Year </b></font></p> </td>
<td valign="bottom" align="center" width="13.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b> 3 Years </b></font></p> </td>
<td valign="bottom" align="center" width="13.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b> 5 Years </b></font></p> </td>
<td valign="bottom" align="center" width="13.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b> 10 Years </b></font></p> </td> </tr>
<tr style="background-color:#d6f7fa;">
<td valign="bottom" align="left" width="46%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Total Expenses Incurred </font></p> </td>
<td valign="bottom" align="center" width="13.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $43 </font></p> </td>
<td valign="bottom" align="center" width="13.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $130 </font></p> </td>
<td valign="bottom" align="center" width="13.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $218 </font></p> </td>
<td valign="bottom" align="center" width="13.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $445 </font></p> </td> </tr></table>
<p style="valign:top;align:left;padding-top:3px;padding-right:5px;padding-left:12px ;text-indent:-12px;margin:0px;"><font face="Arial, Helvetica, sans-serif" size="1">1</font><FONT SIZE="2" face="Arial, Helvetica, sans-serif">&#160;</FONT><font
face="Arial, Helvetica, sans-serif" size="1"><b>The example above should not be considered a representation of future expenses. Actual expenses may be higher or lower than those shown.</b> The example assumes that the estimated Interest Payments on
Borrowed Funds and Other Expenses set forth in the Annual Expenses table are accurate, that the rate listed under Total Annual Expenses remains the same each year and that all dividends and distributions are reinvested at net asset value. Actual
expenses may be greater or less than those assumed. Moreover, the Fund's actual rate of return may be greater or less than the hypothetical 5% annual return shown in the example.</font></p><a name="chapter_7_4819"></A><a name="chapter_7-sect1_1_4819">
</A><p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b>Use of Proceeds<br> </b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Sales of the Common Shares, if any, under this
Prospectus Supplement and the accompanying Prospectus may be made in negotiated transactions or transactions that are deemed to be "at the market" as defined in Rule 415 under the 1933 Act, including sales made directly on the NYSE or sales made to
or through a market maker other than on an exchange. There is no guarantee that there will be any sales of the Common Shares pursuant to this Prospectus Supplement and the accompanying Prospectus. Actual sales, if any, of the Common Shares under
this Prospectus Supplement and the accompanying Prospectus may be less than as set forth in this paragraph. In addition, the price per share of any such sale may be greater or less than the price set forth in this paragraph, depending on the market
price of the Common Shares at the time of any such sale. As a result, the actual net proceeds the Fund receives may be more or less than the amount of net proceeds estimated in this Prospectus Supplement. Assuming the sale of the 6,414,949 Common
Shares remaining under the Sales Agreement as of November 30, 2017, at an assumed sale price of $28.75 per share, the Fund estimates that the net proceeds of&#160;the sale of the remaining Common Shares will be $182,323,350 after deducting an
estimated sales load of 1.00% and the estimated offering expenses attributable to such Common Shares payable by the Fund, and the total net proceeds of this offering will be approximately $273,546,402 after deducting an estimated sales load of 1.00%
and the estimated offering expenses payable by the Fund.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The net proceeds of this offering will be invested in
accordance with the Fund's investment objectives and policies as set forth in the accompanying Prospectus. It is currently anticipated that the Fund will be able to invest substantially all of the net proceeds in accordance with its investment
objectives and policies within approximately 30 days of receipt by the Fund, depending on the amount and timing of proceeds available to the Fund as well as the availability of investments consistent with the Fund's investment objectives and
policies, and except to the extent proceeds are held in cash to pay dividends or expenses or for temporary defensive purposes. Pending such investment, it is anticipated that the proceeds of this offering will be invested in high grade, short-term
securities, credit-linked trust certificates, and/or high yield securities, index futures contracts or similar derivative instruments designed to give the Fund exposure to the securities and markets in which it intends to invest while PIMCO selects
specific investments.</font></p><a name="chapter_8_4819"></A><a name="chapter_8-sect1_1_4819"></A><p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b>Capitalization<br> </b></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">Pursuant to the Sales Agreement, the Fund may offer and sell up to 9,500,000 Common Shares, par value $0.00001 per share, from time to time through JonesTrading as its agent for the offer and sale of the
Common Shares under this Prospectus Supplement and the accompanying Prospectus. There is no guarantee that there will be any sales of the Common Shares pursuant to this Prospectus Supplement and the accompanying Prospectus. The table below assumes
that the Fund will sell 6,414,949 Common Shares remaining under the Sales Agreement as of November 30, 2017 at an assumed price of $28.75 per share. Actual sales, if any, of the Common Shares, and the actual application of the proceeds thereof,
under this Prospectus Supplement and the accompanying Prospectus may be different than as set forth in the table below. In addition, the price per share of any such sale may be greater or less than $28.75, depending on the market price of the Common
Shares at the time of any such sale. To the extent that the market price per share of the Common Shares on any given day is less than the net asset value per share on such day, the Fund will instruct JonesTrading not to make any sales on such
day.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The following table sets forth the Fund's capitalization at June 30, 2017:</font></p>
<p style="padding:0;margin:0;"> <div face="Arial, Helvetica, sans-serif" size="2" style="padding-left:8;position: absolute; height:1em; text-align:left; margin:0;valing:top;">&#9632;</div> <p style="padding-left:24;margin:0;"><font
face="Arial, Helvetica, sans-serif" size="2">on a historical basis, and</font></p> <p></p> <p style="padding:0;margin:0;">
<div face="Arial, Helvetica, sans-serif" size="2" style="padding-left:8;position: absolute; height:1em; text-align:left; margin:0;valing:top;">&#9632;</div> <p style="padding-left:24;margin:0;"><font face="Arial, Helvetica, sans-serif" size="2">and
on a pro forma basis as adjusted to reflect (i) the assumed sale of&#160;the 6,414,949 Common Shares remaining under the Sales Agreement at $28.75 per share, in an offering under this Prospectus Supplement and the accompanying
Prospectus<sup>(1)</sup>, and (ii) the investment of net proceeds assumed from such offering in accordance with the Fund's investment objectives and policies, after deducting the assumed commission of $1,844,298 (representing an estimated commission
paid to JonesTrading of 1.00% of the gross proceeds in connection with sales of Common Shares effected by JonesTrading in this offering) and estimated offering expenses payable by the Fund of $262,136.</font></p> <p></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"><sup>(1) Under the Fund's current shelf registration statement, the Fund may not issue Common Shares in an aggregate amount greater than
$275,685,250. The Fund will not sell any Common Shares beyond such limit unless and until a subsequent registration statement or an amendment to the current shlef registration statement relating to such Common Shares is declared
effective.</sup></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
<table width="100%">
<tr>
<td align="left" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">S-6 &#160;&#160;&#160;&#160; </FONT></p> </td>
<td align="left" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><b>SUPPLEMENT</b> | PIMCO Dynamic Income Fund &#160;&#160;&#160;&#160; </FONT></p> </td> </tr>
</table><hr style="size:3;color:#999999;width:100%;"> <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;
</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p> <p style="margin-top:5px;margin-bottom:0px;"><FONT SIZE="0.5" face="Arial, Helvetica, sans-serif">&#160;</FONT></p>
<table margin="0" cellspacing="0" cellpadding="0" border="0px" width="100%">
<tr>
<td valign="bottom" align="left" width="62%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="center" width="19%" colspan="2"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b> As of June 30, 2017 </b></font></p> </td> </tr>
<tr>
<td valign="bottom" align="left" width="62%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="center" width="19%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b> Actual </b></font></p> </td>
<td valign="bottom" align="center" width="19%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b>As Adjusted&#8204;<sup>(1)</sup></b></font></p> </td> </tr>
<tr>
<td valign="bottom" align="left" width="62%" colspan="3"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b>Composition of Net Assets:</b></font></p> </td> </tr>
<tr style="background-color:#d6f7fa;">
<td valign="bottom" align="left" width="62%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Common Shares: </font></p> </td>
<td valign="bottom" align="center" width="19%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td>
<td valign="bottom" align="center" width="19%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"></font></p> </td> </tr>
<tr>
<td valign="bottom" align="left" width="62%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> <p style="padding-left:24;margin:0;"><font face="Arial, Helvetica, sans-serif" size="2">Common Shares, par value
$0.00001 per share, unlimited shares authorized (49,964,011 shares outstanding as of November 30, 2017, and 56,378,960<sup>(1)</sup> shares estimated issued and outstanding as adjusted)</font></p></font><p></p> </td>
<td valign="bottom" align="center" width="19%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $500 </font></p> </td>
<td valign="bottom" align="center" width="19%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $564 </font></p> </td> </tr>
<tr style="background-color:#d6f7fa;">
<td valign="bottom" align="left" width="62%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> <p style="padding-left:24;margin:0;"><font face="Arial, Helvetica, sans-serif" size="2">Paid-in-capital in excess
of par</font></p> </font><p></p> </td>
<td valign="bottom" align="center" width="19%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $1,170,856,000 </font></p> </td>
<td valign="bottom" align="center" width="19%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $1,353,179,286 </font></p> </td> </tr>
<tr>
<td valign="bottom" align="left" width="62%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> (Overdistributed) net investment income </font></p> </td>
<td valign="bottom" align="center" width="19%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $(5,329,000) </font></p> </td>
<td valign="bottom" align="center" width="19%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $(5,329,000) </font></p> </td> </tr>
<tr style="background-color:#d6f7fa;">
<td valign="bottom" align="left" width="62%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Accumulated net realized gain </font></p> </td>
<td valign="bottom" align="center" width="19%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $(20,044,000) </font></p> </td>
<td valign="bottom" align="center" width="19%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $(20,044,000) </font></p> </td> </tr>
<tr>
<td valign="bottom" align="left" width="62%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Net unrealized appreciation of investments </font></p> </td>
<td valign="bottom" align="center" width="19%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $227,191,000 </font></p> </td>
<td valign="bottom" align="center" width="19%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $227,191,000 </font></p> </td> </tr>
<tr style="background-color:#d6f7fa;">
<td valign="bottom" align="left" width="62%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b>Net Assets Applicable to Common Shareholders</b></font></p> </td>
<td valign="bottom" align="center" width="19%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $1,372,674,500 </font></p> </td>
<td valign="bottom" align="center" width="19%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $1,554,997,850 </font></p> </td> </tr>
<tr>
<td valign="bottom" align="left" width="62%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b>Capitalization</b></font></p> </td>
<td valign="bottom" align="center" width="19%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $1,372,674,500 </font></p> </td>
<td valign="bottom" align="center" width="19%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $1,554,997,850 </font></p> </td> </tr></table> <p style="padding:1px;margin:0px;">&#160;</p>
<p style="valign:top;align:left;padding-top:3px;padding-right:5px;padding-left:12px ;text-indent:-12px;margin:0px;"><font face="Arial, Helvetica, sans-serif" size="1">1</font><FONT SIZE="2" face="Arial, Helvetica, sans-serif">&#160;</FONT><font
face="Arial, Helvetica, sans-serif" size="1">Under the Fund's current shelf registration statement, the Fund may not issue Common Shares in an aggregate amount greater than $275,685,250. The Fund will not sell any Common Shares beyond such limit
unless and until a subsequent registration statement or an amendment to the current shelf registration statement relating to such Common Shares is declared
effective.</font></p><a name="chapter_9_4819"></A><a name="chapter_9-sect1_1_4819"></A><p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b>Market and Net Asset Value Information<br>
</b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The following table sets forth, for each of the periods indicated, the high and low closing market prices of the Fund's Common Shares on the NYSE, the high and low Net Asset Value
("NAV") per Common Share and the high and low premium/discount to NAV per Common Share. See "Net Asset Value" in the accompanying Prospectus for information as to how the Fund's NAV is determined.</font></p>
<table margin="0" cellspacing="0" cellpadding="0" border="0px" width="100%">
<tr>
<td valign="bottom" align="left" width="43%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b></b></font></p> </td>
<td valign="bottom" align="center" width="9.5%" colspan="2"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b>Common share<br> market price<sup>(1)</sup></b></font></p> </td>
<td valign="bottom" align="center" width="9.5%" colspan="2"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b>Common share<br> net asset value</b></font></p> </td>
<td valign="bottom" align="center" width="9.5%" colspan="2"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b>Premium (discount) as<br> a % of net asset value</b></font></p> </td> </tr>
<tr>
<td valign="bottom" align="left" width="43%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b> Quarter </b></font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b> High </b></font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b> Low </b></font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b> High </b></font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b> Low </b></font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b> High </b></font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"><b> Low </b></font></p> </td> </tr>
<tr>
<td valign="bottom" align="left" width="43%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Quarter ended September 30, 2017 </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $31.03 </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $28.98 </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $29.03 </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $28.19 </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 8.53% </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 2.22% </font></p> </td> </tr>
<tr style="background-color:#d6f7fa;">
<td valign="bottom" align="left" width="43%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Quarter ended June 30, 2017 </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $30.18 </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $28.83 </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $28.32 </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $26.73 </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 9.41% </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 5.84% </font></p> </td> </tr>
<tr>
<td valign="bottom" align="left" width="43%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Quarter ended March 31, 2017 </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $29.07 </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $27.68 </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $26.83 </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $25.79 </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 10.64% </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 4.61% </font></p> </td> </tr>
<tr style="background-color:#d6f7fa;">
<td valign="bottom" align="left" width="43%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Quarter ended December 31, 2016 </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $29.18 </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $26.18 </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $27.57 </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $25.83 </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 8.09% </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> (3.96)% </font></p> </td> </tr>
<tr>
<td valign="bottom" align="left" width="43%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Quarter ended September 30, 2016 </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $29.05 </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $27.32 </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $27.49 </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $26.40 </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 7.10% </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 1.66% </font></p> </td> </tr>
<tr style="background-color:#d6f7fa;">
<td valign="bottom" align="left" width="43%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Quarter ended June 30, 2016 </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $27.74 </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $25.99 </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $26.70 </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $25.99 </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 4.47% </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> (0.76)% </font></p> </td> </tr>
<tr>
<td valign="bottom" align="left" width="43%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Quarter ended March 31, 2016 </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $27.74 </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $24.90 </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $27.21 </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $25.94 </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 2.72% </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> (4.54)% </font></p> </td> </tr>
<tr style="background-color:#d6f7fa;">
<td valign="bottom" align="left" width="43%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Quarter ended December 31, 2015 </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $29.83 </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $27.25 </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $30.39 </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $27.16 </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 1.88% </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> (4.73)% </font></p> </td> </tr>
<tr>
<td valign="bottom" align="left" width="43%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Quarter ended September 30, 2015 </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $29.39 </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $26.99 </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $31.46 </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $30.22 </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> (4.34)% </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> (11.57)% </font></p> </td> </tr>
<tr style="background-color:#d6f7fa;">
<td valign="bottom" align="left" width="43%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Quarter ended June 30, 2015 </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $30.16 </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $28.98 </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $31.52 </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $30.74 </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> (3.66)% </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> (7.71)% </font></p> </td> </tr>
<tr>
<td valign="bottom" align="left" width="43%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> Quarter ended March 31, 2015 </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $30.65 </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $28.83 </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $30.95 </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> $30.34 </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> 0.03% </font></p> </td>
<td valign="bottom" align="center" width="9.5%"> <p style="padding:0;valign:bottom;"><font face="Arial, Helvetica, sans-serif" size="1"> (6.34)% </font></p> </td> </tr></table> <p style="padding:1px;margin:0px;">&#160;</p>
<p style="valign:top;align:left;padding-top:3px;padding-right:5px;padding-left:12px ;text-indent:-12px;margin:0px;"><font face="Arial, Helvetica, sans-serif" size="1">1</font><FONT SIZE="2" face="Arial, Helvetica, sans-serif">&#160;</FONT><font
face="Arial, Helvetica, sans-serif" size="1">Such prices reflect inter-dealer prices, without retail mark-up, mark-down or commission and may not represent actual transactions.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The
Fund's NAV per Common share at the close of business on November 30, 2017 was $29.02 and the last reported sale price of a Common Share on the NYSE on that day was $30.46, representing a 4.96% premium to such NAV. As of November 30, 2017, the net
assets of the Fund attributable to Common Shares were $1,450,051,981 and the Fund had outstanding 49,964,011 Common
Shares.</font></p><a name="chapter_10_4819"></A><a name="chapter_10-sect1_1_4819"></A><p style="padding:0;margin-top:1em;margin-bottom:0em;"><font face="Arial, Helvetica, sans-serif" size="3"><b>Plan of Distribution<br> </b></font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2">Under the Sales Agreement among the Fund, the Investment Manager and JonesTrading, upon written instructions from the Fund, JonesTrading will use its commercially reasonable efforts consistent with its
normal sales and trading practices, to sell the Fund's Common Shares, under the terms and subject to the conditions set forth in the Sales Agreement. JonesTrading's solicitation will continue until the Fund instructs JonesTrading to suspend the
solicitations and offers or the solicitation is otherwise terminated in accordance with the Sales Agreement. The Fund will instruct JonesTrading as to the amount of Common Shares to be sold by JonesTrading. The Fund may instruct JonesTrading not to
sell the Common Shares if the sales cannot be effected at or above the price designated by the Fund in any instruction. The Fund or JonesTrading may suspend the offering of Common Shares upon proper notice and subject to other conditions.</font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">JonesTrading will provide written confirmation to the Fund not later than the opening of the trading day on the NYSE following
the trading day on which the Common Shares are sold under the Sales Agreement. Each confirmation will include the number of shares sold on the preceding day, the net proceeds to the Fund and the compensation payable by the Fund to JonesTrading in
connection with the sales.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
<table width="100%">
<tr>
<td align="right" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">December 21, 2017 | <b>SUPPLEMENT</b></FONT></p> </td>
<td align="right" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">S-7</FONT></p> </td> </tr> </table><hr style="size:3;color:#999999;width:100%;">
<DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund will pay JonesTrading commissions for its services in acting as agent in the sale of the Common Shares. JonesTrading will be
entitled to compensation of up to 1.00% of the gross proceeds with respect to sales of Common Shares actually effected by JonesTrading under the Sales Agreement. There is no guarantee that there will be any sales of the Common Shares pursuant to
this Prospectus Supplement and the accompanying Prospectus.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Actual sales, if any, of the Common Shares under this
Prospectus Supplement and the accompanying Prospectus may be less than as set forth in this paragraph. In addition, the price per share of any such sale may be greater or less than the price set forth in this paragraph, depending on the market price
of the Shares at the time of any such sale. Assuming 6,414,949 Shares offered hereby are sold at a price of $28.75 per share, we estimate that the total expenses for the offering, excluding compensation payable to JonesTrading under the terms of the
Sales Agreement, would be approximately $262,136.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Settlement for sales of any Common Shares will occur on the second
business day following the date on which such sales are made, or on such earlier date that is agreed upon by the Fund and JonesTrading in connection with a particular transaction, whereupon the net proceeds of the sales will be delivered to the
Fund. There is no arrangement for funds to be received in an escrow, trust or similar arrangement.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">In connection with
the sale of the Common Shares on behalf of the Fund, JonesTrading may, and will with respect to sales effected in an "at the market" offering, be deemed to be an "underwriter" within the meaning of the 1933 Act, and the compensation of JonesTrading
may be deemed to be underwriting commissions or discounts. The Fund has agreed to provide indemnification and contribution to JonesTrading against certain civil liabilities, including certain liabilities under the 1933 Act.</font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The offering of Common Shares pursuant to the Sales Agreement will terminate upon the earlier of (1) the sale of all Common Shares subject
the Sales Agreement or (2) termination of the Sales Agreement. The Sales Agreement may be terminated by the Fund in its sole discretion at any time by giving notice to JonesTrading. In addition, JonesTrading may terminate the Sales Agreement under
the circumstances specified in the Sales Agreement and in its sole discretion by giving notice to us at any time following the period of twelve (12) months after the date of the Sales Agreement.</font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The Fund may engage in brokerage and other dealings with JonesTrading in the ordinary course of business for which JonesTrading may
receive customary fees and commissions for its services on these transactions.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">The principal business address of
JonesTrading is 757 3rd Avenue, 23rd Floor, New York, New York 10017.</font></p><a name="chapter_11_4819"></A><a name="chapter_11-sect1_1_4819"></A><p style="padding:0;margin-top:1em;margin-bottom:0em;"><font
face="Arial, Helvetica, sans-serif" size="3"><b>Legal Matters</b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">Certain legal matters will be passed on for the Fund
by Ropes &#38; Gray LLP, Boston, Massachusetts.</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p><a name="chapter_12_4819"></A><a name="chapter_12-sect1_1_4819"></A><p style="padding:0;margin-top:1em;margin-bottom:0em;"><font
face="Arial, Helvetica, sans-serif" size="3"><b>Additional Information<br> </b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">This Prospectus Supplement and the accompanying Prospectus constitute part of a Registration Statement
filed by the Fund with the SEC under the 1933 Act and the 1940 Act. This Prospectus Supplement and the accompanying Prospectus omit certain of the information contained in the Registration Statement, and reference is hereby made to the Registration
Statement and related exhibits for further information with respect to the Fund and the Common Shares offered hereby. Any statements contained herein concerning the provisions of any document are not necessarily complete, and, in each instance,
reference is made to the copy of such document filed as an exhibit to the Registration Statement or otherwise filed with the SEC. Each such statement is qualified in its entirety by such reference. The complete Registration Statement may be obtained
from the SEC upon payment of the fee prescribed by its rules and regulations or free of charge through the SEC's web site (http://www.sec.gov).</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
<table width="100%">
<tr>
<td align="left" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">S-8 &#160;&#160;&#160;&#160; </FONT></p> </td>
<td align="left" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><b>SUPPLEMENT</b> | PIMCO Dynamic Income Fund &#160;&#160;&#160;&#160; </FONT></p> </td> </tr>
</table><hr style="size:3;color:#999999;width:100%;"> <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;
</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p><a name="chapter_13_4819"></A><a name="chapter_13-sect1_1_4819"></A><p align="center"><font
face="Arial, Helvetica, sans-serif" size="2">
<img src="g450385pr4819img001.jpg"></font></p> <p align="center"><font face="Arial, Helvetica, sans-serif" size="2"><b>Up to&#160;9,500,000 Shares</b></font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;" align="center"><font
face="Arial, Helvetica, sans-serif" size="3"><b>PIMCO Dynamic Income Fund</b></font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;" align="center"><font face="Arial, Helvetica, sans-serif" size="3"><b>_________________<br> <br>
</b></font></p> <p style="padding:0;margin-top:1em;margin-bottom:0em;" align="center"><font face="Arial, Helvetica, sans-serif" size="3"><b><b><b>PROSPECTUS SUPPLEMENT</b></b></b></font></p> <p align="center"><font
face="Arial, Helvetica, sans-serif" size="2">______________</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p> <p align="center"><font face="Arial, Helvetica, sans-serif" size="2">December 21, 2017</font></p> <p><font
face="Arial, Helvetica, sans-serif" size="2"></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p> <p><font face="Arial, Helvetica, sans-serif" size="2"></font></p>
<p><font face="Arial, Helvetica, sans-serif" size="2"><b>Until January 15, 2018 (25 days after the date of this Prospectus Supplement), all dealers that buy, sell or trade the Common Shares, whether or not participating in this offering, may be
required to deliver a prospectus. This is in addition to the dealers' obligation to deliver a prospectus when acting as underwriters.</b></font></p> <p><font face="Arial, Helvetica, sans-serif" size="2">&#160;</font></p>
<table width="100%">
<tr>
<td align="right" width="48.25%" colspan="2"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">December 21, 2017 | <b>SUPPLEMENT</b></FONT></p> </td>
<td align="right" width="3.5%"> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif">S-9</FONT></p> </td> </tr> </table><hr style="size:3;color:#999999;width:100%;">
<DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"> <P STYLE="margin: 0pt">&#160;</P> </DIV> <p style="padding:0"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><a href="#toc">Table of Contents</A></FONT></p>
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>

 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>PIMCO DYNAMIC INCOME FUND </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>Statement of Additional Information </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>December&nbsp;21, 2017 </B></P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman">PIMCO
Dynamic Income Fund (the &#147;Fund&#148;) is a diversified, closed-end management investment company. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman">Pacific Investment Management Company LLC
(&#147;PIMCO&#148; or the &#147;Investment Manager&#148;), 650 Newport Center Drive, Newport Beach, California 92660, is the investment manager to the Fund. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">This Statement of Additional Information relating to the common shares of the Fund (the &#147;Common Shares&#148;) is not a prospectus, and
should be read in conjunction with the Fund&#146;s prospectus relating thereto dated December&nbsp;21, 2017 (the &#147;Prospectus&#148;) and any related prospectus supplement. This Statement of Additional Information does not include all information
that a prospective investor should consider before purchasing Common Shares, and investors should obtain and read the Prospectus and any related prospectus supplement prior to purchasing such shares. A copy of the Prospectus and any related
prospectus supplement may be obtained without charge by calling 844-377-4626. You may also obtain a copy of the Prospectus or any related prospectus supplement on the Web site of the Securities and Exchange Commission (the &#147;SEC&#148;) at
http://www.sec.gov. Capitalized terms used but not defined in this Statement of Additional Information have the meanings ascribed to them in the Prospectus and any related prospectus supplement. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">1 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B><A NAME="saitoc"></A>TABLE OF CONTENTS </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:11pt" ALIGN="center">


<TR>
<TD WIDTH="95%"></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD></TD></TR>


<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:11pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:11pt; font-family:Times New Roman"><A HREF="#sai450385_1">The Fund</A></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">3</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:11pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:11pt; font-family:Times New Roman"><A HREF="#sai450385_2">Investment Objectives and Policies</A></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">3</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:11pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:11pt; font-family:Times New Roman"><A HREF="#sai450385_3">Investment Restrictions</A></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">80</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:11pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:11pt; font-family:Times New Roman"><A HREF="#sai450385_4">Management of the Fund</A></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">84</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:11pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:11pt; font-family:Times New Roman"><A HREF="#sai450385_5">Investment Manager</A></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">101</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:11pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:11pt; font-family:Times New Roman"><A HREF="#sai450385_6">Portfolio Transactions</A></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">110</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:11pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:11pt; font-family:Times New Roman"><A HREF="#sai450385_7">Distributions</A></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">113</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:11pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:11pt; font-family:Times New Roman"><A HREF="#sai450385_8">Description of Shares</A></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">113</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:11pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:11pt; font-family:Times New Roman"><A HREF="#sai450385_9">Anti-Takeover and Other Provisions in the Declaration of Trust</A></P></TD>

<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">114</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:11pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:11pt; font-family:Times New Roman"><A HREF="#sai450385_10">Repurchase of Common Shares; Conversion to Open-End Fund</A></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">116</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:11pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:11pt; font-family:Times New Roman"><A HREF="#sai450385_11">Taxation</A></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">118</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:11pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:11pt; font-family:Times New Roman"><A HREF="#sai450385_12">Performance Related and Comparative Information</A></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">135</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:11pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:11pt; font-family:Times New Roman"><A HREF="#sai450385_13">Custodian, Transfer Agent and Dividend Disbursement Agent</A></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">136</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:11pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:11pt; font-family:Times New Roman"><A HREF="#sai450385_14">Independent Registered Public Accounting Firm</A></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">136</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:11pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:11pt; font-family:Times New Roman"><A HREF="#sai450385_15">Counsel</A></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">136</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:11pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:11pt; font-family:Times New Roman"><A HREF="#sai450385_16">Registration Statement</A></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">136</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:11pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:11pt; font-family:Times New Roman"><A HREF="#sai450385_17">Financial Statements</A></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">137</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:11pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:11pt; font-family:Times New Roman"><A HREF="#sai450385_18">Appendix A &#150; Procedures for Shareholders to Submit Nominee
Candidates</A></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP>A-1</TD></TR>
</TABLE>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">2 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B><A NAME="sai450385_1"></A>THE FUND </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund commenced operations on May&nbsp;30, 2012, following the initial public offering of its common shares. The Fund was organized as a
Massachusetts business trust on January&nbsp;19, 2011. Prior to commencing operations on May&nbsp;30, 2012, the Fund had no operations other than matters relating to its organization and registration as a diversified, closed-end management company
registered under the Investment Company Act of 1940, as amended (the &#147;1940 Act&#148;). </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B><A NAME="sai450385_2"></A>INVESTMENT
OBJECTIVES AND POLICIES </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The investment objectives and general investment policies of the Fund are described in the Prospectus.
Additional information concerning the characteristics of certain of the Fund&#146;s investments is set forth below. Unless a strategy or policy described below is specifically prohibited by the investment restrictions listed in the Prospectus, by
the investment restrictions under &#147;Investment Restrictions&#148; in this Statement of Additional Information, or by applicable law, the Fund may engage in each of the practices described below. However, the Fund is not required to engage in any
particular transaction or purchase any particular type of securities or investment even if to do so might benefit the Fund. Unless otherwise stated herein, all investment policies of the Fund may be changed by the Board of Trustees (the
&#147;Board&#146;) without shareholder approval. In addition, the Fund may be subject to restrictions on its ability to utilize certain investments or investment techniques. Unless otherwise stated herein, these additional restrictions may be
changed with the consent of the Board but without approval by or notice to shareholders. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">When used in this Statement of Additional
Information, the term &#147;invest&#148; includes both direct investing and indirect investing and the term &#147;investments&#148; includes both direct investments and indirect investments. For example, the Fund may invest indirectly by investing
in derivatives or through its wholly-owned and controlled subsidiaries (each, a &#147;Subsidiary&#148;). The Fund may be exposed to the different types of investments described in the Prospectus and this Statement of Additional Information through
its investments in its Subsidiaries. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>High Yield Securities (&#147;Junk Bonds&#148;) and Securities of Distressed Companies </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund may invest without limit in debt instruments that are, at the time of purchase, rated below investment grade, or unrated but
determined by PIMCO to be of comparable quality. However, the Fund will not normally invest more than 20% of its total assets in debt instruments, other than mortgage-related and other asset-backed securities, that are, at the time of purchase,
rated CCC+ or lower by S&amp;P Global Ratings (&#147;S&amp;P&#148;) and Fitch, Inc. (&#147;Fitch&#148;) and Caa1 or lower by Moody&#146;s Investors Services Inc. (&#147;Moody&#146;s&#148;), or that are unrated but determined by PIMCO to be of
comparable quality to securities so rated. The Fund may invest without limit in mortgage-related and other asset-backed securities regardless of rating&#151;i.e., of any credit quality. For purposes of applying the foregoing policies, in the case of
securities with split ratings (i.e., a security receiving two different ratings from two different rating agencies), the Fund will apply the higher of the applicable ratings. Subject to the aforementioned investment restrictions, the Fund may invest
in securities of stressed issuers, which include securities at risk of being in default as to the repayment of principal and/or interest at the time of acquisition by the Fund or that are rated in the lower rating categories by one or more
nationally recognized statistical rating organizations (for example, Ca or lower by Moody&#146;s or CC or lower by S&amp;P or Fitch) or, if unrated, are determined by PIMCO to be of comparable quality. Below investment grade securities are commonly
referred to as &#147;high yield&#148; securities or &#147;junk bonds.&#148; Debt instruments in the lowest investment grade category also may be considered to possess some speculative characteristics. A description of the ratings categories used is
set forth in Appendix A to the Prospectus. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">3 </P>


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  <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">A security is considered to be below &#147;investment grade&#148; quality if it is either
(1)&nbsp;not rated in one of the four highest rating categories by one of the nationally recognized statistical rating organizations (&#147;NRSROs&#148;) (i.e., rated Ba or below by Moody&#146;s, BB or below by S&amp;P or BB or below by Fitch) or
(2)&nbsp;if unrated, determined by PIMCO to be of comparable quality to obligations so rated. Investments in securities rated below investment grade are described as &#147;speculative&#148; by Moody&#146;s, S&amp;P and Fitch, and are commonly
referred to as &#147;high yield&#148; securities or &#147;junk bonds.&#148; Additional information about Moody&#146;s, S&amp;P&#146;s and Fitch&#146;s securities ratings is included in Appendix A to the Prospectus. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Investors should consider the risks associated with high yield securities and debt securities of distressed companies before investing in the
Fund. Investment in lower rated corporate debt securities and securities of distressed companies generally provides greater income and increased opportunity for capital appreciation than investments in higher quality securities, but it also
typically entails greater price volatility and principal and income risk. Securities of distressed companies include both debt and equity securities. High yield securities and debt securities of distressed companies are regarded as predominantly
speculative with respect to the issuer&#146;s continuing ability to meet principal and interest payments. Issuers of high yield and distressed company securities may be involved in restructurings or bankruptcy proceedings that may not be successful.
Analysis of the creditworthiness of issuers of debt securities that are high yield or debt securities of distressed companies may be more complex than for issuers of higher quality debt. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund&#146;s investments in high yield securities, debt securities of distressed companies and unrated securities of similar credit quality
may subject it to greater levels of credit risk, call risk and liquidity risk than funds that do not invest in such securities. These securities are considered predominantly speculative with respect to an issuer&#146;s continuing ability to make
principal and interest payments, and may be more volatile than other types of securities. An economic downturn or individual corporate developments could adversely affect the market for these securities and reduce the Fund&#146;s ability to sell
these securities at an advantageous time or price. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">A projection of an economic downturn, for example, could cause a decline in prices
of high yield securities and debt securities of distressed companies because the advent of a recession could lessen the ability of a highly leveraged company to make principal and interest payments on its debt securities, and a high yield security
may lose significant market value before a default occurs. If an issuer of high yield or distressed company securities defaults, in addition to risking payment of all or a portion of interest and principal, the Fund may incur additional expenses to
seek recovery of their respective investments. In the case of securities structured as zero-coupon or pay-in-kind securities, their market prices are affected to a greater extent by interest rate changes, and therefore tend to be more volatile than
securities which pay interest periodically and in cash. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Issuers of high yield securities and securities of distressed companies may have
the right to &#147;call&#148; or redeem the issue prior to maturity, which may result in the Fund having to reinvest the proceeds in other high yield securities 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 these securities. In addition, the high yield securities and securities of distressed companies in which the Fund invests may not be listed on any exchange and a secondary market for such securities
may be comparatively illiquid relative to markets for other more liquid fixed income securities. Consequently, transactions in high yield securities and distressed company securities may involve greater costs than transactions in more actively
traded securities, which could adversely affect the price at which the Fund could sell a </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">4 </P>


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  <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">
high yield or distressed company security, and could adversely affect the daily net asset value of the shares. A lack of publicly-available information, irregular trading activity and wide
bid/ask spreads among other factors, may, in certain circumstances, make high yield and distressed company debt 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 or distressed company 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 and securities of distressed companies, an investment in the Fund should be considered speculative. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Analysis of the creditworthiness of issuers of high yield securities and distressed company securities may be more complex than for issuers of
higher quality debt securities, and achievement of the Fund&#146;s investment objectives may, to the extent of its investments in high yield and distressed company securities, depend more heavily on PIMCO&#146;s creditworthiness analysis than would
be the case if the Fund were investing in higher quality securities. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">High yield securities structured as &#147;zero-coupon&#148;
bonds or &#147;payment-in-kind&#148; securities (&#147;PIKs&#148;) 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 income greater than the total amount of cash interest the Fund has actually received. PIMCO seeks to reduce these risks through credit analysis and attention to current developments and trends in both the economy and
financial markets. Even though such securities do not pay current interest in cash, the Fund nonetheless is required to accrue interest income on these investments and to distribute the interest income on a current basis. Thus, the Fund could be
required at times to sell other investments in order to satisfy its distribution requirements (including when it is not advantageous to do so). </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The secondary market on which high yield securities are traded may be less liquid than the market for higher grade securities. Less liquidity
in the secondary trading market could adversely affect the price at which the Fund could sell a high yield security, and could adversely affect the daily net asset value of the shares. Lower liquidity in secondary markets could adversely affect the
value of high yield/high risk securities held by the Fund. While lower rated securities typically are less sensitive to interest rate changes than higher rated securities, the market prices of high yield/high risk securities structured as zero
coupon bonds or PIKs may be affected to a greater extent by interest rate changes. For instance, adverse publicity and investor perceptions, whether or not based on fundamental analysis, may decrease the values and liquidity of high yield
securities, especially in a thinly traded market. When secondary markets for high yield and distressed company securities are less liquid than the market for higher grade securities, it may be more difficult to value the securities because such
valuation may require more research, and elements of judgment may play a greater role in the valuation because there is less reliable, objective data available. PIMCO seeks to minimize the risks of investing in all securities through in-depth credit
analysis and attention to current developments in interest rates and market conditions. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The use of credit ratings as the sole method of
evaluating high yield securities and debt securities of distressed companies can involve certain risks. For example, credit ratings evaluate the safety of principal and interest payments of a debt security, not the market value risk of the security.
Also, credit rating agencies may fail to change credit ratings in a timely fashion to reflect events since the security was last rated. PIMCO does not rely solely on credit ratings when selecting debt securities for the Fund, and develops its own
independent analysis of issuer credit quality. If a credit rating agency changes the rating of a debt security held by the Fund, the Fund may retain the security if PIMCO deems it in the best interest of shareholders. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">5 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Mortgage-Related and Other Asset-Backed Securities </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Mortgage-related securities are interests in pools of residential or commercial mortgage loans, including mortgage loans made by savings and
loan institutions, mortgage bankers, commercial banks and others. Such mortgage loans may include reperforming loans (&#147;RPLs&#148;), which are loans that have previously been delinquent but are current at the time securitized. Pools of mortgage
loans are assembled as securities for sale to investors by various governmental, government-related and private organizations. The Fund may invest in a variety of mortgage-related and other asset-backed securities issued by government agencies or
other governmental entities or by private originators or issuers. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">As a matter of fundamental policy, the Fund will normally invest
at least 25% of its total assets (i.e., concentrate) in privately issued (commonly known as &#147;non-agency&#148;) mortgage-related securities. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The mortgage-related securities in which the Fund may invest include, without limitation, mortgage pass-through securities, collateralized
mortgage obligations (&#147;CMOs&#148;), commercial or residential mortgage-backed securities, mortgage dollar rolls, CMO residuals, stripped mortgage- backed securities (&#147;SMBSs&#148;) and other securities that directly or indirectly represent
a participation in, or are secured by and payable from, mortgage loans on real property. The Fund may also invest in other types of asset-backed securities, including collateralized debt obligations (&#147;CDOs&#148;), which include collateralized
bond obligations (&#147;CBOs&#148;), collateralized loan obligations (&#147;CLOs&#148;) and other similarly structured securities. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman">The
mortgage-related securities in which the Fund may invest may pay variable or fixed rates of interest. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Through investments in
mortgage-related securities, including those that are issued by private issuers, the Fund may have some exposure to subprime loans as well as to the mortgage and credit markets generally. Private issuers include commercial banks, savings
associations, mortgage companies, investment banking firms, finance companies and special purpose finance entities (called special purpose vehicles or SPVs) and other entities that acquire and package mortgage loans for resale as mortgage-related
securities. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">In addition, mortgage-related securities that are issued by private issuers are not subject to the underwriting requirements
for the underlying mortgages that are applicable to those mortgage- related securities that have a government or government-sponsored entity guarantee. As a result, the mortgage loans underlying private mortgage-related securities may, and
frequently do, have less favorable collateral, credit risk or other underwriting characteristics than government or government-sponsored mortgage-related securities and have wider variances in a number of terms including interest rate, term, size,
purpose and borrower characteristics. Privately issued pools more frequently include second mortgages, high loan-to-value mortgages and manufactured housing loans. The coupon rates and maturities of the underlying mortgage loans in a private- label
mortgage-related securities pool may vary to a greater extent than those included in a government guaranteed pool, and the pool may include subprime mortgage loans. Subprime loans refer to loans made to borrowers with weakened credit histories or
with a lower capacity to make timely payments on their loans. For these reasons, the loans underlying these securities have had in many cases higher default rates than those loans that meet government underwriting requirements. </P>
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  <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund may purchase privately issued mortgage-related securities that are originated,
packaged and serviced by third party entities. It is possible these third parties could have interests that are in conflict with the holders of mortgage-related securities, and such holders (such as the Fund) could have rights against the third
parties or their affiliates. For example, if a loan originator, servicer or its affiliates engaged in negligence or willful misconduct in carrying out its duties, then a holder of the mortgage-related security could seek recourse against the
originator/servicer or its affiliates, as applicable. Also, as a loan originator/servicer, the originator/servicer or its affiliates may make certain representations and warranties regarding the quality of the mortgages and properties underlying a
mortgage-related security. If one or more of those representations or warranties is false, then the holders of the mortgage-related securities (such as the Fund) could trigger an obligation of the originator/servicer or its affiliates, as
applicable, to repurchase the mortgages from the issuing trust. Notwithstanding the foregoing, many of the third parties that are legally bound by trust and other documents have failed to perform their respective duties, as stipulated in such trust
and other documents, and investors have had limited success in enforcing terms. To the extent third party entities involved with privately issued mortgage-related securities are involved in litigation relating to the securities, actions may be taken
that are adverse to the interests of holders of the mortgage-related securities, including the Fund. For example, third parties may seek to withhold proceeds due to holders of the mortgage-related securities, including the Fund, to cover legal or
related costs. Any such action could result in losses to the Fund. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">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&#146;s
portfolio may be particularly difficult to value because of the complexities involved in assessing the value of the underlying mortgage loans. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The risk of non-payment is greater for mortgage-related securities that are backed by mortgage pools that contain subprime loans, but a level
of risk exists for all loans. Market factors adversely affecting mortgage loan repayments may include a general economic turndown, high unemployment, a general slowdown in the real estate market, a drop in the market prices of real estate, or an
increase in interest rates resulting in higher mortgage payments by holders of adjustable rate mortgages. The 2008 financial downturn&#151;particularly the increase in delinquencies and defaults on residential mortgages, falling home prices, and
unemployment&#151;has adversely affected the market for mortgage-related securities. In addition, various market and governmental actions may impair the ability to foreclose on or exercise other remedies against underlying mortgage holders, or may
reduce the amount received upon foreclosure. These factors have caused certain mortgage-related securities to experience lower valuations and reduced liquidity. There is also no assurance that the U.S. Government will take further action to support
the mortgage-related securities industry, as it has in the past, should the economic downturn continue or the economy experience another downturn. Further, recent legislative action and any future government actions may significantly alter the
manner in which the mortgage-related securities market functions. Each of these factors could ultimately increase the risk that the Fund could realize losses on mortgage-related securities. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Mortgage-related securities that are issued or guaranteed by the U.S. Government, its agencies or instrumentalities, are not subject to the
Fund&#146;s industry concentration restriction (see &#147;Investment Restrictions&#148;) by virtue of the exclusion from that restriction available to all U.S. Government securities. </P>
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  <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><B><I>Mortgage Pass-Through Securities</I></B><I>.</I> Mortgage pass-through securities are
securities representing interests in &#147;pools&#148; of mortgage loans secured by residential or commercial real property. Interests in pools of mortgage-related securities differ from other forms of debt securities, which normally provide for
periodic payment of interest in fixed or variable amounts with principal payments at maturity or specified call dates. Instead, these securities provide a monthly payment that consists of both interest and principal payments. In effect, these
payments are a &#147;pass-through&#148; of the monthly payments made by the individual borrowers on their residential or commercial mortgage loans, net of any fees paid to the issuer or guarantor of such securities. Additional payments are caused by
repayments of principal resulting from the sale of the underlying property, refinancing or foreclosure, net of fees or costs that may be incurred. Some mortgage-related securities (such as securities issued by the Government National Mortgage
Association (&#147;Ginnie Mae&#148; or &#147;GNMA&#148;)) are described as &#147;modified pass-through.&#148; These securities entitle the holder to receive all interest and principal payments owed on the mortgage pool, net of certain fees, at the
scheduled payment dates regardless of whether or not the mortgagor actually makes the payment. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The rate of prepayments on underlying
mortgages will affect the price and volatility of a mortgage-related security, and may have the effect of shortening or extending the effective duration of the security relative to what was anticipated at the time of purchase. Early repayment of
principal on some mortgage-related securities (arising from prepayments of principal due to the sale of the underlying property, refinancing, or foreclosure, net of fees and costs that may be incurred) may expose the Fund to a lower rate of return
upon reinvestment of principal. Also, if a security subject to prepayment has been purchased at a premium, the value of the premium would be lost in the event of prepayment. Like other fixed income securities, when interest rates rise, the value of
a mortgage-related security generally will decline; however, when interest rates are declining, the value of mortgage-related securities with prepayment features may not increase as much as other fixed income securities. Adjustable rate
mortgage-related and other ABS are also subject to some interest rate risk. For example, because interest rates on most adjustable rate mortgage- and other ABS only reset periodically (e.g., monthly or quarterly), changes in prevailing interest
rates (and particularly sudden and significant changes) can be expected to cause some fluctuations in the market value of these securities, including declines in value as interest rates rise. In addition, to the extent that unanticipated rates of
prepayment on underlying mortgages increase the effective duration of a mortgage-related security, the volatility of such security can be expected to increase. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The residential mortgage market in the United States recently has experienced difficulties that may adversely affect the performance and
market value of certain of the Fund&#146;s mortgage-related investments. Delinquencies and losses on residential mortgage loans (especially subprime and second-lien mortgage loans) generally have increased recently and may continue to increase, and
a decline in or flattening of housing values (as has recently been experienced and may continue to be experienced in many housing markets) may exacerbate such delinquencies and losses. Borrowers with adjustable rate mortgage loans are more sensitive
to changes in interest rates, which affect their monthly mortgage payments, and may be unable to secure replacement mortgages at comparably low interest rates. Also, a number of residential mortgage loan originators have experienced serious
financial difficulties or bankruptcy. Owing largely to the foregoing, reduced investor demand for mortgage loans and mortgage-related securities and increased investor yield requirements have caused limited liquidity in the secondary market for
certain mortgage-related securities, which can adversely affect the market value of mortgage-related securities. It is possible that such limited liquidity in such secondary markets could continue or worsen. </P>
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  <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><B><I>Agency Mortgage-Related Securities.</I></B> Payment of principal and interest on some
mortgage pass-through securities (but not the market value of the securities themselves) may be guaranteed by the full faith and credit of the U.S. Government (in the case of securities guaranteed by GNMA) or guaranteed by agencies or
instrumentalities of the U.S. Government (in the case of securities guaranteed by the Federal National Mortgage Association (&#147;Fannie Mae&#148; or &#147;FNMA&#148;) or the Federal Home Loan Mortgage Corporation (&#147;Freddie Mac&#148; or
&#147;FHLMC&#148;)). The principal governmental guarantor of mortgage-related securities is GNMA. GNMA is a wholly-owned U.S. Government corporation within the United States Department of Housing and Urban Development (the &#147;Department of
Housing and Urban Development&#148; or &#147;HUD&#148;). GNMA is authorized to guarantee, with the full faith and credit of the U.S. Government, the timely payment of principal and interest on securities issued by institutions approved by GNMA (such
as savings and loan institutions, commercial banks and mortgage bankers) and backed by pools of mortgages insured by the Federal Housing Administration (the &#147;FHA&#148;), or guaranteed by the Department of Veterans Affairs (the &#147;VA&#148;).
</P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Government-related guarantors (i.e., not backed by the full faith and credit of the U.S. Government) include FNMA and FHLMC. FNMA
was, until recently, a government-sponsored corporation owned entirely by private stockholders, and subject to general regulation by HUD and the Office of Federal Housing Enterprise Oversight. As described below under &#147;U.S. Government
Securities,&#148; FNMA is now under conservatorship by the Federal Housing Finance Agency (&#147;FHFA&#148;). FNMA primarily purchases conventional (i.e., not insured or guaranteed by any government agency) residential mortgages from a list of
approved seller/servicers, which includes state and federally chartered savings and loan associations, mutual savings banks, commercial banks, credit unions and mortgage bankers, although it may purchase other types of mortgages as well.
Pass-through securities issued by FNMA are guaranteed as to timely payment of principal and interest by FNMA but are not backed by the full faith and credit of the U.S. Government. Instead, they are supported only by the discretionary authority of
the U.S. Government to purchase the agency&#146;s obligations. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">FHLMC was created by Congress in 1970 for the purpose of increasing
the availability of mortgage credit for residential housing. It was, until recently, a government-sponsored corporation formerly owned by the twelve Federal Home Loan Banks and then owned entirely by private stockholders. As described below under
U.S. Government Securities, FHLMC is now under conservatorship by the FHFA. FHLMC issues Participation Certificates (&#147;PCs&#148;) which are pass-through securities, each representing an undivided interest in a pool of residential mortgages.
FHLMC guarantees the timely payment of interest and ultimate collection of principal, but PCs are not backed by the full faith and credit of the U.S. Government. Instead, they are supported only by the discretionary authority of the U.S. Government
to purchase the agency&#146;s obligations. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">FNMA and FHLMC also securitize RPLs. For example, in FNMA&#146;s case, the RPLs are
single-family, fixed rate reperforming loans&nbsp;that generally were previously placed in an MBS trust guaranteed by FNMA, purchased from the trust by FNMA and held as a distressed asset after four or more months of delinquency, and subsequently
became current (<I>i.e.</I> performing) again.&nbsp;Such RPLs may have exited delinquency through efforts at reducing defaults (<I>e.g.</I>, loan modification).&nbsp;In selecting RPLs for securitization, FNMA follows certain criteria related to
length of time the loan has been performing, the type of loan (single-family, fixed rate), and the status of the loan as first lien, among other things.&nbsp;FNMA may include different loan structures and modification programs in the future. </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">On September&nbsp;6, 2008, the FHFA placed FNMA and FHLMC into conservatorship. As the
conservator, the FHFA succeeded to all rights, titles, powers and privileges of FNMA and FHLMC and of any stockholder, officer or director of FNMA and FHLMC with respect to FNMA and FHLMC and the assets of FNMA and FHLMC. FHFA selected a new chief
executive officer and chairman of the board of directors for each of FNMA and FHLMC. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">In connection with the conservatorship, the U.S.
Department of the Treasury (the &#147;U.S. Treasury&#148;) entered into a Senior Preferred Stock Purchase Agreement with each of FNMA and FHLMC pursuant to which the U.S. Treasury will purchase up to an aggregate of $100 billion of each of FNMA and
FHLMC to maintain a positive net worth in each enterprise. This agreement contains various covenants that severely limit each enterprise&#146;s operations. In exchange for entering into these agreements, the U.S. Treasury received $1 billion of each
enterprise&#146;s senior preferred securities and warrants to purchase 79.9% of each enterprise&#146;s common stock. On February&nbsp;18, 2009, the U.S. Treasury announced that it was doubling the size of its commitment to each enterprise under the
Senior Preferred Stock Program to $200 billion. The U.S. Treasury&#146;s obligations under the Senior Preferred Stock Program are for an indefinite period of time for a maximum amount of $200 billion per enterprise. In 2009, the U.S. Treasury
further amended the Senior Preferred Stock Purchase Agreement to allow the cap on the U.S. Treasury&#146;s funding commitment to increase as necessary to accommodate any cumulative reduction in FNMA&#146;s and FHLMC&#146;s net worth through the end
of 2012. In August 2012, the Senior Preferred Stock Purchase Agreement was further amended to, among other things, accelerate the wind down of the retained portfolio, terminate the requirement that FNMA and FHLMC each pay a 10% dividend annually on
all amounts received under the funding commitment, and require the submission of an annual risk management plan to the U.S. Treasury. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">FNMA and FHLMC are continuing to operate as going concerns while in conservatorship and each remains liable for all of its obligations,
including its guaranty obligations, associated with its mortgage-backed securities. The Senior Preferred Stock Purchase Agreement is intended to enhance each of FNMA&#146;s and FHLMC&#146;s ability to meet its obligations. The FHFA has indicated
that the conservatorship of each enterprise will end when the director of FHFA determines that FHFA&#146;s plan to restore the enterprise to a safe and solvent condition has been completed. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Under the Federal Housing Finance Regulatory Reform Act of 2008 (the &#147;Reform Act&#148;), which was included as part of the Housing and
Economic Recovery Act of 2008, FHFA, as conservator or receiver, has the power to repudiate any contract entered into by FNMA or FHLMC prior to FHFA&#146;s appointment as conservator or receiver, as applicable, if FHFA determines, in its sole
discretion, that performance of the contract is burdensome and that repudiation of the contract promotes the orderly administration of FNMA&#146;s or FHLMC&#146;s affairs. The Reform Act requires FHFA to exercise its right to repudiate any contract
within a reasonable period of time after its appointment as conservator or receiver. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">FHFA, in its capacity as conservator, has indicated
that it has no intention to repudiate the guaranty obligations of FNMA or FHLMC because FHFA views repudiation as incompatible with the goals of the conservatorship. However, in the event that FHFA, as conservator or if it is later appointed as
receiver for FNMA or FHLMC, were to repudiate any such guaranty obligation, the conservatorship or receivership estate, as applicable, would be liable for actual direct compensatory damages in accordance with the provisions of the Reform Act. Any
such liability could be satisfied only to the extent of FNMA&#146;s or FHLMC&#146;s assets available therefor. </P>
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  <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">In the event of repudiation, the payments of interest to holders of FNMA or FHLMC
mortgage-backed securities would be reduced if payments on the mortgage loans represented in the mortgage loan groups related to such mortgage-backed securities are not made by the borrowers or advanced by the servicer. Any actual direct
compensatory damages for repudiating these guaranty obligations may not be sufficient to offset any shortfalls experienced by such mortgage-backed security holders. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Further, in its capacity as conservator or receiver, FHFA has the right to transfer or sell any asset or liability of FNMA or FHLMC without
any approval, assignment or consent. Although FHFA has stated that it has no present intention to do so, if FHFA, as conservator or receiver, were to transfer any such guaranty obligation to another party, holders of FNMA or FHLMC mortgage-backed
securities would have to rely on that party for satisfaction of the guaranty obligation and would be exposed to the credit risk of that party. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">In addition, certain rights provided to holders of mortgage-backed securities issued by FNMA and FHLMC under the operative documents related
to such securities may not be enforced against FHFA, or enforcement of such rights may be delayed, during the conservatorship or any future receivership. The operative documents for FNMA and FHLMC mortgage-backed securities may provide (or with
respect to securities issued prior to the date of the appointment of the conservator may have provided) that upon the occurrence of an event of default on the part of FNMA or FHLMC, in its capacity as guarantor, which includes the appointment of a
conservator or receiver, holders of such mortgage-backed securities have the right to replace FNMA or FHLMC as trustee if the requisite percentage of mortgage-backed securities holders consent. The Reform Act prevents mortgage-backed security
holders from enforcing such rights if the event of default arises solely because a conservator or receiver has been appointed. The Reform Act also provides that no person may exercise any right or power to terminate, accelerate or declare an event
of default under certain contracts to which FNMA or FHLMC is a party, or obtain possession of or exercise control over any property of FNMA or FHLMC, or affect any contractual rights of FNMA or FHLMC, without the approval of FHFA, as conservator or
receiver, for a period of 45 or 90 days following the appointment of FHFA as conservator or receiver, respectively. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><B><I>Privately
Issued Mortgage-Related (Non-Agency) Securities.</I></B> Commercial banks, savings and loan institutions, private mortgage insurance companies, mortgage bankers and other secondary market issuers also create pass-through pools of conventional
residential mortgage loans. Such issuers may, in addition, be the originators and/or servicers of the underlying mortgage loans as well as the guarantors of the mortgage-related securities. Pools created by such non-governmental issuers generally
offer a higher rate of interest than government and government-related pools because there are no direct or indirect government or agency guarantees of payments in the former pools. However, timely payment of interest and principal of these pools
may be supported by various forms of insurance or guarantees, including individual loan, title, pool and hazard insurance and letters of credit, which may be issued by governmental entities, private insurers or the mortgage poolers. The insurance
and guarantees are issued by governmental entities, private insurers and the mortgage poolers. Such insurance and guarantees, and the creditworthiness of the issuers thereof, will be considered in determining whether a mortgage-related security
meets the Fund&#146;s investment quality standards. There can be no assurance that the private insurers or guarantors can meet their obligations under the insurance policies or guarantee arrangements. The </P>
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  <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">
Fund may buy mortgage-related securities without insurance or guarantees if, through an examination of the loan experience and practices of the originator/servicers and poolers, the Investment
Manager determines that the securities meet the Fund&#146;s quality standards. Securities issued by certain private organizations may not be readily marketable. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The assets underlying mortgage-related securities may be represented by a portfolio of first lien residential or commercial mortgages
(including both whole mortgage loans and mortgage participation interests that may be senior or junior in terms of priority of repayment) or portfolios of mortgage pass-through securities issued or guaranteed by GNMA, FNMA or FHLMC. Mortgage loans
underlying a mortgage-related security may in turn be insured or guaranteed by the FHA or the VA. In the case of privately issued mortgage-related securities whose underlying assets are neither U.S. Government securities nor U.S. Government-insured
mortgages, to the extent that real properties securing such assets may be located in the same geographical region, the security may be subject to a greater risk of default than other comparable securities in the event of adverse economic, political
or business developments that may affect such region and, ultimately, the ability of residential homeowners to make payments of principal and interest on the underlying mortgages. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Investment Manager seeks to manage the portion of the Fund&#146;s assets committed to privately issued mortgage-related securities in a
manner consistent with the Fund&#146;s investment objectives, policies and overall portfolio risk profile. In determining whether and how much to invest in privately issued mortgage-related securities, and how to allocate those assets, the
Investment Manager will consider a number of factors. These include, but are not limited to: (1)&nbsp;the nature of the borrowers (e.g., residential vs. commercial); (2)&nbsp;the collateral loan type (e.g., for residential: First Lien - Jumbo/Prime,
First Lien - Alt-A, First Lien - Subprime, First Lien - Pay-Option or Second Lien; for commercial: Conduit, Large Loan or Single Asset/Single Borrower); and (3)&nbsp;in the case of residential loans, whether they are fixed rate or adjustable
mortgages. Each of these criteria can cause privately issued mortgage-related securities to have differing primary economic characteristics and distinguishable risk factors and performance characteristics. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><B><I>Collateralized Mortgage Obligations (&#147;CMOs&#148;).</I></B> A CMO is a debt obligation of a legal entity that is collateralized by
mortgages and divided into classes. A CMO is a hybrid between a mortgage-backed bond and a mortgage pass-through security. Similar to a bond, interest and prepaid principal is paid, in most cases, semi-annually or on a monthly basis. CMOs may be
collateralized by whole mortgage loans or private mortgage bonds, but are more typically collateralized by portfolios of mortgage pass-through securities issued or guaranteed by GNMA, FNMA or FHLMC, and their income streams. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">CMOs are structured into multiple classes, often referred to as &#147;tranches,&#148; with each class bearing a different stated maturity and
entitled to a different schedule for payments of principal and interest, including prepayments. Actual maturity and average life will depend upon the prepayment experience of the collateral. CMOs provide for a modified form of call protection
through a de facto breakdown of the underlying pool of mortgages according to how quickly the loans are repaid. In the case of certain CMOs (known as &#147;sequential pay&#148; CMOs), payment of principal received from the pool of underlying
mortgages, including prepayments, are applied to the classes of CMOs in the order of their respective final distribution dates. Thus, no payment of principal will be made to any class of sequential pay CMOs until all other classes having an earlier
final distribution date have been paid in full. An investor is partially guarded against a sooner than desired return of principal because of the sequential payments. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">In a typical CMO transaction, a corporation (&#147;issuer&#148;) issues multiple series (e.g., A,
B, C, Z) of CMO bonds (&#147;Bonds&#148;). Proceeds of the Bond offering are used to purchase mortgages or mortgage pass-through certificates (&#147;Collateral&#148;). The Collateral is pledged to a third party trustee as security for the Bonds.
Principal and interest payments from the Collateral are used to pay principal on the Bonds in the order A, B, C, Z. The Series A, B, and C Bonds all bear current interest. Interest on the Series Z Bond is accrued and added to principal and a like
amount is paid as principal on the Series A, B, or C Bond currently being paid off. When the Series A, B, and C Bonds are paid in full, interest and principal on the Series Z Bond begin to be paid currently. With some CMOs, the issuer serves as a
conduit to allow loan originators (primarily builders or savings and loan associations) to borrow against their loan portfolios. CMOs may be less liquid and may exhibit greater price volatility than other types of mortgage- or ABS. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">As CMOs have evolved, some classes of CMO bonds have become more common. For example, the Fund may invest in parallel-pay and planned
amortization class (&#147;PAC&#148;) CMOs and multi-class pass-through certificates. Parallel-pay CMOs and multi-class pass-through certificates are structured to provide payments of principal on each payment date to more than one class. These
simultaneous payments are taken into account in calculating the stated maturity date or final distribution date of each class, which, as with other CMO and multi-class pass-through structures, must be retired by its stated maturity date or final
distribution date but may be retired earlier. PACs generally require payments of a specified amount of principal on each payment date. PACs are parallel-pay CMOs with the required principal amount on such securities having the highest priority after
interest has been paid to all classes. Any CMO or multi-class pass-through structure that includes PAC securities must also have support tranches&#151;known as support bonds, companion bonds or non-PAC bonds&#151;which lend or absorb principal cash
flows to allow the PAC securities to maintain their stated maturities and final distribution dates within a range of actual prepayment experience. These support tranches are subject to a higher level of maturity risk compared to other
mortgage-related securities, and usually provide a higher yield to compensate investors. If principal cash flows are received in amounts outside a pre-determined range such that the support bonds cannot lend or absorb sufficient cash flows to the
PAC securities as intended, the PAC securities are subject to heightened maturity risk. Consistent with the Fund&#146;s investment objectives and policies, PIMCO may invest in various tranches of CMO bonds, including support bonds. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><B><I>FHLMC Collateralized Mortgage Obligations. </I></B>FHLMC CMOs are debt obligations of FHLMC issued in multiple classes having different
maturity dates which are secured by the pledge of a pool of conventional mortgage loans purchased by FHLMC. Payments of principal and interest on the CMOs are made semi-annually, as opposed to monthly. The amount of principal payable on each
semi-annual payment date is determined in accordance with FHLMC&#146;s mandatory sinking fund schedule, which in turn, is equal to approximately 100% of FHA prepayment experience applied to the mortgage collateral pool. All sinking fund payments in
the CMOs are allocated to the retirement of the individual classes of bonds in the order of their stated maturities. Payment of principal on the mortgage loans in the collateral pool in excess of the amount of FHLMC&#146;s minimum sinking fund
obligation for any payment date are paid to the holders of the CMOs as additional sinking fund payments. Because of the &#147;pass-through&#148; nature of all principal payments received on the collateral pool in excess of FHLMC&#146;s minimum
sinking fund requirement, the rate at which principal of the CMOs is actually repaid is likely to be such that each class of bonds will be retired in advance of its scheduled maturity date. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">If collection of principal (including prepayments) on the mortgage loans during any semi-annual
payment period is not sufficient to meet FHLMC&#146;s minimum sinking fund obligation on the next sinking fund payment date, FHLMC agrees to make up the deficiency from its general funds. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Criteria for the mortgage loans in the pool backing the FHLMC CMOs are identical to those of FHLMC PCs. FHLMC has the right to substitute
collateral in the event of delinquencies and/or defaults. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><B><I>Commercial Mortgage-Backed Securities.</I></B> Commercial
mortgage-backed securities include securities that reflect an interest in, and are secured by, mortgage loans on commercial real property. Many of the risks of investing in commercial mortgage-backed securities reflect the risks of investing in the
real estate securing the underlying mortgage loans. These risks reflect the effects of local and other economic conditions on real estate markets, the ability of tenants to make loan payments, and the ability of a property to attract and retain
tenants. Commercial mortgage-backed securities may be less liquid and exhibit greater price volatility than other types of mortgage- or ABS. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><B><I>CMO Residuals.</I></B> CMO residuals are mortgage securities issued by agencies or instrumentalities of the U.S. Government or by
private originators of, or investors in, mortgage loans, including savings and loan associations, homebuilders, mortgage banks, commercial banks, investment banks and special purpose entities of the foregoing. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The cash flow generated by the mortgage assets underlying a series of CMOs is applied first to make required payments of principal and
interest on the CMOs and second to pay the related administrative expenses and any management fee of the issuer. The residual in a CMO structure generally represents the interest in any excess cash flow remaining after making the foregoing payments.
Each payment of such excess cash flow to a holder of the related CMO residual represents income and/or a return of capital. The amount of residual cash flow resulting from a CMO will depend on, among other things, the characteristics of the mortgage
assets, the coupon rate of each class of CMO, prevailing interest rates, the amount of administrative expenses and the pre-payment experience on the mortgage assets. In particular, the yield to maturity on CMO residuals is extremely sensitive to
pre-payments on the related underlying mortgage assets, in the same manner as an interest-only (&#147;IO&#148;) class of SMBSs. See &#147;Stripped Mortgage-Backed Securities&#148; below. In addition, if a series of a CMO includes a class that bears
interest at an adjustable rate, the yield to maturity on the related CMO residual will also be extremely sensitive to changes in the level of the index upon which interest rate adjustments are based. As described below with respect to SMBSs, in
certain circumstances the Fund may fail to recoup fully its initial investment in a CMO residual. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">CMO residuals are generally purchased
and sold by institutional investors through several investment banking firms acting as brokers or dealers. Transactions in CMO residuals are generally completed only after careful review of the characteristics of the securities in question. In
addition, CMO residuals may, or pursuant to an exemption therefrom, may not, have been registered under the Securities Act of 1933, as amended (the &#147;1933 Act&#148;). CMO residuals, whether or not registered under the 1933 Act, may be subject to
certain restrictions on transferability and may be deemed &#147;illiquid.&#148;. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><B><I>Adjustable Rate Mortgage Backed
Securities.</I></B> Adjustable rate mortgage-backed securities (&#147;ARMBSs&#148;) have interest rates that reset at periodic intervals. Acquiring ARMBSs permits the </P>
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Fund to participate in increases in prevailing current interest rates through periodic adjustments in the coupons of mortgages underlying the pool on which ARMBSs are based. Such ARMBSs generally
have higher current yield and lower price fluctuations than is the case with more traditional fixed income debt securities of comparable rating and maturity. In addition, when prepayments of principal are made on the underlying mortgages during
periods of rising interest rates, the Fund can reinvest the proceeds of such prepayments at rates higher than those at which they were previously invested. Mortgages underlying most ARMBSs, however, have limits on the allowable annual or lifetime
increases that can be made in the interest rate that the mortgagor pays. Therefore, if current interest rates rise above such limits over the period of the limitation, the Fund, when holding an ARMBS, does not benefit from further increases in
interest rates. Moreover, when interest rates are in excess of coupon rates (i.e., the rates being paid by mortgagors) of the mortgages, ARMBSs behave more like fixed income securities and less like adjustable rate securities and are subject to the
risks associated with fixed income securities. In addition, during periods of rising interest rates, increases in the coupon rate of adjustable rate mortgages generally lag current market interest rates slightly, thereby creating the potential for
capital depreciation on such securities. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><B><I>Stripped Mortgage-Backed Securities</I></B><B>.</B> SMBSs are derivative multi-class
mortgage securities. SMBSs may be issued by agencies or instrumentalities of the U.S. Government, or by private originators of, or investors in, mortgage loans, including savings and loan associations, mortgage banks, commercial banks, investment
banks and special purpose entities of the foregoing. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">SMBSs are usually structured with two classes that receive different proportions of
the interest and principal distributions on a pool of mortgage assets. A common type of SMBS will have one class receiving some of the interest and most of the principal from the mortgage assets, while the other class will receive most of the
interest and the remainder of the principal. In the most extreme case, one class will receive all of the interest (the &#147;IO&#148; class), while the other class will receive all of the principal (the &#147;PO&#148; class). The yield to maturity
on an IO class is extremely sensitive to the rate of principal payments (including prepayments) on the related underlying mortgage assets, and a rapid rate of principal payments may have a material adverse effect on the Fund&#146;s yield to maturity
from these securities. If the underlying mortgage assets experience greater than anticipated prepayments of principal, the Fund may fail to recoup some or all of its initial investment in these securities even if the security is in one of the
highest rating categories. SMBSs may be deemed &#147;illiquid.&#148; </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><B><I>Other Mortgage-Related Securities.</I></B> Other
mortgage-related securities include securities other than those described above that directly or indirectly represent a participation in, or are secured by and payable from, mortgage loans on real property, including mortgage dollar rolls, CMO
residuals or SMBSs. Other mortgage-related securities may be equity or debt securities issued by agencies or instrumentalities of the U.S. Government or by private originators of, or investors in, mortgage loans, including savings and loan
associations, homebuilders, mortgage banks, commercial banks, investment banks, partnerships, trusts and special purpose entities of the foregoing. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Mortgage-related securities include, among other things, securities that reflect an interest in reverse mortgages. In a reverse mortgage, a
lender makes a loan to a homeowner based on the homeowner&#146;s equity in his or her home. While a homeowner must be age 62 or older to qualify for a reverse mortgage, reverse mortgages may have no income restrictions. Repayment of the interest or
principal for the loan is generally not required until the homeowner dies, sells the home, or ceases to use the home as his or her primary residence. </P>
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  <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">There are three general types of reverse mortgages: (1)&nbsp;single-purpose reverse
mortgages, which are offered by certain state and local government agencies and nonprofit organizations; (2)&nbsp;federally-insured reverse mortgages, which are backed by the U. S. Department of Housing and Urban Development; and
(3)&nbsp;proprietary reverse mortgages, which are privately offered loans. A mortgage-related security may be backed by a single type of reverse mortgage. Reverse mortgage-related securities include agency and privately issued mortgage-related
securities. The principal government guarantor of reverse mortgage-related securities is GNMA. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Reverse mortgage-related securities may be
subject to risks different than other types of mortgage-related securities due to the unique nature of the underlying loans. The date of repayment for such loans is uncertain and may occur sooner or later than anticipated. The timing of payments for
the corresponding mortgage-related security may be uncertain. Because reverse mortgages are offered only to persons 62 and older and there may be no income restrictions, the loans may react differently than traditional home loans to market events.
Additionally, there can be no assurance that service providers to reverse mortgage trusts (RMTs) will diligently and appropriately execute their duties with respect to servicing such trusts. As a result, investors (which may include the Fund) in
notes issued by RMTs may be deprived of payments to which they are entitled. This could result in losses to the Fund. Investors, including the Fund, may determine to pursue negotiations or legal claims or otherwise seek compensation from RMT service
providers in certain instances. This may involve the Fund incurring costs and expenses associated with such actions. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><B><I>Asset-Backed Securities</I></B><I>.</I> The Fund may invest in, or have exposure to, ABS, which are securities that represent a
participation in, or are secured by and payable from, a stream of payments generated by particular assets, most often a pool or pools of similar assets (e.g., trade receivables). The credit quality of these securities depends primarily upon the
quality of the underlying assets and the level of credit support and/or enhancement provided. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The underlying assets (e.g<I>.</I>, loans)
are subject to prepayments that shorten the securities&#146; weighted average maturity and may lower their return. If the credit support or enhancement is exhausted, losses or delays in payment may result if the required payments of principal and
interest are not made. The value of these securities also may change because of changes in the market&#146;s perception of the creditworthiness of the servicing agent for the pool, the originator of the pool, or the financial institution or trust
providing the credit support or enhancement. Typically, there is no perfected security interest in the collateral that relates to the financial assets that support ABS. Asset-backed securities have many of the same characteristics and risks as the
mortgage backed securities described above. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund may purchase or have exposure to commercial paper, including asset-backed commercial
paper (&#147;ABCP&#148;), that is issued by structured investment vehicles or other conduits. These conduits may be sponsored by mortgage companies, investment banking firms, finance companies, hedge funds, private equity firms and special purpose
finance entities. ABCP typically refers to a short-term debt security, the payment of which is supported by cash flows from underlying assets, or one or more liquidity or credit support providers, or both. Assets backing ABCP include credit card,
car loan and other consumer receivables and home or commercial mortgages, including subprime mortgages. The repayment of ABCP issued by a conduit depends </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">16 </P>


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primarily on the cash collections received from the conduit&#146;s underlying asset portfolio and the conduit&#146;s ability to issue new ABCP. Therefore, there could be losses to the Fund if
investing in ABCP in the event of credit or market value deterioration in the conduit&#146;s underlying portfolio, mismatches in the timing of the cash flows of the underlying asset interests and the repayment obligations of maturing ABCP, or the
conduit&#146;s inability to issue new ABCP. To protect investors from these risks, ABCP programs may be structured with various protections, such as credit enhancement, liquidity support, and commercial paper stop-issuance and wind-down triggers.
However, there can be no guarantee that these protections will be sufficient to prevent losses to investors in ABCP. Some ABCP programs provide for an extension of the maturity date of the ABCP if, on the related maturity date, the conduit is unable
to access sufficient liquidity through the issue of additional ABCP. This may delay the sale of the underlying collateral and the Fund may incur a loss if the value of the collateral deteriorates during the extension period. Alternatively, if
collateral for ABCP deteriorates in value, the collateral may be required to be sold at inopportune times or at prices insufficient to repay the principal and interest on the ABCP. ABCP programs may provide for the issuance of subordinated notes as
an additional form of credit enhancement. The subordinated notes are typically of a lower credit quality and have a higher risk of default. To the extent the Fund purchases these subordinated notes, it will have a higher likelihood of loss than
investors in the senior notes. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Some ABS, particularly home equity loan transactions, are subject to interest-rate risk and prepayment
risk. A change in interest rates can affect the pace of payments on the underlying loans, which in turn, affects total return on the securities. Asset-backed securities also carry credit or default risk. If many borrowers on the underlying loans
default, losses could exceed the credit enhancement level and result in losses to investors in an Asset-backed securities transaction. Finally, ABS have structure risk due to a unique characteristic known as early amortization, or early payout,
risk. Built into the structure of most ABS are triggers for early payout, designed to protect investors from losses. These triggers are unique to each transaction and can include: a big rise in defaults on the underlying loans, a sharp drop in the
credit enhancement level, or even the bankruptcy of the originator. Once early amortization begins, all incoming loan payments (after expenses are paid) are used to pay investors as quickly as possible based upon a predetermined priority of payment.
</P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><B><I>Collateralized Bond Obligations, Collateralized Loan Obligations and Other Collateralized Debt Obligations.</I></B> The Fund
may invest in each of CBOs, CLOs, other CDOs and other similarly structured securities. CBOs, CLOs and other CDOs are types of asset-backed securities. A CBO is a trust that is often backed by a diversified pool of high risk, below investment grade
fixed income securities. The collateral can be from many different types of fixed-income securities such as high-yield debt, residential privately issued mortgage-related securities, commercial privately issued mortgage-related securities, trust
preferred securities and emerging market debt. A CLO is a trust typically collateralized by a pool of loans, which may include, among others, domestic and foreign senior secured loans, senior unsecured loans and subordinate corporate loans,
including loans that may be rated below investment grade or equivalent unrated loans. Other CDOs are trusts backed by other types of assets representing obligations of various parties. CBOs, CLOs and other CDOs may charge management fees and
administrative expenses. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">For CBOs, CLOs and other CDOs, the cash flows from the trust are split into two or more portions, called
tranches, varying in risk and yield. The riskiest portion is the &#147;equity&#148; tranche which bears the bulk of defaults from the bonds or loans in the trust and serves to protect the other, more senior tranches from default in all but the most
severe circumstances. Since it is partially </P>
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protected from defaults, a senior tranche from a CBO trust, CLO trust or trust of another CDO typically have higher ratings and lower yields than their underlying securities, and can be rated
investment grade. Despite the protection from the equity tranche, CBO, CLO or other CDO tranches can experience substantial losses due to actual defaults, downgrades of the underlying collateral by rating agencies, forced liquidation of the
collateral pool due to a failure of coverage tests, increased sensitivity to defaults due to collateral default and disappearance of protecting tranches, market anticipation of defaults, as well as aversion to CBO, CLO or other CDO securities as a
class. Interest on certain tranches of a CDO may be paid in kind or deferred and capitalized (paid in the form of obligations of the same type rather than cash), which involves continued exposure to default risk with respect to such payments. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The risks of an investment in a CBO, CLO or other CDO depend largely on the type of the collateral securities and the class of the instrument
in which the Fund invests. Normally, CBOs, CLOs and other CDOs are privately offered and sold, and thus, are not registered under the securities laws. As a result, investments in CBOs, CLOs and other CDOs may be characterized by the Fund as illiquid
securities. However an active dealer market may exist for CBOs, CLOs and other CDOs allowing them to qualify for Rule 144A transactions. In addition to the normal risks associated with fixed income securities discussed elsewhere in this Statement of
Additional Information and the Prospectus (e.g., prepayment risk, credit risk, liquidity risk, market risk, structural risk, legal risk and interest rate risk (which may be exacerbated if the interest rate payable on a structured financing changes
based on multiples of changes in interest rates or inversely to changes in interest rates) and default risk), CBOs, CLOs and other CDOs carry additional risks including, but are not limited to: (i)&nbsp;the possibility that distributions from
collateral securities will not be adequate to make interest or other payments; (ii)&nbsp;the quality of the collateral may decline in value or default; (iii)&nbsp;the risk that the Fund may invest in CBOs, CLOs or other CDOs that are subordinate to
other classes; (iv)&nbsp;the complex structure of the security may not be fully understood at the time of investment and may produce disputes with the issuer or unexpected investment results; (v)&nbsp;the investment return achieved by the Fund could
be significantly different than those predicted by financial models; (vi)&nbsp;the lack of a readily available secondary market for CDOs; (vii)&nbsp;risk of forced &#147;fire sale&#148; liquidation due to technical defaults such as coverage test
failures; and (viii)&nbsp;the CDO&#146;s manager may perform poorly. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><B><I>Other Asset-Backed Securities.</I></B> Similarly, PIMCO
expects that other asset-backed securities (unrelated to mortgage loans) will be offered to investors in the future and may be purchased by the Fund. Several types of asset-backed securities have already been offered to investors, including Enhanced
Equipment Trust Certificates (&#147;EETCs&#148;) and Certificates for Automobile Receivables<SUP STYLE="font-size:85%; vertical-align:top">SM</SUP> (&#147;CARS<SUP STYLE="font-size:85%; vertical-align:top">SM</SUP>&#148;).<B><I> </I></B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">EETCs are typically issued by specially-created trusts established by airlines, railroads, or other transportation corporations. The proceeds
of EETCs are used to purchase equipment, such as airplanes, railroad cars, or other equipment, which in turn serve as collateral for the related issue of the EETCs. The equipment generally is leased by the airline, railroad or other corporation,
which makes rental payments to provide the projected cash flow for payments to EETC holders. Holders of EETCs must look to the collateral securing the certificates, typically together with a guarantee provided by the lessee corporation or its parent
company for the payment of lease obligations, in the case of default in the payment of principal and interest on the EETCs. However, because principal and interest payments on EETCs are funded in the ordinary course by the lessee corporation, the
Fund treats EETCs as corporate bonds/obligations for purposes of compliance testing and related classifications. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">18 </P>


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CARS<SUP STYLE="font-size:85%; vertical-align:top">SM</SUP> represent undivided fractional interests in a trust whose assets consist of a pool of motor vehicle retail installment sales contracts
and security interests in the vehicles securing the contracts. Payments of principal and interest on CARS<SUP STYLE="font-size:85%; vertical-align:top">SM</SUP> are passed through monthly to certificate holders, and are guaranteed up to certain
amounts and for a certain time period by a letter of credit issued by a financial institution unaffiliated with the trustee or originator of the trust. An investor&#146;s return on CARS<SUP STYLE="font-size:85%; vertical-align:top">SM</SUP> may be
affected by early prepayment of principal on the underlying vehicle sales contracts. If the letter of credit is exhausted, the trust may be prevented from realizing the full amount due on a sales contract because of state law requirements and
restrictions relating to foreclosure sales of vehicles and the obtaining of deficiency judgments following such sales or because of depreciation, damage or loss of a vehicle, the application of federal and state bankruptcy and insolvency laws, or
other factors. As a result, certificate holders may experience delays in payments or losses if the letter of credit is exhausted. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Consistent with the Fund&#146;s investment objectives and policies, PIMCO also may invest in other types of asset-backed and related
securities (such as credit card receivables or student loans). Other asset-backed securities may be collateralized by the fees earned by service providers. The value of asset-backed securities may be substantially dependent on the servicing of the
underlying asset pools and are therefore subject to risks associated with the negligence by, or defalcation of, their servicers. In certain circumstances, the mishandling of related documentation may also affect the rights of the security holders in
and to the underlying collateral. The insolvency of entities that generate receivables or that utilize the assets may result in added costs and delays in addition to losses associated with a decline in the value of the underlying assets. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Investors should note that Congress from time to time may consider actions that would limit or remove the explicit or implicit guarantee of
the payment of principal and/or interest on many types of asset-backed securities. Any such action would likely adversely impact the value of such securities. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Real Estate Assets and Related Derivatives </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund may generally gain exposure to the real estate sector by investing in real-estate linked derivatives, real estate investment trusts
(&#147;REITs&#148;) and common, preferred and convertible securities of issuers in real estate-related industries. The Fund may also invest in loans or other investments secured by real estate and may, as a result of default, foreclosure or
otherwise, take possession of and hold real estate as a direct owner (see &#147;Loans and Other Indebtedness; Loan Participations and Assignments&#148; below). Each of these types of investments are subject, directly or indirectly, to risks
associated with ownership of real estate, including changes in the general economic climate or local conditions (such as an oversupply of space or a reduction in demand for space), loss to casualty or condemnation, increases in property taxes and
operating expenses, zoning law amendments, changes in interest rates, overbuilding and increased competition, including competition based on rental rates, variations in market value, changes in the financial condition of tenants, changes in
operating costs, attractiveness and location of the properties, adverse changes in the real estate markets generally or in specific sectors of the real estate industry and possible environmental liabilities. Real estate-related investments may
entail leverage and may be highly volatile. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">REITs are pooled investment vehicles that own, and typically operate, income-producing
real estate. If a REIT meets certain requirements, including distributing to shareholders substantially </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">19 </P>


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all of its taxable income (other than net capital gains), then it is not generally taxed on the income distributed to shareholders. REITs are subject to management fees and other expenses, and so
the Fund would bear its proportionate share of the costs of the REITs&#146; operations if it invests in REITs. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">There are three
general categories of REITs: Equity REITs, Mortgage REITs and Hybrid REITs. Equity REITs invest primarily in direct fee ownership or leasehold ownership of real property; they derive most of their income from rents. Mortgage REITs invest mostly in
mortgages on real estate, which may secure construction, development or long-term loans, and the main source of their income is mortgage interest payments. Hybrid REITs hold both ownership and mortgage interests in real estate. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Along with the risks common to different types of real estate related securities, REITs, no matter the type, involve additional risk factors.
These include poor performance by the REIT&#146;s manager, adverse changes to the tax laws, and failure by the REIT to qualify for tax-free distribution of income or exemption under the 1940 Act or tax-free pass-through of income under the Internal
Revenue Code of 1986, as amended (the &#147;Code&#148;). In addition, some REITS have limited diversification because they invest in a limited number of properties, a narrow geographic area, or a single type of property. Also, the organizational
documents of a REIT may contain provisions that make changes in control of the REIT difficult and time-consuming. Finally, private REITs are not traded on a national securities exchange. As such, these products are generally illiquid. This reduces
the ability of the Fund to redeem its investment early. Private REITS are also generally harder to value and may bear higher fees than public REITs. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Some of the REITs in which the Fund may invest may be permitted to hold senior or residual interests in real estate mortgage investment
conduits (&#147;REMICs&#148;) or debt or equity interests in taxable mortgage pools (&#147;TMPs&#148;). The Fund may also hold interests in &#147;Re-REMICs&#148;, which are interests in securitizations formed by the contribution of asset backed or
other similar securities into a trust which then issues securities in various tranches. The Fund may participate in the creation of a Re-REMIC by contributing assets to the trust and receiving junior and/or senior securities in return. An interest
in a Re-REMIC security may be riskier than the securities originally held by and contributed to the trust, and the holders of the Re-REMIC securities will bear the costs associated with the securitization. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Foreign (Non-U.S.) Securities </B></P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The
Fund may invest without limit in instruments of corporate and other foreign (non-U.S.) issuers, and in instruments traded principally outside of the United States. The Fund may invest in sovereign and other debt securities issued by foreign
governments and their respective sub-divisions, agencies or instrumentalities, government sponsored enterprises and supranational government entities. The Fund may also invest directly in foreign currencies, including local emerging market
currencies. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The foreign securities in which the Fund may invest include without limit Eurodollar obligations and &#147;Yankee
Dollar&#148; obligations. Eurodollar obligations are U.S. dollar-denominated certificates of deposit and time deposits issued outside the U.S. capital markets by foreign branches of U.S. banks and by foreign banks. Yankee Dollar obligations are U.S.
dollar-denominated obligations issued in the U.S. capital markets by foreign banks. Eurodollar and Yankee Dollar obligations are generally subject to the same risks that apply to domestic debt issues, notably credit risk, interest
</P>
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rate risk, market risk and liquidity risk. Additionally, Eurodollar (and to a limited extent, Yankee Dollar) obligations are subject to certain sovereign risks. One such risk is the possibility
that a sovereign country might prevent capital, in the form of U.S. dollars, from flowing across its borders. Other risks include adverse political and economic developments; the extent and quality of government regulation of financial markets and
institutions; the imposition of foreign withholding or other taxes; and the expropriation or nationalization of foreign issuers. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The
Fund may also invest in American Depositary Receipts (&#147;ADRs&#148;), European Depositary Receipts (&#147;EDRs&#148;) or Global Depositary Receipts (&#147;GDRs&#148;). ADRs are U.S. dollar-denominated receipts issued generally by domestic banks
and represent the deposit with the bank of a security of a non-U.S. issuer. EDRs are foreign currency-denominated receipts similar to ADRs and are issued and traded in Europe, and are publicly traded on exchanges or over-the-counter
(&#147;OTC&#148;) in the United States. GDRs may be offered privately in the United States and also trade in public or private markets in other countries. ADRs, EDRs and GDRs may be issued as sponsored or unsponsored programs. In sponsored programs,
an issuer has made arrangements to have its securities trade in the form of ADRs, EDRs or GDRs. In unsponsored programs, the issuer may not be directly involved in the creation of the program. Although regulatory requirements with respect to
sponsored and unsponsored programs are generally similar, in some cases it may be easier to obtain financial information from an issuer that has participated in the creation of a sponsored program. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Investing in non-U.S. securities involves special risks and considerations not typically associated with investing in U.S. securities. These
include: differences in accounting, auditing and financial reporting standards, generally higher commission rates on non-U.S. portfolio transactions, the possibility of expropriation or confiscatory taxation, adverse changes in investment or
exchange control regulations (which may include suspension of the ability to transfer currency from a country), market disruption, the possibility of security suspensions, political instability which can affect U.S. investments in non-U.S. countries
and potential restrictions on the flow of international capital. In addition, foreign securities and the Fund&#146;s income in respect of those securities may be subject to foreign taxes, including taxes withheld from payments on those securities,
which would reduce the Fund&#146;s return on such securities. Non-U.S. securities often trade with less frequency and volume than domestic securities and therefore may exhibit greater price volatility. Changes in foreign exchange rates will affect
the value of those securities that are denominated or quoted in currencies other than the U.S. dollar. The currencies of non-U.S. countries may experience significant declines against the U.S. dollar, and devaluation may occur subsequent to
investments in these currencies by the Fund. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Investment in sovereign debt can involve a high degree of risk. The governmental entity that
controls the repayment of sovereign debt may not be able or willing to repay the principal and/or interest when due in accordance with the terms of the debt. A governmental entity&#146;s willingness or ability to repay principal and interest due in
a timely manner may be affected by, among other factors, its cash flow situation, the extent of its foreign reserves, the availability of sufficient foreign exchange on the date a payment is due, the relative size of the debt service burden to the
economy as a whole, the governmental entity&#146;s policy toward the International Monetary Fund, and the political constraints to which a governmental entity may be subject. Governmental entities may also depend on expected disbursements from
foreign governments, multilateral agencies and others to reduce principal and interest arrearages on their debt. The commitment on the part of these governments, agencies and others to make such disbursements may be conditioned on a governmental
entity&#146;s implementation of economic reforms and/or economic performance and the </P>
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timely service of such debtor&#146;s obligations. Failure to implement such reforms, achieve such levels of economic performance or repay principal or interest when due may result in the
cancellation of such third parties&#146; commitments to lend funds to the governmental entity, which may further impair such debtor&#146;s ability or willingness to service its debts in a timely manner. Consequently, governmental entities may
default on their sovereign debt. Holders of sovereign debt (including the Fund) may be requested to participate in the rescheduling of such debt and to extend further loans to governmental entities. There is no bankruptcy proceeding by which
sovereign debt on which governmental entities have defaulted may be collected in whole or in part. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The investments in foreign currency
denominated debt obligations and hedging activities by the Fund will likely produce a difference between the Fund&#146;s book income and its taxable income. This difference may cause a portion of the Fund&#146;s income distributions to constitute
returns of capital for tax purposes or require the Fund to make distributions exceeding book income to qualify as a regulated investment company for U.S. federal tax purposes. The Fund&#146;s investments in non-U.S. securities may increase or
accelerate the amount of ordinary income recognized by shareholders. See &#147;Taxation.&#148; </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><B><I>Euro- and EU-related risks.</I></B>
The global economic crisis brought several small economies in Europe to the brink of bankruptcy and many other economies into recession and weakened the banking and financial sectors of many European countries. For example, the governments of
Greece, Spain, Portugal, and the Republic of Ireland have all experienced large public budget deficits, the effects of which are still yet unknown and may slow the overall recovery of the European economies from the global economic crisis. In
addition, due to large public deficits, some European countries may be dependent on assistance from other European governments and institutions or other central banks or supranational agencies such as the International Monetary Fund. Assistance may
be dependent on a country&#146;s implementation of reforms or reaching a certain level of performance. Failure to reach those objectives or an insufficient level of assistance could result in a deep economic downturn which could significantly affect
the value of the Fund&#146;s European investments. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Economic and Monetary Union of the European Union (&#147;EMU&#148;) is comprised
of the European Union (&#147;EU&#148;) members that have adopted the euro currency. By adopting the euro as its currency, a member state relinquishes control of its own monetary policies. As a result, European countries are significantly affected by
fiscal and monetary policies implemented by the EMU and European Central Bank. The euro currency may not fully reflect the strengths and weaknesses of the various economies that comprise the EMU and Europe generally. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">It is possible that one or more EMU member countries could abandon the euro and return to a national currency and/or that the euro will cease
to exist as a single currency in its current form. The effects of such an abandonment or a country&#146;s forced expulsion from the euro on that country, the rest of the EMU, and global markets are impossible to predict, but are likely to be
negative. The exit of any country out of the euro may have an extremely destabilizing effect on other Eurozone countries and their economies and a negative effect on the global economy as a whole. Such an exit by one country may also increase the
possibility that additional countries may exit the euro should they face similar financial difficulties. In addition, in the event of one or more countries&#146; exit from the euro, it may be difficult to value investments denominated in euros or in
a replacement currency. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund may face potential risks associated with the referendum on the United Kingdom&#146;s
continued membership in the EU, which resulted in a vote for the United Kingdom to leave the EU. The vote to leave the EU may result in substantial volatility in foreign exchange markets and may lead to a sustained weakness in the British
pound&#146;s exchange rate against the United States dollar, the euro and other currencies, which may impact Fund returns. The vote to leave the EU may result in a sustained period of market uncertainty, as the United Kingdom seeks to negotiate the
terms of its exit. It may also destabilize some or all of the other EU member countries and/or the Eurozone. These developments could result in losses to the Fund, as there may be negative effects on the value of Fund&#146;s investments and/or on
Fund&#146;s ability to enter into certain transactions or value certain investments, and these developments may make it more difficult for the Fund to exit certain investments at an advantageous time or price. Such events could result from, among
other things, increased uncertainty and volatility in the United Kingdom, the EU and other financial markets; fluctuations in asset values; fluctuations in exchange rates; decreased liquidity of investments located, traded or listed within the
United Kingdom, the EU or elsewhere; changes in the willingness or ability of financial and other counterparties to enter into transactions or the price and terms on which other counterparties are willing to transact; and/or changes in legal and
regulatory regimes to which Fund investments are or become subject. Any of these events, as well as an exit or expulsion of an EU member state other than the United Kingdom from the EU, could negatively impact Fund returns. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><B><I>Investments in Russia.</I></B> The Fund may invest in securities and instruments that are economically tied to Russia. In addition to
the risks listed above under &#147;Foreign (Non-U.S.) Securities,&#148; investing in Russia presents additional risks. In particular, investments in Russia are subject to various risks such as 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, and unpredictable taxation. Investments in Russia are particularly subject
to the risk that economic sanctions may be imposed by the United States and/or other countries. Such sanctions &#151; which may impact companies in many sectors, including energy, financial services and defense, among others &#151; may negatively
impact the Fund&#146;s performance and/or ability to achieve its investment objectives. The Russian securities market is characterized by limited volume of trading, resulting in difficulty in obtaining accurate prices. 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 because of registration systems that may not be subject to effective government supervision. This may result in significant delays or problems in registering the transfer of securities.
Russian securities laws may not recognize foreign nominee accounts held with a custodian bank, and therefore the custodian may be considered the ultimate owner of securities they hold for their clients. Ownership of securities issued by Russian
companies is recorded by companies themselves and by registrars instead of through a central registration system. It is possible that the ownership rights of the Fund could be lost through fraud or negligence. While applicable Russian regulations
impose liability on registrars for losses resulting from their errors, it may be difficult for the Fund to enforce any rights it may have against the registrar or issuer of the securities in the event of loss of share registration. Adverse currency
exchange rates are a risk and there may be a lack of available currency hedging instruments. Investments in Russia may be subject to the risk of nationalization or expropriation of assets. Oil, natural gas, metals, and timber account for a
significant portion of Russia&#146;s exports, leaving the country vulnerable to swings in world prices. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Emerging Market Securities </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund may invest without limit in investment grade sovereign debt denominated in the relevant country&#146;s local currency with less than
1 year remaining to maturity (&#147;short-term investment grade sovereign debt&#148;), including short-term investment grade sovereign debt issued by emerging market issuers. The Fund may invest up to 40% of its total assets in securities and
instruments that are economically tied to &#147;emerging market&#148; countries, other than investments in short-term investment grade sovereign debt issued by emerging market issuers, where as noted above there is no limit. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">PIMCO considers an instrument to be economically tied to an emerging market security if the security&#146;s &#147;country of exposure&#148; is
an emerging market country, as determined by the criteria set forth below. Alternatively, such as when a &#147;country of exposure&#148; is not available or when PIMCO believes the following tests more accurately reflect which country the security
is economically tied to, PIMCO may consider an instrument to be economically tied to an emerging market country if the issuer or guarantor is a government of an emerging market country (or any political subdivision, agency, authority or
instrumentality of such government), if the issuer or guarantor is organized under the laws of an emerging market country, or if the currency of settlement of the security is a currency of an emerging market country. 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 indexes of such currencies), or instruments or
securities that are issued or guaranteed by governments of emerging market countries or by entities organized under the laws of emerging market countries or if an instrument&#146;s &#147;country of exposure&#148; is an emerging market country. A
security&#146;s &#147;country of exposure&#148; is determined by PIMCO using certain factors provided by a third-party analytical service provider. The factors are applied in order such that the first factor to result in the assignment of a country
determines the &#147;country of exposure.&#148; The factors, listed in the order in which they are applied, are: (i)&nbsp;if an asset-backed or other collateralized security, the country in which the collateral backing the security is located,
(ii)&nbsp;the &#147;country of risk&#148; of the issuer, (iii)&nbsp;if the security is guaranteed by the government of the country (or any political subdivision, agency, authority or instrumentality of such government), the country of the government
or instrumentality providing the guarantee, (iv)&nbsp;the &#147;country of risk&#148; of the issuer&#146;s ultimate parent, or (v)&nbsp;the country where the issuer is organized or incorporated under the laws thereof. &#147;Country of risk&#148; is
a separate four-part test determined by the following factors, listed in order of importance: (i)&nbsp;management location, (ii)&nbsp;country of primary listing, (iii)&nbsp;sales or revenue attributable to the country, and (iv)&nbsp;reporting
currency of the issuer. PIMCO has broad discretion to identify countries that it considers to qualify as emerging markets. In making investments in emerging market securities, the Fund emphasizes countries with relatively low gross natural product
per capital and with the potential for rapid economic growth. Emerging market countries are generally located in Asia, Africa, the Middle East, Latin America and Eastern Europe. PIMCO will select the 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, and any other specific factors it believes to be relevant. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The risks of investing in non-U.S. securities are particularly high when the issuers are tied economically to countries with developing or
&#147;emerging market&#148; economies. Countries with &#147;emerging market&#148; economies are those with securities markets that are, in the opinion of PIMCO, less sophisticated than more developed markets in terms of participation by investors,
analyst coverage, liquidity and regulation. Investing in emerging market countries involves certain risks not typically associated with investing in U.S. securities, and imposes risks greater than, or in
</P>
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addition to, risks of investing in non-U.S., developed countries. These risks include: greater risks of nationalization or expropriation of assets or confiscatory taxation; currency devaluations
and other currency exchange rate fluctuations; greater social, economic and political uncertainty and instability (including the risk of war); more substantial government involvement in the economy; less government supervision and regulation of the
securities markets and participants in those markets; controls on foreign investment and limitations on repatriation of invested capital and on the Fund&#146;s ability to exchange local currencies for U.S. dollars; unavailability of currency hedging
techniques in certain emerging market countries; the fact that companies in emerging market countries may be smaller, less seasoned and newly organized companies; the difference in, or lack of, auditing and financial reporting standards, which may
result in unavailability of material information about issuers; the risk that it may be more difficult to obtain and/or enforce a judgment in a court outside the United States; and greater price volatility, substantially less liquidity and
significantly smaller market capitalization of securities markets. In addition, a number of emerging market countries restrict, to various degrees, foreign investment in securities, and high rates of 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. Also, any change in the leadership or politics of emerging market countries, or the countries that exercise a
significant influence over those countries, may halt the expansion of or reverse the liberalization of foreign investment policies now occurring and adversely affect existing investment opportunities. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund may also invest in Brady Bonds. Brady Bonds are securities created through the exchange of existing commercial bank loans to
sovereign entities for new obligations in connection with debt restructurings under a debt restructuring plan introduced by former U.S. Secretary of the Treasury, Nicholas F. Brady (the &#147;Brady Plan&#148;). Brady Plan debt restructurings have
been implemented in a number of countries, including: Argentina, Bolivia, Brazil, Bulgaria, Costa Rica, the Dominican Republic, Ecuador, Jordan, Mexico, Niger, Nigeria, Panama, Peru, the Philippines, Poland, Uruguay, and Venezuela. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Brady Bonds may be collateralized or uncollateralized, are issued in various currencies (primarily the U.S. dollar) and are actively traded in
the OTC secondary market. Brady Bonds are not considered to be U.S. Government securities. U.S. dollar-denominated, collateralized Brady Bonds, which may be fixed rate par bonds or floating rate discount bonds, are generally collateralized in full
as to principal by U.S. Treasury zero coupon bonds having the same maturity as the Brady Bonds. Interest payments on these Brady Bonds generally are collateralized on a one-year or longer rolling-forward basis by cash or securities in an amount
that, in the case of fixed rate bonds, is equal to at least one year of interest payments or, in the case of floating rate bonds, initially is equal to at least one year&#146;s interest payments based on the applicable interest rate at that time and
is adjusted at regular intervals thereafter. Certain Brady Bonds are entitled to &#147;value recovery payments&#148; in certain circumstances, which in effect constitute supplemental interest payments but generally are not collateralized. Brady
Bonds are often viewed as having three or four valuation components: (i)&nbsp;the collateralized repayment of principal at final maturity; (ii)&nbsp;the collateralized interest payments; (iii)&nbsp;the uncollateralized interest payments; and
(iv)&nbsp;any uncollateralized repayment of principal at maturity (these uncollateralized amounts constitute the &#147;residual risk&#148;). </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Most Mexican Brady Bonds issued to date have principal repayments at final maturity fully collateralized by U.S. Treasury zero coupon bonds
(or comparable collateral denominated in other currencies) and interest coupon payments collateralized on an 18-month rolling-forward basis by </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">25 </P>


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funds held in escrow by an agent for the bondholders. A significant portion of the Venezuelan Brady Bonds and the Argentine Brady Bonds issued to date have principal repayments at final maturity
collateralized by U.S. Treasury zero coupon bonds (or comparable collateral denominated in other currencies) and/or interest coupon payments collateralized on a 14-month (for Venezuela) or 12-month (for Argentina) rolling-forward basis by securities
held by the Federal Reserve Bank of New York as collateral agent. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Brady Bonds involve various risk factors including residual risk and
the history of defaults with respect to commercial bank loans by public and private entities of countries issuing Brady Bonds. There can be no assurance that Brady Bonds in which the Fund may invest will not be subject to restructuring arrangements
or to requests for new credit, which may cause the Fund to suffer a loss of interest or principal on any of their holdings. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Foreign Currency
Transactions </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund may purchase and sell foreign currency options and foreign currency futures contracts and related options (see
&#147;&#150;Derivative Instruments&#148; below), and may engage in foreign currency transactions either on a spot (cash) basis at the rate prevailing in the currency exchange market at the time or through forward currency contracts
(&#147;forwards&#148;). The Fund may engage in these transactions in order to protect against uncertainty in the level of future foreign exchange rates in the purchase and sale of securities or because PIMCO believes a currency to which the Fund is
exposed is overvalued. The Fund may also use foreign currency options, foreign currency forward contracts, foreign currency futures and foreign spot transactions to increase exposure to a foreign currency or to shift exposure to foreign currency
fluctuations from one currency to another. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">A forward contract involves an obligation to purchase or sell a certain amount of a
specific currency at a future date, which may be any fixed number of days from the date of the contract agreed upon by the parties, at a price set at the time of the contract. These contracts may be bought or sold to protect the Fund against a
possible loss resulting from an adverse change in the relationship between foreign currencies and the U.S. dollar or to increase exposure to a particular foreign currency. Open positions in forwards used for non-hedging purposes will be covered by
the segregation with the Fund&#146;s custodian of assets determined to be liquid by PIMCO in accordance with procedures approved by the Board of Trustees, and are marked to market daily. Although forwards may be used to minimize the risk of loss due
to a decline in the value of the hedged currencies, at the same time, they tend to limit any potential gain which might result should the value of such currencies increase. Forwards are used primarily to adjust the foreign exchange exposure of the
Fund with a view to protecting the outlook, and the Fund might be expected to enter into such contracts under the following circumstances: </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><B><I>Lock In. </I></B>When PIMCO desires to lock in the U.S. dollar price on the purchase or sale of a security denominated in a foreign
currency. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><B><I>Cross Hedge. </I></B>If a particular currency is expected to decrease against another currency, the Fund may sell the
currency expected to decrease and purchase a currency which is expected to increase against the currency sold in an amount approximately equal to some or all of the Fund&#146;s exposure to the currency sold. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><B><I>Direct Hedge. </I></B>If PIMCO wants to eliminate substantially all of the risk of owning a particular currency, and/or if PIMCO thinks
that the Fund can benefit from price appreciation in a given </P>
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country&#146;s bonds but does not want to hold the currency, it may employ a direct hedge back into the U.S. dollar. In either case, the Fund would enter into a forward contract to sell the
currency to which the Fund is exposed through the security and purchase U.S. dollars at an exchange rate established at the time it initiated the contract. The cost of the direct hedge transaction may offset most, if not all, of the yield advantage
offered by the foreign security, but the Fund would hope to benefit from an increase (if any) in the value of the security. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><B><I>Proxy
Hedge.</I></B> The Fund might choose to use a proxy hedge, which may be less costly than a direct hedge. In this case, the Fund, having purchased a security, will sell a currency whose value is believed to be closely linked to the currency to which
the Fund is exposed through the security. Interest rates prevailing in the country whose currency was sold would be expected to be closer to those in the United States and lower than those of securities denominated in the currency of the original
holding. This type of hedging entails greater risk than a direct hedge because it is dependent on a stable relationship between the two currencies paired as proxies and the relationships can be very unstable at times. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><B><I>Costs of Hedging.</I></B> When the Fund purchases a foreign (non-U.S.) bond with a higher interest rate than is available on U.S. bonds
of a similar maturity, the additional yield on the foreign (non-U.S.) bond could be substantially reduced or lost if the Fund were to enter into a direct hedge by selling the foreign currency and purchasing the U.S. dollar. This is what is known as
the &#147;cost&#148; of hedging. Proxy hedging attempts to reduce this cost through an indirect hedge back to the U.S. dollar. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">It is
important to note that hedging costs are treated as capital transactions and are not, therefore, deducted from the Fund&#146;s dividend distribution and are not reflected in its yield. Instead such costs will, over time, be reflected in the
Fund&#146;s net asset value per share. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund may enter into foreign currency transactions as a substitute for cash investments and for
other investment purposes not involving hedging, including, without limitation, to exchange payments received in a foreign currency into U.S. dollars or in anticipation of settling a transaction that requires the Fund to deliver a foreign currency.
</P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The forecasting of currency market movement is extremely difficult, and whether any hedging strategy will be successful is highly
uncertain. Moreover, it is impossible to forecast with precision the market value of portfolio securities at the expiration of a foreign currency forward contract. Accordingly, the Fund may be required to buy or sell additional currency on the spot
market (and bear the expense of such transaction) if PIMCO&#146;s predictions regarding the movement of foreign currency or securities markets prove inaccurate. Also, foreign currency transactions, like currency exchange rates, can be affected
unpredictably by intervention (or the failure to intervene) by U.S. or foreign governments or central banks, or by currency controls or political developments. Such events may prevent or restrict the Fund&#146;s ability to enter into foreign
currency transactions, force the Fund to exit a foreign currency transaction at a disadvantageous time or price or result in penalties for the Fund, any of which may result in a loss to the Fund. In addition, the use of cross-hedging transactions
may involve special risks, and may leave the Fund in a less advantageous position than if such a hedge had not been established. Because foreign currency forward contracts are privately negotiated transactions, there can be no assurance that the
Fund will have flexibility to roll-over a foreign currency forward contract upon its expiration if it desires to do so. Additionally, there can be no assurance that the other party to the contract will perform its services thereunder. Under
definitions adopted by the U.S. Commodity Futures Trading </P>
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Commission (the &#147;CFTC&#148;) and the SEC, many non-deliverable foreign currency forwards are considered swaps for certain purposes, including determination of whether such instruments need
to be exchange-traded and centrally cleared as discussed further in &#147;Risks of Potential Government Regulation of Derivatives&#148; and &#147;Additional Risk Factors in Cleared Derivatives Transactions.&#148; These changes are expected to reduce
counterparty risk as compared to bi-laterally negotiated contracts. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund may hold a portion of its assets in bank deposits
denominated in foreign currencies, so as to facilitate investment in foreign securities as well as to protect against currency fluctuations and the need to convert such assets into U.S. dollars (thereby also reducing transaction costs). To the
extent these monies are converted back into U.S. dollars, the value of the assets so maintained will be affected favorably or unfavorably by changes in foreign currency exchange rates and exchange control regulations. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><B><I>Tax Consequences of Hedging and other Foreign Currency Transactions.</I></B> Regulations that may be issued in the future could limit
the ability of the Fund to enter into the foreign currency transactions described above. Under applicable tax law, the Fund may be required to limit its gains from hedging in such transactions. The extent to which these limits apply is subject to
tax regulations as yet unissued. In addition, hedging may result in the application of the mark-to-market and straddle provisions of the Code. Those provisions could affect the amount, timing or character of dividends paid by the Fund, including
whether dividends paid by the Fund are classified as capital gains or ordinary income. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Foreign Currency Exchange-Related Securities </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><B><I>Foreign Currency Warrants.</I></B> Foreign currency warrants such as Currency Exchange Warrants<SUP
STYLE="font-size:85%; vertical-align:top">SM</SUP> are warrants which entitle the holder to receive from their issuer an amount of cash (generally, for warrants issued in the United States, in U.S. dollars) which is calculated pursuant to a
predetermined formula and based on the exchange rate between a specified foreign currency and the U.S. dollar as of the exercise date of the warrant. Foreign currency warrants generally are exercisable upon their issuance and expire as of a
specified date and time. Foreign currency warrants have been issued in connection with U.S. dollar-denominated debt offerings by major corporate issuers in an attempt to reduce the foreign currency exchange risk which, from the point of view of
prospective purchasers of the securities, is inherent in the international fixed income marketplace. Foreign currency warrants may attempt to reduce the foreign exchange risk assumed by purchasers of a security by, for example, providing for a
supplemental payment in the event that the U.S. dollar depreciates against the value of a major foreign currency such as the Japanese yen or the Euro. The formula used to determine the amount payable upon exercise of a foreign currency warrant may
make the warrant worthless unless the applicable foreign currency exchange rate moves in a particular direction (e.g., unless the U.S. dollar appreciates or depreciates against the particular foreign currency to which the warrant is linked or
indexed). Foreign currency warrants are severable from the debt obligations with which they may be offered, and may be listed on exchanges. Foreign currency warrants may be exercisable only in certain minimum amounts, and an investor wishing to
exercise warrants who possesses less than the minimum number required for exercise may be required either to sell the warrants or to purchase additional warrants, thereby incurring additional transaction costs. In the case of any exercise of
warrants, there may be a time delay between the time a holder of warrants gives instructions to exercise and the time the exchange rate relating to exercise is determined, during which time the exchange rate could change significantly, thereby
affecting both the market and cash settlement values of the </P>
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warrants being exercised. The expiration date of the warrants may be accelerated if the warrants should be delisted from an exchange or if their trading should be suspended permanently, which
would result in the loss of any remaining &#147;time value&#148; of the warrants (i.e., the difference between the current market value and the exercise value of the warrants), and, in the case the warrants were &#147;out-of-the-money,&#148; in a
total loss of the purchase price of the warrants. Warrants are generally unsecured obligations of their issuers and are not standardized foreign currency options issued by the Options Clearing Corporation (&#147;the OCC&#148;). Unlike foreign
currency options issued by the OCC, the terms of foreign exchange warrants generally will not be amended in the event of governmental or regulatory actions affecting exchange rates or in the event of the imposition of other regulatory controls
affecting the international currency markets. The initial public offering price of foreign currency warrants is generally considerably in excess of the price that a commercial user of foreign currencies might pay in the interbank market for a
comparable option involving significantly larger amounts of foreign currencies. Foreign currency warrants are subject to significant foreign exchange risk, including risks arising from complex political or economic factors. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><B><I>Principal Exchange Rate Linked Securities. </I></B>Principal exchange rate linked securities (&#147;PERLs<SUP
STYLE="font-size:85%; vertical-align:top">SM</SUP>&#148;) are debt obligations the principal on which is payable at maturity in an amount that may vary based on the exchange rate between the U.S. dollar and a particular foreign currency at or about
that time. The return on &#147;standard&#148; principal exchange rate linked securities is enhanced if the foreign currency to which the security is linked appreciates against the U.S. dollar, and is adversely affected by increases in the foreign
exchange value of the U.S. dollar; &#147;reverse&#148; principal exchange rate linked securities are like &#147;standard&#148; securities, except that their return is enhanced by increases in the value of the U.S. dollar and adversely impacted by
increases in the value of foreign currency. Interest payments on the securities are generally made in U.S. dollars at rates that reflect the degree of foreign currency risk assumed or given up by the purchaser of the notes (i.e., at relatively
higher interest rates if the purchaser has assumed some of the foreign exchange risk, or relatively lower interest rates if the issuer has assumed some of the foreign exchange risk, based on the expectations of the current market). PERLs may in
limited cases be subject to acceleration of maturity (generally, not without the consent of the holders of the securities), which may have an adverse impact on the value of the principal payment to be made at maturity. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><B><I>Performance Indexed Paper.</I></B> Performance indexed paper is U.S. dollar-denominated commercial paper the yield of which is linked to
certain foreign exchange rate movements. The yield to the investor on performance indexed paper is established at maturity as a function of spot exchange rates between the U.S. dollar and a designated currency as of or about that time (generally,
the index maturity two days prior to maturity). The yield to the investor will be within a range stipulated at the time of purchase of the obligation, generally with a guaranteed minimum rate of return that is below, and a potential maximum rate of
return that is above, market yields on U.S. dollar-denominated commercial paper, with both the minimum and maximum rates of return on the investment corresponding to the minimum and maximum values of the spot exchange rate two business days prior to
maturity. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>U.S. Government Securities </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">U.S. Government securities are obligations of, and, in certain cases, guaranteed by, the U.S. Government, its agencies or instrumentalities.
The U.S. Government does not guarantee the net asset value of the Fund&#146;s shares. U.S. Government securities are subject to market and interest rate </P>
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risk, and may be subject to varying degrees of credit risk. Some U.S. Government securities, such as Treasury bills, notes and bonds, and securities guaranteed by GNMA, are supported by the full
faith and credit of the United States; others, such as those of the Federal Home Loan Banks, are supported by the right of the issuer to borrow from the U.S. Treasury; others, such as those of the FNMA, are supported by the discretionary authority
of the U.S. Government to purchase the agency&#146;s obligations; and still others, such as securities issued by members of the Farm Credit System, are supported only by the credit of the agency, instrumentality or corporation. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Securities issued by U.S. Government agencies or government-sponsored enterprises may not be guaranteed by the U.S. Treasury. GNMA, a wholly
owned U.S. Government corporation, is authorized to guarantee, with the full faith and credit of the U.S. Government, the timely payment of principal and interest on securities issued by institutions approved by GNMA and backed by pools of mortgages
insured by the Federal Housing Administration or guaranteed by the VA. Government-related guarantors (i.e., not backed by the full faith and credit of the U.S. Government) include the FNMA and the Federal Home Loan Mortgage Corporation
(&#147;FHLMC&#148;). Pass-through securities issued by FNMA are guaranteed as to timely payment of principal and interest by FNMA but are not backed by the full faith and credit of the U.S. Government. FHLMC guarantees the timely payment of interest
and ultimate collection of principal, but its participation certificates are not backed by the full faith and credit of the U.S. Government. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">U.S. Government securities include securities that have no coupons, or have been stripped of their unmatured interest coupons, individual
interest coupons from such securities that trade separately, and evidences of receipt of such securities. Such securities may pay no cash income, and are purchased at a deep discount from their value at maturity. Because interest on zero coupon
securities is not distributed on a current basis but is, in effect, compounded, zero coupon securities tend to be subject to greater risk than interest-paying securities of similar maturities. Custodial receipts issued in connection with so-called
trademark zero coupon securities, such as CATs and TIGRs, are not issued by the U.S. Treasury, and are therefore not U.S. Government securities, although the underlying bond represented by such receipt is a debt obligation of the U.S. Treasury.
Other zero coupon Treasury securities (e.g., STRIPs and CUBEs) are direct obligations of the U.S. Government. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Municipal Securities </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund may invest in securities issued by states, territories, possessions, municipalities and other political subdivisions, agencies,
authorities and instrumentalities of states, territories, possessions and multi-state agencies or authorities. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><B><I>Municipal
Securities.</I></B> Municipal securities include debt obligations issued by governmental entities to obtain funds for various public purposes, including the construction of a wide range of public facilities, the refunding of outstanding obligations,
the payment of general operating expenses, and the extension of loans to public institutions and facilities. Municipal securities can be classified into two principal categories, including &#147;general obligation&#148; bonds and other securities
and &#147;revenue&#148; bonds and other securities. General obligation bonds are secured by the issuer&#146;s full faith, credit and taxing power for the payment of principal and interest. Revenue securities are payable only from the revenues
derived from a particular facility or class of facilities or, in some cases, from the proceeds of a special excise tax or other specific revenue source, such as the user of the facility being financed. Municipal securities also may include
&#147;moral obligation&#148; securities, which normally are issued by special purpose public authorities. If the issuer of moral </P>
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obligation securities is unable to meet its debt service obligations from current revenues, it may draw on a reserve fund, the restoration of which is a moral commitment but not a legal
obligation of the governmental entity that created the special purpose public authority. Municipal securities may be structured as fixed-, variable- or floating-rate obligations or as zero-coupon, PIKs and step-coupon securities and may be privately
placed or publicly offered. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Municipal securities may include municipal bonds, municipal notes and municipal leases. Municipal bonds are
debt obligations of a governmental entity that obligate the municipality to pay the holder a specified sum of money at specified intervals and to repay the principal amount of the loan at maturity. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Municipal notes may be issued by governmental entities and other tax-exempt issuers in order to finance short-term cash needs or,
occasionally, to finance construction. Most municipal notes are general obligations of the issuing entity payable from taxes or designated revenues expected to be received within the relevant fiscal period. Municipal notes generally have maturities
of one year or less. Municipal notes can be subdivided into two sub-categories: (i)&nbsp;municipal commercial paper and (ii)&nbsp;municipal demand obligations. Municipal commercial paper typically consists of very short-term unsecured negotiable
promissory notes that are sold, for example, to meet seasonal working capital or interim construction financing needs of a governmental entity or agency. While these obligations are intended to be paid from general revenues or refinanced with
long-term debt, they frequently are backed by letters of credit, lending agreements, note repurchase agreements or other credit facility agreements offered by banks or institutions. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Municipal demand obligations can be subdivided into two general types: variable rate demand notes and master demand obligations. Variable rate
demand notes are tax-exempt municipal obligations or participation interests that provide for a periodic adjustment in the interest rate paid on the notes. They permit the holder to demand payment of the notes, or to demand purchase of the notes at
a purchase price equal to the unpaid principal balance, plus accrued interest either directly by the issuer or by drawing on a bank letter of credit or guaranty issued with respect to such note. The issuer of the municipal obligation may have a
corresponding right to prepay at its discretion the outstanding principal of the note plus accrued interest upon notice comparable to that required for the holder to demand payment. The variable rate demand notes in which the Fund may invest are
payable, or are subject to purchase, on demand usually on notice of seven calendar days or less. The terms of the notes generally provide that interest rates are adjustable at intervals ranging from daily to six months. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Master demand obligations are tax-exempt municipal obligations that provide for a periodic adjustment in the interest rate paid and permit
daily changes in the amount borrowed. The interest on such obligations is, in the opinion of counsel for the borrower, excluded from gross income for federal income tax purposes (but not necessarily for alternative minimum tax purposes). Although
there is no secondary market for master demand obligations, such obligations are considered by the Fund to be liquid because they are payable upon demand. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Investing in municipal securities is subject to certain risks. There are variations in the quality of municipal securities, both within a
particular classification and between classifications, and the rates of return on municipal securities can depend on a variety of factors, including general money market conditions, the financial condition of the issuer, general conditions of the
municipal bond market, the size of a particular offering, the maturity of the obligation, and the rating of the issue. The ratings of NRSROs represent their opinions as to the quality of municipal securities. It should
</P>
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be emphasized, however, that these ratings are general and are not absolute standards of quality, and municipal securities with the same maturity, interest rate, and rating may have different
rates of return while municipal securities of the same maturity and interest rate with different ratings may have the same rate of return. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The payment of principal and interest on most municipal securities purchased by the Fund will depend upon the ability of the issuers to meet
their obligations. An issuer&#146;s obligations under its municipal securities are subject to the provisions of bankruptcy, insolvency, and other laws affecting the rights and remedies of creditors, such as the United States Bankruptcy Code. The
power or ability of an issuer to meet its obligations for the payment of interest on and principal of its municipal securities may be materially adversely affected by litigation or other conditions. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">There are particular considerations and risks relevant to investing in a portfolio of a single state&#146;s municipal securities, such as the
greater risk of the concentration of portfolio holdings. Each state&#146;s municipal securities may include, in addition to securities issued by the relevant state and its political subdivisions, agencies, authorities and instrumentalities,
securities issued by the governments of Guam, Puerto Rico or the U.S. Virgin Islands. These securities may be subject to different risks than municipal securities issued by the relevant state and its political subdivisions, agencies, authorities and
instrumentalities. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund ordinarily purchases municipal securities whose interest, in the opinion of bond counsel, is excluded from
gross income for federal income tax purposes. The opinion of bond counsel may assert that such interest is not an item of tax preference for the purposes of the alternative minimum tax or is exempt from certain state or local taxes. There is no
assurance that the applicable taxing authority will agree with this opinion. In the event, for example, the Internal Revenue Service (&#147;IRS&#148;) determines that an issuer does not comply with relevant tax requirements, interest payments from a
security could become federally taxable, possibly retroactively to the date the security was issued. As a shareholder of the Fund, you may be required to file an amended tax return as a result, reporting such income as taxable. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><B><I>Municipal Bonds</I></B><B>.</B> Municipal bonds share the attributes of debt/fixed income securities in general, but are generally
issued by states, municipalities and other political subdivisions, agencies, authorities and instrumentalities of states and multi-state agencies or authorities. The municipal bonds that the Fund may purchase include general obligation bonds and
limited obligation bonds (or revenue bonds), including industrial development bonds issued pursuant to former federal tax law. General obligation bonds are obligations involving the credit of an issuer possessing taxing power and are payable from
such issuer&#146;s general revenues and not from any particular source. Limited obligation bonds are payable only from the revenues derived from a particular facility or class of facilities or, in some cases, from the proceeds of a special excise or
other specific revenue source. Tax-exempt private activity bonds and industrial development bonds generally are also revenue bonds and thus are not payable from the issuer&#146;s general revenues. The credit and quality of private activity bonds and
industrial development bonds are usually related to the credit of the corporate user of the facilities. Payment of interest on and repayment of principal of such bonds is the responsibility of the user and any guarantor. The Fund does not expect to
be eligible to pass through to shareholders the tax-exempt character of interest earned on municipal bonds. The Fund may be more sensitive to adverse economic, business or political developments if it invests a substantial portion of its assets in
industrial development bonds. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund may invest in pre-refunded municipal bonds. Pre-refunded municipal bonds are tax exempt
bonds that have been refunded to a call date prior to the final maturity of principal, or, in the case of pre-refunded municipal bonds commonly referred to as &#147;escrowed-to-maturity bonds,&#148; to the final maturity of principal, and remain
outstanding in the municipal market. The payment of principal and interest of the pre-refunded municipal bonds held by the Fund is funded from securities in a designated escrow account that holds U.S. Treasury securities or other obligations of the
U.S. Government (including its agencies and instrumentalities (&#147;Agency Securities&#148;)). As the payment of principal and interest is generated from securities held in an escrow account established by the municipality and an independent escrow
agent, the pledge of the municipality has been fulfilled and the original pledge of revenue by the municipality is no longer in place. The escrow account securities pledged to pay the principal and interest of the pre-refunded municipal bond do not
guarantee the price movement of the bond before maturity. Issuers of municipal bonds refund in advance of maturity the outstanding higher cost debt and issue new, lower cost debt, placing the proceeds of the lower cost issuance into an escrow
account to pre-refund the older, higher cost debt. Investments in pre-refunded municipal bonds held by the Fund may subject the Fund to interest rate risk, market risk and credit risk. In addition, while a secondary market exists for pre-refunded
municipal bonds, if the Fund sells pre-refunded municipal bonds prior to maturity, the price received may be more or less than the original cost, depending on market conditions at the time of sale. To the extent permitted by the SEC and the IRS, the
Fund&#146;s investment in pre-refunded municipal bonds backed by U.S. Treasury and Agency securities in the manner described above, will, for purposes of diversification tests applicable to the Fund, be considered an investment in the respective
U.S. Treasury and Agency securities. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Under the Code, certain limited obligation bonds are considered &#147;private activity bonds&#148;
and interest paid on such bonds is treated as an item of tax preference for purposes of calculating federal alternative minimum tax liability. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Economic downturns and budgetary constraints have made municipal bonds more susceptible to downgrade, default and bankruptcy. In addition,
difficulties in the municipal bond markets could result in increased illiquidity, volatility and credit risk, and a decrease in the number of municipal bond investment opportunities. The value of municipal bonds may also be affected by uncertainties
involving the taxation of municipal bonds or the rights of municipal bond holders in the event of a bankruptcy. Proposals to restrict or eliminate the federal income tax exemption for interest on municipal bonds are introduced before Congress from
time to time. These legal uncertainties could affect the municipal bond market generally, certain specific segments of the market, or the relative credit quality of particular securities. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund may purchase and sell portfolio investments to take advantage of changes or anticipated changes in yield relationships, markets or
economic conditions. The Fund may also sell municipal bonds due to changes in PIMCO&#146;s evaluation of the issuer. The secondary market for municipal bonds typically has been less liquid than that for taxable debt/fixed income securities, and this
may affect the Fund&#146;s ability to sell particular municipal bonds at then-current market prices, especially in periods when other investors are attempting to sell the same securities. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Additionally, municipal bonds rated below investment grade (i.e., high yield municipal bonds) may not be as liquid as higher-rated municipal
bonds. Reduced liquidity in the secondary market may have an adverse impact on the market price of a municipal bond and on the Fund&#146;s ability to sell a municipal bond in response to changes or anticipated changes in economic conditions or to
meet the Fund&#146;s cash needs. Reduced liquidity may also make it more difficult to obtain market quotations based on actual trades for purposes of valuing the Fund&#146;s portfolio. For more information on high yield securities please see
&#147;High Yield Securities (&#147;Junk Bonds&#148;) and Securities of Distressed Companies&#148; above. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Prices and yields on municipal bonds are dependent on a variety of factors, including general
money-market conditions, the financial condition of the issuer, general conditions of the municipal bond market, the size of a particular offering, the maturity of the obligation and the rating of the issue. A number of these factors, including the
ratings of particular issues, are subject to change from time to time. Information about the financial condition of an issuer of municipal bonds may not be as extensive as that which is made available by corporations whose securities are publicly
traded. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The perceived increased likelihood of default among issuers of municipal bonds has resulted in constrained illiquidity,
increased price volatility and credit downgrades of issuers of municipal bonds. Local and national market forces&#151;such as declines in real estate prices and general business activity&#151;may result in decreasing tax bases, fluctuations in
interest rates, and increasing construction costs, all of which could reduce the ability of certain issuers of municipal bonds to repay their obligations. Certain issuers of municipal bonds have also been unable to obtain additional financing
through, or must pay higher interest rates on, new issues, which may reduce revenues available for issuers of municipal bonds to pay existing obligations. In addition, events have demonstrated that the lack of disclosure rules in this area can make
it difficult for investors to obtain reliable information on the obligations underlying municipal bonds. Adverse developments in the municipal bond market may negatively affect the value of all or a substantial portion of a fund&#146;s holdings in
municipal bonds. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Obligations of issuers of municipal bonds are subject to the provisions of bankruptcy, insolvency and other laws
affecting the rights and remedies of creditors. Congress or state legislatures may seek to extend the time for payment of principal or interest, or both, or to impose other constraints upon enforcement of such obligations. There is also the
possibility that as a result of litigation or other conditions, the power or ability of issuers to meet their obligations for the payment of interest and principal on their municipal bonds may be materially affected or their obligations may be found
to be invalid or unenforceable. Such litigation or conditions may from time to time have the effect of introducing uncertainties in the market for municipal bonds or certain segments thereof, or of materially affecting the credit risk with respect
to particular bonds. Adverse economic, business, legal or political developments might affect all or a substantial portion of the Fund&#146;s municipal bonds in the same manner. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">From time to time, proposals have been introduced before Congress for the purpose of restricting or eliminating the federal income tax
exemption for interest on certain types of municipal bonds. Additionally, certain other proposals have been introduced that would have the effect of taxing a portion of exempt interest and/or reducing the tax benefits of receiving exempt interest.
It can be expected that similar proposals may be introduced in the future. As a result of any such future legislation, the availability of such municipal bonds for investment by the Fund and the value of such municipal bonds held by the Fund may be
affected. In addition, it is possible that events occurring after the date of a municipal bond&#146;s issuance, or after the Fund&#146;s acquisition of such obligation, may result in a determination that the interest paid on that obligation is
taxable, in certain cases retroactively. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Some longer-term municipal bonds give the investor the right to &#147;put&#148; or sell the
security at par (face value) within a specified number of days following the investor&#146;s request&#151;usually one to seven days. This demand feature enhances a security&#146;s liquidity by shortening its effective maturity and enables it to
trade at a price equal to or very close to par. If a demand feature terminates prior to being exercised, the Fund would hold the longer-term security, which could experience substantially more volatility. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund may invest in taxable municipal bonds, such as Build America Bonds. Build America Bonds are tax credit bonds created by the American
Recovery and Reinvestment Act of 2009, which authorized state and local governments to issue Build America Bonds as taxable bonds in 2009 and 2010, without volume limitations, to finance any capital expenditures for which such issuers could
otherwise issue traditional tax-exempt bonds. State and local governments may receive a direct federal subsidy payment for a portion of their borrowing costs on Build America Bonds equal to 35% of the total coupon interest paid to investors (or 45%
in the case of Recovery Zone Economic Development Bonds). The state or local government issuer can elect to either take the federal subsidy or pass the 35% tax credit along to bondholders. The Fund&#146;s investments in Build America Bonds or
similar taxable municipal bonds will result in taxable income and the Fund may elect to pass through to holders of the Fund&#146;s Common Shares (&#147;Common Shareholders&#148;) the corresponding tax credits. The tax credits can generally be used
to offset federal income taxes and the alternative minimum tax, but such credits are generally not refundable. Build America Bonds or similar taxable municipal bonds involve similar risks as tax-exempt municipal bonds, including credit and market
risk. They are intended to assist state and local governments in financing capital projects at lower borrowing costs and are likely to attract a broader group of investors than tax-exempt municipal bonds. Although Build America Bonds were only
authorized for issuance during 2009 and 2010, the program may have resulted in reduced issuance of tax-exempt municipal bonds during the same period. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Build America Bond program expired on December&nbsp;31, 2010, at which point no further issuance of new Build America Bonds was permitted.
As of the date of this Statement of Additional Information, there is no indication that Congress will renew the program to permit issuance of new Build America Bonds. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><B><I>Puerto Rico Municipal Securities.</I></B> Municipal obligations issued by the Commonwealth of Puerto Rico or its political subdivisions,
agencies, instrumentalities, or public corporations may be affected by economic, market, political, and social conditions in Puerto Rico. Puerto Rico currently is experiencing significant fiscal and economic challenges, including substantial debt
service obligations, high levels of unemployment, underfunded public retirement systems, and persistent government budget deficits. These challenges may negatively affect the value of the Fund&#146;s investments in Puerto Rico municipal securities.
Major ratings agencies have downgraded the general obligation debt of Puerto Rico to below investment grade and continue to maintain a negative outlook for this debt, which increases the likelihood that the rating will be lowered further. In both
August 2015 and January 2016, Puerto Rico defaulted on its debt by failing to make full payment due on its outstanding bonds, and there can be no assurance that Puerto Rico will be able to satisfy its future debt obligations. Further downgrades or
defaults may place additional strain on the Puerto Rico economy and may negatively affect the value, liquidity, and volatility of the Fund&#146;s investments in Puerto Rico municipal securities. Legislation, including legislation that would allow
Puerto Rico to restructure its municipal debt obligations, thus increasing the risk that Puerto Rico may never pay off municipal indebtedness, or may pay only a small fraction of the amount owed, could also impact the value of the Fund&#146;s
investments in Puerto Rico municipal securities. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Corporate Debt Securities </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund may invest in corporate debt securities of U.S. issuers and foreign issuers, and/or it may hold its assets in these securities for
cash management purposes. The investment return of corporate debt securities reflects interest earnings and changes in the market value of the security. The market value of a corporate debt obligation may be expected to rise and fall inversely with
interest rates generally. There also exists the risk that the issuers of the securities may not be able to meet their obligations on interest or principal payments at the time called for by an instrument. The Fund&#146;s investments in U.S. dollar
or foreign currency-denominated corporate debt securities of domestic or foreign issuers are limited to corporate debt securities (corporate bonds, debentures, notes and other similar corporate debt instruments, including convertible securities)
which meet the minimum ratings criteria set forth for the Fund, or, if unrated, are in PIMCO&#146;s opinion comparable in quality to corporate debt securities in which the Fund may invest. Corporate income-producing securities may include forms of
preferred or preference stock. The rate interest on a corporate debt security may be fixed, floating or variable, and may vary inversely with respect to a reference rate. The rate of return or return of principal on some debt obligations may be
linked or indexed to the level of exchange rates between the U.S. dollar and a foreign currency </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">
or currencies. Corporate debt securities may be acquired with warrants attached. Securities rated Baa by Moody&#146;s, BBB by S&amp;P and BBB by Fitch are the lowest which are considered
&#147;investment grade&#148; obligations. Moody&#146;s describes securities rated Baa as &#147;medium-grade&#148; obligations; they are subject to moderate credit risk and as such may possess certain speculative characteristics. S&amp;P describes
securities rated BBB as &#147;having adequate capacity to meet financial commitments, however, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial
commitments.&#148; For securities rated BBB, Fitch states that &#147;... expectations of default risk are currently low... capacity for payment of financial commitments is considered adequate, but adverse business or economic conditions are more
likely to impair this capacity.&#148; For a discussion of securities rated below investment grade, see &#147;High Yield Securities (&#147;Junk Bonds&#148;) and Securities of Distressed Companies&#148; above. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Commercial Paper </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Commercial paper
represents short-term unsecured promissory notes issued in bearer form by corporations such as banks or bank holding companies and finance companies. The Fund may invest in commercial paper of any credit quality consistent with the Fund&#146;s
investment objectives and policies, including unrated commercial paper for which PIMCO has made a credit quality assessment. See Appendix A to the Prospectus for a description of the ratings assigned by Moody&#146;s, S&amp;P and Fitch Ratings to
commercial paper. The rate of return on commercial paper may be linked or indexed to the level of exchange rates between the U.S. dollar and a foreign currency or currencies. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Convertible Securities </B></P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund may
invest in convertible securities, which may offer higher income than the common stocks into which they are convertible. A convertible debt security is a bond, debenture, note, or other security that entitles the holder to acquire common stock or
other equity securities of the same or a different issuer. A convertible security generally entitles the holder to receive interest paid or accrued until the convertible security matures or is redeemed, converted or exchanged. Before conversion,
convertible securities have characteristics similar to non-convertible debt securities or preferred securities. Convertible securities rank senior to common stock in a corporation&#146;s capital structure and, therefore, generally entail less risk
than the corporation&#146;s common stock, although the extent to which such risk is reduced depends in large measure upon the degree to which the convertible security sells above its value as a fixed income security. Convertible securities are
subordinate in rank to any senior debt obligations of the issuer, and, therefore, an issuer&#146;s convertible securities entail more risk than its debt obligations. Convertible securities generally offer lower interest or dividend yields than
non-convertible debt securities of similar credit quality because of the potential for capital appreciation. In addition, convertible securities are often lower-rated securities. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Because of the conversion feature, the price of the convertible security will normally fluctuate in some proportion to changes in the price of
the underlying asset, and as such is subject to risks relating to the activities of the issuer and/or general market and economic conditions. The income component of a convertible security may tend to cushion the security against declines in the
price of the underlying asset. However, the income component of convertible securities causes fluctuations based upon changes in interest rates and the credit quality of the issuer. If the convertible security&#146;s &#147;conversion value,&#148;
which is the market value of the underlying common </P>
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stock that would be obtained upon the conversion of the convertible security, is substantially below the &#147;investment value,&#148; which is the value of a convertible security viewed without
regard to its conversion feature (i.e., strictly on the basis of its yield), the price of the convertible security is typically governed principally by its investment value. If the conversion value of a convertible security increases to a point that
approximates or exceeds its investment value, the value of the security will typically be principally influenced by its conversion value. A convertible security generally sells at a premium over its conversion value to the extent investors place
value on the right to acquire the underlying common stock while holding an income-producing security. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">A convertible security may be
subject to redemption at the option of the issuer at a predetermined price. If a convertible security held by the Fund is called for redemption, the Fund would be required to permit the issuer to redeem the security and convert it to underlying
common stock, or would sell the convertible security to a third party, which may have an adverse effect on the Fund&#146;s ability to achieve its investment objectives. The Fund generally would invest in convertible securities for their favorable
price characteristics and total return potential and would normally not exercise an option to convert unless the security is called or conversion is forced. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund may invest in so-called &#147;synthetic convertible securities,&#148; which are composed of two or more different securities whose
investment characteristics, taken together, resemble those of convertible securities. A third party or PIMCO may create a &#147;synthetic&#148; convertible security by combining separate securities that possess the two principal characteristics of a
traditional convertible security, i.e., an income-producing security (&#147;income-producing component&#148;) and the right to acquire an equity security (&#147;convertible component&#148;). The income-producing component is achieved by investing in
non-convertible, income-producing securities such as bonds, preferred securities and money market instruments, which may be represented by derivative instruments. The convertible component is achieved by investing in securities or instruments such
as warrants or options to buy common stock at a certain exercise price, or options on a stock index. Unlike a traditional convertible security, which is a single security having a unitary market value, a synthetic convertible comprises two or more
separate securities, each with its own market value. Therefore, the &#147;market value&#148; of a synthetic convertible security is the sum of the values of its income-producing component and its convertible component. For this reason, the values of
a synthetic convertible security and a traditional convertible security may respond differently to market fluctuations. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">More flexibility
is possible in the assembly of a synthetic convertible security than in the purchase of a convertible security. Although synthetic convertible securities may be selected where the two components are issued by a single issuer, thus making the
synthetic convertible security similar to the traditional convertible security, the character of a synthetic convertible security allows the combination of components representing distinct issuers, when PIMCO believes that such a combination may
better achieve the Fund&#146;s investment objectives. A synthetic convertible security also is a more flexible investment in that its two components may be purchased separately. For example, the Fund may purchase a warrant for inclusion in a
synthetic convertible security but temporarily hold short-term investments while postponing the purchase of a corresponding bond pending development of more favorable market conditions. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">A holder of a synthetic convertible security faces the risk of a decline in the price of the security or the level of the index or security
involved in the convertible component, causing a decline in the value of the security or instrument, such as a call option or warrant purchased to create the synthetic convertible security. Should the price of the stock fall below the exercise price
and </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">37 </P>


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remain there throughout the exercise period, the entire amount paid for the call option or warrant would be lost. Because a synthetic convertible security includes the income-producing component
as well, the holder of a synthetic convertible security also faces the risk that interest rates will rise, causing a decline in the value of the income-producing instrument. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund also may purchase synthetic convertible securities created by other parties, including convertible structured notes. Convertible
structured notes are income-producing debentures linked to equity, and are typically issued by investment banks. Convertible structured notes have the attributes of a convertible security; however, the investment bank that issues the convertible
note, rather than the issuer of the underlying common stock into which the note is convertible, assumes credit risk associated with the underlying investment, and the Fund in turn assumes credit risk associated with the convertible note. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><B><I>Contingent Convertible Instruments.</I></B> Contingent convertible securities (&#147;CoCos&#148;) are a form of hybrid debt security
that is structured to either convert into equity or have their principal written down upon the occurrence of certain &#147;triggers.&#148; The triggers are generally linked to regulatory capital thresholds or regulatory actions calling into question
the issuing banking institution&#146;s continued viability as a going-concern. CoCos&#146; unique equity conversion or principal write-down features are tailored to the issuing banking institution and its regulatory requirements. Some additional
risks associated with CoCos include, but are not limited to: </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><I>Loss absorption risk</I>. CoCos have fully discretionary coupons.
This means coupons can potentially be cancelled at the banking institution&#146;s discretion or at the request of the relevant regulatory authority in order to help the bank absorb losses. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><I>Subordinated instruments</I>. CoCos will, in the majority of circumstances, be issued in the form of subordinated debt instruments in order
to provide the appropriate regulatory capital treatment prior to a conversion. Accordingly, in the event of liquidation, dissolution or winding-up of an issuer prior to a conversion having occurred, the rights and claims of the holders of the CoCos,
such as the Fund, against the issuer in respect of or arising under the terms of the CoCos shall generally rank junior to the claims of all holders of unsubordinated obligations of the issuer. In addition, if the CoCos are converted into the
issuer&#146;s underlying equity securities following a conversion event (i.e., a &#147;trigger&#148;), each holder will be subordinated due to their conversion from being the holder of a debt instrument to being the holder of an equity instrument.
</P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><I>Market value will fluctuate based on unpredictable factors</I>. The value of CoCos is unpredictable and will be influenced by many
factors including, without limitation: (i)&nbsp;the creditworthiness of the issuer and/or fluctuations in such issuer&#146;s applicable capital ratios; (ii)&nbsp;supply and demand for the CoCos; (iii)&nbsp;general market conditions and available
liquidity; and (iv)&nbsp;economic, financial and political events that affect the issuer, its particular market or the financial markets in general. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Equity Securities </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund will not
normally invest directly in common stocks of operating companies. However, the Fund may own and hold common stocks of operating companies in its portfolio from time to time in connection with a corporate action, the restructuring of a debt
instrument, or through the conversion of a convertible security held by the Fund. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">38 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The market price of common stocks and other equity securities may go up or down, sometimes
rapidly or unpredictably. Equity securities may decline in value due to factors affecting equity securities markets generally, particular industries represented in those markets, or the issuer itself. The values of equity 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 interest or currency rates or adverse
investor sentiment generally. They may also decline due to factors that affect a particular industry or industries, such as labor shortages or increased production costs and competitive conditions within an industry. Equity securities generally have
greater price volatility than fixed-income securities. These risks are generally magnified in the case of equity investments in distressed companies. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Preferred Securities </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Preferred
securities represent an equity interest in a company that generally entitles the holder to receive, in preference to the holders of other stocks such as common stocks, dividends and a fixed share of the proceeds resulting from a liquidation of the
company. Some preferred securities also entitle their holders to receive additional liquidation proceeds on the same basis as holders of a company&#146;s common stock, and thus also represent an ownership interest in that company. Preferred
securities are subject to issuer-specific and market risks applicable generally to equity securities. The value of a company&#146;s preferred securities may fall as a result of factors relating directly to that company&#146;s products or services. A
preferred security&#146;s value may also fall because of factors affecting not just the company, but companies in the same industry or in a number of different industries, such as increases in production costs. The value of preferred securities may
also be affected by changes in financial markets that are relatively unrelated to the company or its industry, such as changes in interest rates or currency exchange rates. In addition, a company&#146;s preferred securities generally pay dividends
only after the company makes required payments to holders of its bonds and other debt. For this reason, the value of preferred securities will usually react more strongly than bonds and other debt to actual or perceived changes in the company&#146;s
financial condition or prospects. Preferred securities of smaller companies may be more vulnerable to adverse developments than those of larger companies. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><B><I>Adjustable Rate and Auction Preferred Securities.</I></B> Typically, the dividend rate on an adjustable rate preferred security is
determined prospectively each quarter by applying an adjustment formula established at the time of issuance of the security. Although adjustment formulas vary among issues, they typically involve a fixed premium or discount relative to rates on
specified debt securities issued by the U.S. Treasury. Typically, an adjustment formula will provide for a fixed premium or discount adjustment relative to the highest base yield of three specified U.S. Treasury securities: the 90-day Treasury bill,
the 10-year Treasury note and the 20-year Treasury bond. The premium or discount adjustment to be added to or subtracted from this highest U.S. Treasury base rate yield is fixed at the time of issue and cannot be changed without the approval of the
holders of the security. The dividend rate on another type of preferred security in which the Fund may invest, commonly known as auction preferred securities, is adjusted at intervals that may be more frequent than quarterly, such as every 7 or 49
days, based on bids submitted by holders and prospective purchasers of such securities and may be subject to stated maximum and minimum dividend rates. The issues of most adjustable rate and auction preferred securities currently outstanding are
perpetual, but are redeemable after a specified date, or upon notice, at the option of the issuer. Certain issues supported by the credit of a high-rated financial institution provide for mandatory redemption prior to expiration of the credit
arrangement. No redemption can occur if full </P>
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cumulative dividends are not paid. Although the dividend rates on adjustable and auction preferred securities are generally adjusted or reset frequently, the market values of these preferred
securities may still fluctuate in response to changes in interest rates. Market values of adjustable preferred securities also may substantially fluctuate if interest rates increase or decrease once the maximum or minimum dividend rate for a
particular security is approached. Auctions for U.S. auction preferred securities have failed since early 2008, and the dividend rates payable on such preferred securities since that time typically have been paid at their maximum applicable rate
(typically a function of a reference rate of interest). PIMCO expects that auction preferred securities will continue to pay dividends at their maximum applicable rate for the foreseeable future and cannot predict whether or when the auction markets
for auction preferred securities may resume normal functioning. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><B><I>Fixed Rate Preferred Securities.</I></B> Some fixed rate preferred
securities in which the Fund may invest, known as perpetual preferred securities, offer a fixed return with no maturity date. Because they never mature, perpetual preferred securities act like long-term bonds and can be more volatile than and more
sensitive to changes in interest rates than other types of preferred securities that have a maturity date. The Fund may also invest in sinking fund preferred securities. These preferred securities also offer a fixed return, but have a maturity date
and are retired or redeemed on a predetermined schedule. The shorter duration of sinking fund preferred stocks makes them perform somewhat like intermediate-term bonds and they typically have lower yields than perpetual preferred securities. </P>
 <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Bank Obligations </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund may
invest in bank capital securities of both non-U.S. (foreign) and U.S. issuers. Bank capital securities are issued by banks to help fulfill their regulatory capital requirements. There are three common types of bank capital: Lower Tier II, Upper Tier
II and Tier I. Bank capital is generally, but not always, of investment grade quality. Upper Tier II securities are commonly thought of as hybrids of debt and preferred stock. Upper Tier II securities are often perpetual (with no maturity date),
callable and have a cumulative interest deferral feature. This means that under certain conditions, the issuer bank can withhold payment of interest until a later date. However, such deferred interest payments generally earn interest. Tier I
securities often take the form of trust preferred securities. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Bank obligations in which the Fund may invest include, without limitation,
certificates of deposit, bankers&#146; acceptances and fixed time deposits. Certificates of deposit are negotiable certificates that are issued against funds deposited in a commercial bank for a definite period of time and that earn a specified
return. Bankers&#146; acceptances are negotiable drafts or bills of exchange, normally drawn by an importer or exporter to pay for specific merchandise, which are &#147;accepted&#148; by a bank, meaning, in effect, that the bank unconditionally
agrees to pay the face value of the instrument on maturity. Fixed time deposits are bank obligations payable at a stated maturity date and bearing interest at a fixed rate. Fixed time deposits may be withdrawn on demand by the investor, but may be
subject to early withdrawal penalties which vary depending upon market conditions and the remaining maturity of the obligation. There are generally no contractual restrictions on the right to transfer a beneficial interest in a fixed time deposit to
a third party, although there is generally no market for such deposits. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The activities of U.S. banks and most foreign banks are subject
to comprehensive regulations which, in the case of U.S. regulations, have undergone substantial changes in the past decade and </P>
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are currently subject to legislative and regulatory scrutiny. The enactment of new legislation or regulations, as well as changes in interpretation and enforcement of current laws, may affect the
manner of operations and profitability of U.S. and foreign banks. Significant developments in the U.S. banking industry have included increased competition from other types of financial institutions, increased acquisition activity and geographic
expansion. Banks may be particularly susceptible to certain economic factors, such as interest rate changes and adverse developments in the market for real estate. Fiscal and monetary policy and general economic cycles can affect the availability
and cost of funds, loan demand and asset quality and thereby impact the earnings and financial conditions of banks. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Obligations of
foreign banks involve somewhat different investment risks than those affecting obligations of U.S. banks, including the possibilities that their liquidity could be impaired because of future political and economic developments, that their
obligations may be less marketable than comparable obligations of U.S. banks, that a foreign jurisdiction might impose withholding taxes on interest income payable on those obligations, that foreign deposits may be seized or nationalized, that
foreign governmental restrictions such as exchange controls may be adopted which might adversely affect the payment of principal and interest on those obligations and that the selection of those obligations may be more difficult because there may be
less publicly available information concerning foreign banks and the accounting, auditing and financial reporting standards, practices and requirements applicable to foreign banks may differ from those applicable to U.S. banks. Foreign banks are not
generally subject to examination by any U.S. Government agency or instrumentality. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Loans and Other Indebtedness; Loan Participations and Assignments
</B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund may purchase indebtedness and participations in commercial loans, as well as interests and/or servicing or similar rights in
such loans. Such investments may be secured or unsecured and may be newly-originated (and may be specifically designed for the Fund). Indebtedness is different from traditional debt securities in that debt securities are part of a large issue of
securities to the public and indebtedness may not be a security, but may represent a specific commercial loan to a borrower. Loan participations typically represent direct participation, together with other parties, in a loan to a corporate
borrower, and generally are offered by banks or other financial institutions or lending syndicates. The Fund may participate in such syndications, or can buy part of a loan, becoming a part lender. When purchasing indebtedness and loan
participations, the Fund assumes the credit risk associated with the corporate borrower and may assume the credit risk associated with an interposed bank or other financial intermediary. The indebtedness and loan participations in which the Fund may
invest may not be rated by any nationally recognized rating service. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">A loan is often administered by an agent bank acting as agent for
all holders. The agent bank administers the terms of the loan, as specified in the loan agreement. In addition, the agent bank is normally responsible for the collection of principal and interest payments from the corporate borrower and the
apportionment of these payments to the credit of all institutions which are parties to the loan agreement. Unless, under the terms of the loan or other indebtedness, the Fund has direct recourse against the corporate borrower, the Fund may have to
rely on the agent bank or other financial intermediary to apply appropriate credit remedies against a corporate borrower. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">A financial
institution&#146;s employment as agent bank might be terminated in the event that it fails to observe a requisite standard of care or becomes insolvent. A successor agent bank would generally </P>
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be appointed to replace the terminated agent bank, and assets held by the agent bank under the loan agreement should remain available to holders of such indebtedness. However, if assets held by
the agent bank for the benefit of the Fund were determined to be subject to the claims of the agent bank&#146;s general creditors, the Fund might incur certain costs and delays in realizing payment on a loan or loan participation and could suffer a
loss of principal and/or interest. In situations involving other interposed financial institutions (e.g., an insurance company or governmental agency) similar risks may arise. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Purchasers of loans and other forms of direct indebtedness depend primarily upon the creditworthiness of the corporate borrower for payment of
principal and interest. If the Fund does not receive scheduled interest or principal payments on such indebtedness, the Portfolio&#146;s share price and yield could be adversely affected. Loans that are fully secured offer the Fund more protection
than an unsecured loan in the event of non-payment of scheduled interest or principal. However, there is no assurance that the liquidation of collateral from a secured loan would satisfy the corporate borrower&#146;s obligation, or that the
collateral can be liquidated. In the event of the bankruptcy of a borrower, the Fund could experience delays or limitations in its ability to realize the benefits of any collateral securing a loan. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund may invest in loan participations with credit quality comparable to that of issuers of its securities investments. Indebtedness of
companies whose creditworthiness is poor involves substantially greater risks, and may be highly speculative. Some companies may never pay off their indebtedness, or may pay only a small fraction of the amount owed. Consequently, when investing in
indebtedness of companies with poor credit, the Fund bears a substantial risk of losing the entire amount invested. The Fund may make investments in indebtedness and loan participations to achieve capital appreciation, rather than to seek income.
</P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Loans and other types of direct indebtedness (which the Fund may invest in or otherwise gain exposure to) may not be readily marketable
and may be subject to restrictions on resale. In some cases, negotiations involved in disposing of indebtedness may require weeks to complete. Consequently, some indebtedness may be difficult or impossible to dispose of readily at what the
Investment Manager believes to be a fair price. In addition, valuation of illiquid indebtedness involves a greater degree of judgment in determining the Fund&#146;s net asset value than if that value were based on available market quotations, and
could result in significant variations in the Fund&#146;s daily share price. At the same time, some loan interests are traded among certain financial institutions and accordingly may be deemed liquid. As the market for different types of
indebtedness develops, the liquidity of these instruments is expected to improve. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Investments in loans through a purchase of a loan
or a direct assignment of a financial institution&#146;s interests with respect to a loan may involve additional risks to the Fund. 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 purchaser of an assignment
may differ from, and be more limited than, those held by the assigning lender. 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 (see &#147;Real Estate Assets and Related Derivatives&#148; above). In addition, it is conceivable that under
emerging legal theories of lender liability, the Fund could be held liable as co-lender. It is unclear whether loans and other forms of </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">42 </P>


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direct indebtedness offer securities law protections against fraud and misrepresentation. In the absence of definitive regulatory guidance, the Fund relies on the Investment Manager&#146;s
research in an attempt to avoid situations where fraud or misrepresentation could adversely affect the Fund. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund may invest in
debtor-in-possession financings (commonly known as &#147;DIP financings&#148;). DIP financings are arranged when an entity seeks the protections of the bankruptcy court under Chapter 11 of the U.S. Bankruptcy Code. These financings allow the entity
to continue its business operations while reorganizing under Chapter 11. Such financings constitute senior liens on unencumbered security (i.e., security not subject to other creditors&#146; claims). There is a risk that the entity will not emerge
from Chapter 11 and be forced to liquidate its assets under Chapter 7 of the U.S. Bankruptcy Code. In the event of liquidation, the Fund&#146;s only recourse will be against the property securing the DIP financing. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">In determining whether to make a direct loan, the Fund will rely primarily upon the creditworthiness of the borrower and/or any collateral for
payment of interest and repayment of principal. In making a direct loan, the Fund is exposed to the risk that the borrower may default or become insolvent and, consequently, that the Fund will lose money on the loan. Furthermore, direct loans may
subject the Fund to liquidity and interest rate risk and certain direct loans may be deemed illiquid. Direct loans are not publicly traded and may not have a secondary market. The lack of a secondary market for direct loans may have an adverse
impact on the ability of the Fund to dispose of a direct loan and/or to value the direct loan. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">In purchasing loans, the Fund will compete
with a broad spectrum of lenders. Increased competition for, or a diminishment in the available supply of, qualifying loans could result in lower yields on such loans, which could reduce Fund performance. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Various state licensing requirements could apply to the Fund with respect to investments in loans and similar assets. The licensing
requirements could apply depending on the location of the borrower, the location of the collateral securing the loan, or the location where the Fund or PIMCO operates or has offices. In states in which it is licensed, the Fund or PIMCO will be
required to comply with applicable laws and regulations, including consumer protection and anti-fraud laws, which could impose restrictions on the Fund&#146;s or PIMCO&#146;s ability to take certain actions to protect the value of its investments in
such assets and impose compliance costs. Failure to comply with such laws and regulations could lead to, among other penalties, a loss of the Fund&#146;s or PIMCO&#146;s license, which in turn could require the Fund to divest assets located in or
secured by real property located in that state. These risks will also apply to issuers and entities in which the Fund invests that hold similar assets, as well as any origination company or servicer in which the Fund owns an interest. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Loan origination and servicing companies are routinely involved in legal proceedings concerning matters that arise in the ordinary course of
their business. These legal proceedings range from actions involving a single plaintiff to class action lawsuits with potentially tens of thousands of class members. 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&#146; financial results. To the extent the Fund seeks to engage 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 </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">43 </P>


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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 investments. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Senior Loans </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">To the extent the Fund invests in senior loans, the Fund may be subject to greater levels of credit risk, call risk, settlement risk and
liquidity risk, than funds that do not invest in such securities. These instruments are considered predominantly speculative with respect to an issuer&#146;s continuing ability to make principal and interest payments, and may be more volatile than
other types of securities. An economic downturn or individual corporate developments could adversely affect the market for these instruments and reduce the Fund&#146;s ability to sell these instruments at an advantageous time or price. An economic
downturn would generally lead to a higher non-payment rate and, a senior loan may lose significant market value before a default occurs. The Fund may also be subject to greater levels of liquidity risk than funds that do not invest in senior loans.
In addition, the senior 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 senior loans may involve greater costs than transactions in more actively traded securities. 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 senior loans 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
senior loans and/or may result in the Fund not receiving the proceeds from a sale of a senior loan for an extended period after such sale, each of which could result in losses to the Fund. Senior loans may have extended trade settlement periods
which may result in cash not being immediately available to the Fund. If an issuer of a senior loan prepays or redeems the loan prior to maturity, the Fund will have to reinvest the proceeds in other senior loans or similar instruments that may pay
lower interest rates. Because of the risks involved in investing in senior loans, an investment in the Fund that invests in such instruments should be considered speculative. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Delayed Funding Loans and Revolving Credit Facilities </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund may also enter into, or acquire participations in, delayed funding loans and revolving credit facilities. Delayed funding loans and
revolving credit facilities are borrowing arrangements in which the lender agrees to make loans up to a maximum amount upon demand by the borrower during a specified term. A revolving credit facility differs from a delayed funding loan in that as
the borrower repays the loan, an amount equal to the repayment may be borrowed again during the term of the revolving credit facility. Delayed funding loans and revolving credit facilities usually provide for floating or variable rates of interest.
These commitments may have the effect of requiring the Fund to increase its investment in a company at a time when it might not otherwise decide to do so (including a time when the company&#146;s financial condition makes it unlikely that such
amounts will be repaid). </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">To the extent that the Fund is committed to advance additional funds, it will at all times segregate assets,
determined to be liquid by PIMCO in accordance with procedures approved by the Board of Trustees, in an amount sufficient to meet such commitments. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">44 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund may invest in delayed funding loans and revolving credit facilities with credit quality
comparable to that of issuers of its securities investments. Delayed funding loans and revolving credit facilities may be subject to restrictions on transfer, and only limited opportunities may exist to resell such instruments. As a result, the Fund
may be unable to sell such investments at an opportune time or may have to resell them at less than fair market value. For a further discussion of the risks involved in investing in loan participations and other forms of direct indebtedness see
&#147;Loans and Other Indebtedness, Loan Participations and Assignments.&#148; Participation interests in revolving credit facilities will be subject to the limitations discussed in &#147;Loans and Other Indebtedness, Loan Participations and
Assignments.&#148; Delayed funding loans and revolving credit facilities are considered to be debt obligations for purposes of the Fund&#146;s investment restriction relating to the lending of funds or assets by the Fund. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Zero-Coupon Bonds, Step-Ups and Payment-In-Kind Securities </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund may invest directly or indirectly in zero-coupon securities, &#147;step-ups&#148; and PIKs. Zero-coupon securities are debt
obligations that do not entitle the holder to any periodic payments of interest either for the entire life of the obligation or for an initial period after the issuance of the obligations. Like zero-coupon bonds, &#147;step-up&#148; bonds pay no
interest initially but eventually begin to pay a coupon rate prior to maturity, which rate may increase at stated intervals during the life of the security. PIKs are debt obligations that pay &#147;interest&#148; in the form of other debt
obligations instead of cash. Each of these instruments is normally issued and traded at a deep discount from face value. The amount of the discount varies depending on such factors as the time remaining until maturity of the securities, prevailing
interest rates, the liquidity of the security and the perceived credit quality of the issuer. The market prices of zero-coupon bonds, step-ups and PIKs generally are more volatile than the market prices of debt instruments that pay interest
currently and in cash and are likely to respond to changes in interest rates to a greater degree than do other types of securities having similar maturities and credit quality. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">In order to satisfy a requirement for qualification as a &#147;regulated investment company&#148; under the Code, an investment company, such
as the Fund, must distribute each year at least 90% of its net investment income, including the original issue discount accrued on zero-coupon bonds, step-ups and PIKs. Because the Fund will not, on a current basis, receive cash payments from the
issuer of these securities in respect of any accrued original issue discount, in some years, the Fund may have to sell other portfolio holdings in order to obtain cash to satisfy the distribution requirements under the Code even though investment
considerations might otherwise make it undesirable for the Fund to sell securities at such time. Under many market conditions, investments in zero-coupon bonds, step-ups and PIKs may be illiquid, making it difficult for the Fund to dispose of them
or determine their current value. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Variable and Floating Rate Debt Securities </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund may invest in floating rate debt instruments, including Senior Loans (described in more detail above). Variable and floating rate
securities are securities that pay interest at rates that adjust whenever a specified interest rate changes, float at a fixed margin above a generally recognized base lending rate and/or reset or are redetermined (e.g., pursuant to an auction) on
specified dates (such as the last day of a month or calendar quarter). These instruments may include, without limitation, variable-rate preferred stock, bank loans, money market instruments and certain types of mortgage-backed and other asset-backed
securities. Due to their variable- or floating-rate features, these instruments will generally pay higher levels of income in a rising interest rate </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">45 </P>


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environment and lower levels of income as interest rates decline. For the same reason, the market value of a variable- or floating-rate instrument is generally expected to have less sensitivity
to fluctuations in market interest rates than a fixed-rate instrument, although the value of a floating-rate instrument may nonetheless decline as interest rates rise and due to other factors, such as changes in credit quality. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund may invest in floating rate debt instruments (&#147;floaters&#148;) and engage in credit spread trades. The interest rate on a
floater is a variable rate which is tied to another interest rate, such as a money-market index or U.S. Treasury bill rate. The interest rate on a floater resets periodically, typically every six months. While, because of the interest rate reset
feature, floaters provide the Fund with a certain degree of protection against rises in interest rates, the Fund will participate in any declines in interest rates as well. A credit spread trade is an investment position relating to a difference in
the prices or interest rates of two securities or currencies where the value of the investment position is determined by movements in the difference between the prices or interest rates, as the case may be, of the respective securities or
currencies. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund may also invest without limit in inverse floating rate debt instruments (&#147;inverse floaters&#148;). The interest
rate on an inverse floater resets in the opposite direction from the market rate of interest to which the inverse floater is indexed. An inverse floater may exhibit greater price volatility than a fixed rate obligation of similar credit quality. See
&#147;Mortgage-Related and Other Asset-Backed Securities&#148; above. The Fund&#146;s investments in variable- and floating-rate securities may require the Fund to accrue and distribute income not yet received. As a result, in order to generate cash
to make the requisite distributions, the Fund may be required to sell securities in its portfolio that it would otherwise have continued to hold. See &#147;Taxation.&#148; </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Inflation-Indexed Bonds </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund may
invest in inflation-indexed bonds. Inflation-indexed bonds are fixed income securities whose principal value is periodically adjusted according to the rate of inflation. Two structures are common. The U.S. Treasury and some other issuers utilize a
structure that accrues inflation into the principal value of the bond. Many other issuers pay out the Consumer Price Index accruals as part of a semiannual coupon. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Inflation-indexed bonds issued by the U.S. Treasury have maturities of approximately five, ten or thirty years, although it is possible that
securities with other maturities will be issued in the future. The U.S. Treasury securities pay interest on a semi-annual basis equal to a fixed percentage of the inflation-adjusted principal amount. For example, if the Fund purchased an
inflation-indexed bond with a par value of $1,000 and a 3% real rate of return coupon (payable 1.5% semi-annually), and the rate of inflation over the first six months was 1%, the mid-year par value of the bond would be $1,010 and the first
semi-annual interest payment would be $15.15 ($1,010 times 1.5%). If inflation during the second half of the year resulted in the whole year&#146;s inflation equaling 3%, the end-of-year par value of the bond would be $1,030 and the second
semi-annual interest payment would be $15.45 ($1,030 times 1.5%). </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">If the periodic adjustment rate measuring inflation falls, the
principal value of inflation-indexed bonds will be adjusted downward, and consequently the interest payable on these securities (calculated with respect to a smaller principal amount) will be reduced. Repayment of the original bond principal upon
maturity (as adjusted for inflation) is guaranteed in the case of a U.S. Treasury inflation-indexed bond, even during a period of deflation, although the inflation-adjusted </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">46 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">
principal received could be less than the inflation-adjusted principal that had accrued to the bond at the time of purchase. However, the current market value of the bonds is not guaranteed and
will fluctuate. The Fund may also invest in other inflation-related bonds that may or may not provide a similar guarantee. If a guarantee of principal is not provided, the adjusted principal value of the bond repaid at maturity may be less than the
original principal amount. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The value of inflation-indexed bonds is expected to change in response to changes in real interest rates. Real
interest rates in turn are tied to the relationship between nominal interest rates and the rate of inflation. Therefore, if the rate of inflation rises at a faster rate than nominal interest rates, real interest rates might decline, leading to an
increase in value of inflation-indexed bonds. In contrast, if nominal interest rates increase at a faster rate than inflation, real interest rates might rise, leading to a decrease in value of inflation-indexed bonds. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">While these securities are expected to provide protection from long-term inflationary trends, short-term increases in inflation may lead to a
decline in value. If interest rates rise due to reasons other than inflation (for example, due to changes in currency exchange rates), investors in these securities may not be protected to the extent that the increase is not reflected in the
bond&#146;s inflation measure. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The periodic adjustment of U.S. inflation-indexed bonds is tied to the Consumer Price Index for All
Urban Consumers (&#147;CPI-U&#148;), which is not seasonably adjusted and which is calculated monthly by the U.S. Bureau of Labor Statistics. The CPI-U is a measurement of changes in the cost of living, made up of components such as housing, food,
transportation and energy. Inflation-indexed bonds issued by a foreign (non-U.S.) government are generally adjusted to reflect a comparable inflation index calculated by that government. There can be no assurance that the CPI-U or any foreign
(non-U.S.) inflation index will accurately measure the real rate of inflation in the prices of goods and services. Moreover, there can be no assurance that the rate of inflation in a foreign (non-U.S.) country will be correlated to the rate of
inflation in the United States. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Any increase in the principal amount of an inflation-indexed bond will be considered taxable
ordinary income, even though investors do not receive their principal until maturity. As a result, in order to generate cash to make the requisite distributions, the Fund may be required to sell securities in its portfolio that it would otherwise
have continued to hold. See &#147;Taxation.&#148; </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Event-Linked Bonds </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund may obtain event-linked exposure by investing in &#147;event-linked bonds,&#148; or &#147;event-linked swaps,&#148; or by
implementing &#147;event-linked strategies.&#148; Event-linked exposure results in gains that typically are contingent on the non-occurrence of a specific &#147;trigger&#148; event, such as a hurricane, earthquake or other physical or
weather-related phenomena. Some event-linked bonds are commonly referred to as &#147;catastrophe bonds.&#148; They may be issued by government agencies, insurance companies, reinsurers, special purpose corporations or other on-shore or off-shore
entities (such special purpose entities are created to accomplish a narrow and well-defined objective, such as the issuance of a note in connection with a reinsurance transaction). If a trigger event causes losses exceeding a specific amount in the
geographic region and time period specified in a bond, the Fund may lose a portion or all of its principal invested in the bond. If no trigger event occurs, the Fund will recover its principal plus interest. For some event-linked bonds, the trigger
event or losses may be based on company-wide losses, index-portfolio losses, industry indices or readings of scientific instruments rather than specified actual losses. Often the event-linked </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">47 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">
bonds provide for extensions of maturity that are mandatory, or optional at the discretion of the issuer, in order to process and audit loss claims in those cases where a trigger event has, or
possibly has, occurred. An extension of maturity may increase volatility. In addition to the specified trigger events, event-linked bonds also may expose the Fund to certain unanticipated risks including but not limited to issuer risk, credit risk,
counterparty risk, adverse regulatory or jurisdictional interpretations and adverse tax consequences. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Event-linked bonds are a relatively
new type of financial instrument. As such, there is no significant trading history for many of these securities, and there can be no assurance that a liquid market in these instruments will develop. Lack of a liquid market may impose the risk of
higher transaction costs and the possibility that the Fund may be forced to liquidate positions when it would not be advantageous to do so. Event-linked bonds are typically rated, and the Fund will only invest in event-linked bonds that meet the
credit quality requirements for the Fund. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Derivative Instruments </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">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. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Generally,
derivatives are financial contracts whose value depends on, or is derived from, the value of an underlying asset, reference rate or index and may relate to, among other things, stocks, bonds, interest rates, currencies or currency exchange rates,
commodities, related indexes and other assets. The following describes certain derivative instruments and products in which the Fund may invest and risks associated therewith. The derivatives market is always changing and the Fund may invest in
derivatives other than those shown below. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">In pursuing its investment objectives, the Fund may purchase and sell (write) both put
options and call options on securities, swap agreements, securities indexes, commodity indexes and foreign currencies, and enter into interest rate, foreign currency, index and commodity futures contracts and purchase and sell options on such
futures contracts (&#147;futures options&#148;) for hedging purposes or as part of their overall investment strategies. The Fund also may purchase and sell foreign currency options for purposes of increasing exposure to a foreign currency or to
shift exposure to foreign currency fluctuations from one country to another. The Fund also may enter into swap agreements with respect to interest rates, commodities, indexes of securities or commodities, and to the extent it may invest in foreign
currency denominated securities, may enter into swap agreements with respect to foreign currencies. The Fund may invest in structured notes. If other types of financial instruments, including other types of options, futures contracts, or futures
options are traded in the future, the Fund may also use those instruments, provided that their use is consistent with the Fund&#146;s investment objectives. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The value of some derivative instruments in which the Fund invest may be particularly sensitive to changes in prevailing interest rates, and,
like the other investments of the Fund, the ability of the Fund to successfully utilize these instruments may depend in part upon the ability of PIMCO to forecast interest rates and other economic factors correctly. If PIMCO incorrectly forecasts
such factors and has taken positions in derivative instruments contrary to prevailing market trends, the Fund could be exposed to additional, unforeseen risks, including the risk of loss. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">48 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund might not employ any of the strategies described below, and no assurance can be given
that any strategy used will succeed. If PIMCO incorrectly forecasts interest rates, market values or other economic factors in using a derivatives strategy for the Fund, the Fund might have been in a better position if it had not entered into the
transaction at all. The use of these strategies involves certain special risks, including a possible imperfect correlation, or even no correlation, between price movements of derivative instruments and price movements of related investments. While
some strategies involving derivative instruments can reduce the risk of loss, they can also reduce the opportunity for gain or even result in losses by offsetting favorable price movements in related investments or otherwise, due to the possible
inability of the Fund to purchase or sell a portfolio security at a time that otherwise would be favorable or the possible need to sell a portfolio security at a disadvantageous time because the Fund is required to maintain asset coverage or
offsetting positions in connection with transactions in derivative instruments, and the possible inability of the Fund to close out or to liquidate its derivatives positions. In addition, the Fund&#146;s use of such instruments may cause the Fund to
realize higher amounts of short-term capital gains (generally subject to tax when distributed to shareholders at ordinary income tax rates) than if it had not used such instruments. If the Fund gains exposure to an asset class using derivative
instruments backed by a collateral portfolio of fixed income instruments, changes in the value of the fixed income instruments may result in greater or lesser exposure to that asset class than would have resulted from a direct investment in
securities comprising that asset class. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">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, it is important to consider that certain derivative transactions may be modified or terminated only by mutual consent of the Fund and
its counterparty and certain derivative transactions may be terminated by the counterparty or the Fund, as the case may be, upon the occurrence of certain Fund-related or counterparty-related events, which may result in losses or gains to the Fund
based on the market value of the derivative transactions entered into between the Fund and the counterparty. In addition, such early terminations may result in taxable events and accelerate gain or loss recognition for tax purposes. It may not be
possible for the Fund to modify, terminate, or offset the Fund&#146;s obligations or the Fund&#146;s exposure to the risks associated with a derivative transaction prior to its termination or maturity date, which may create a possibility of
increased volatility and/or decreased liquidity to the Fund. Upon the expiration or termination of a particular contract, the Fund may wish to retain the Fund&#146;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, which could cause the Fund not to be able to maintain certain desired investment
exposures or not to be able to hedge other investment positions or risks, which could cause losses to the Fund. Furthermore, after such an expiration or termination of a particular contract, the Fund may have fewer counterparties with which to
engage in additional derivative transactions, which could lead to potentially greater counterparty risk exposure to one or more counterparties and which could increase the cost of entering into certain derivatives. In such cases, the Fund may lose
money. </P>
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  <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund may engage in investment strategies, including the use of derivatives, to, among
other things, seek to generate current, distributable income without regard to possible declines in the Fund&#146;s net asset value. The Fund&#146;s income and gain-generating strategies, including certain derivatives strategies, may generate
current, distributable income, even if such strategies could potentially result in declines in the Fund&#146;s net asset value. The Fund&#146;s income and gain-generating strategies, including certain derivatives strategies, may generate current
income and gains taxable as ordinary income sufficient to support monthly 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. equity markets or the
Fund&#146;s debt investments, or arising from its use of derivatives. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Also, suitable derivative and/or hedging transactions may not
be available in all circumstances, and there can be no assurance that the Fund will be able to identify or employ a desirable derivative and/or hedging transaction at any time or from time to time or, if a strategy is used, that it will be
successful. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">As further described below under &#147;Additional Risk Factors in Cleared Derivatives Transactions,&#148; federal legislation
has been recently enacted in the U.S. that provides for new clearing, margin, reporting and registration requirements for participants in the derivatives market. While the ultimate impact is not yet clear, these changes could restrict and/or impose
significant costs or other burdens upon the Fund&#146;s ability to participate in derivatives transactions. Similarly, these changes could impose limits or restrictions on the counterparties with which the Fund engages in derivatives transactions.
As a result, the Fund may be unable to use certain derivative instruments or otherwise execute its investment strategy. These risks may be particularly acute to the extent the Fund use commodity-related derivative instruments. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">For purposes of the Fund&#146;s investment policies and restrictions, the Fund may value derivative instruments at market value, notional
value or full exposure value (i.e., the sum of the notional amount for the contract plus the market value). For example, the Fund may value credit default swaps at full exposure value for purposes of the Fund&#146;s credit quality guidelines because
such value in general better reflects the Fund&#146;s actual economic exposure during the term of the credit default swap agreement. As a result, the Fund may, at times, have notional exposure to an asset class (before netting) that is greater or
lesser than the stated limit or restriction noted in the Fund&#146;s prospectus. In this context, both the notional amount and the market value may be positive or negative depending on whether the Fund is selling or buying protection through the
credit default swap. The manner in which certain securities or other instruments are valued by the Fund for purposes of applying investment policies and restrictions may differ from the manner in which those investments are valued by other types of
investors. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><B><I>Options on Securities and Indexes.</I></B> The Fund may, to the extent specified herein or in the Prospectus, purchase
and sell both put and call options on equity, fixed income or other securities or indexes in standardized contracts traded on foreign or domestic securities exchanges, boards of trade, or similar entities, or quoted on the National Association of
Securities Dealers Automated Quotations (&#147;NASDAQ&#148;) System or on a regulated foreign OTC market, and agreements, sometimes called cash puts, which may accompany the purchase of a new issue of bonds from a dealer. Among other reasons, the
Fund may purchase put options to protect holdings in an underlying or related security against a decline in market value, and may purchase call options to protect against increases in the prices of securities it intends to purchase pending its
ability to invest in such securities in an orderly manner. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">50 </P>


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  <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">An option on a security (or index) is a contract that gives the holder of the option, in
return for a premium, the right to buy from (in the case of a call) or sell to (in the case of a put) the writer of the option the security underlying the option (or the cash value of the index) at a specified exercise price, often at any time
during the term of the option for American options or only at expiration for European options. The writer of an option on a security has the obligation upon exercise of the option to deliver the underlying security upon payment of the exercise price
(in the case of a call) or to pay the exercise price upon delivery of the underlying security (in the case of a put). Certain put options written by the Fund, which counterparties may use as a source of liquidity, may be structured to have an
exercise price that is less than the market value of the underlying securities that would be received by the Fund. Upon exercise, the writer of an option on an index is obligated to pay the difference between the cash value of the index and the
exercise price multiplied by the specified multiplier for the index option. An index is designed to reflect features of a particular financial or securities market, a specific group of financial instruments or securities, or certain economic
indicators. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund will &#147;cover&#148; its obligations when it writes call options or put options. In the case of a call option on a
debt obligation or other security, the option is &#147;covered&#148; if the Fund owns the security underlying the call or has an absolute and immediate right to acquire that security without additional cash consideration (or, if additional cash
consideration is required, cash or other assets determined to be liquid by PIMCO in accordance with procedures approved by the Board of Trustees in such amount are segregated by its custodian or &#147;earmarked&#148;) upon conversion or exchange of
other securities held by the Fund. A call option on a security is also &#147;covered&#148; if the Fund does not hold the underlying security or have the right to acquire it, but the Fund segregates or &#147;earmarks&#148; assets determined to be
liquid by PIMCO in accordance with procedures approved by the Board of Trustees in an amount equal to the value of the underlying security (minus any collateral deposited with a broker-dealer or other financial institution), on a mark-to-market
basis (a so-called &#147;naked&#148; call option). </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">For a call option on an index, the option is covered if the Fund maintains with its
custodian assets determined to be liquid by PIMCO in accordance with procedures approved by the Board of Trustees in an amount equal to the Fund&#146;s net obligation under the option. A call option is also covered if the Fund holds a call on the
same security or index as the call written where the exercise price of the call held is (i)&nbsp;equal to or less than the exercise price of the call written, or (ii)&nbsp;greater than the exercise price of the call written, provided the difference
is maintained by the Fund in segregated or &#147;earmarked&#148; assets determined to be liquid by PIMCO in accordance with procedures approved by the Board of Trustees. A put option on a security or an index is &#147;covered&#148; if the Fund
segregates or &#147;earmarks&#148; assets determined to be liquid by PIMCO in accordance with procedures approved by the Board of Trustees equal to the exercise price. A put option is also covered if the Fund holds a put on the same security or
index as the put written where the exercise price of the put held is (i)&nbsp;equal to or greater than the exercise price of the put written, or (ii)&nbsp;less than the exercise price of the put written, provided the difference is maintained by the
Fund in segregated or &#147;earmarked&#148; assets determined to be liquid by PIMCO in accordance with procedures approved by the Board of Trustees. Obligations under written call and put options so covered will not be construed to be &#147;senior
securities&#148; for purposes of the Fund&#146;s investment restrictions concerning senior securities and borrowings. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">If an option written by the Fund expires unexercised, the Fund realizes a capital gain equal to
the premium received at the time the option was written. If an option purchased by the Fund expires unexercised, the Fund realizes a capital loss equal to the premium paid. Prior to the earlier of exercise or expiration, an exchange-traded option
may be closed out by an offsetting purchase or sale of an option of the same series (type, exchange, underlying security or index, exercise price, and expiration). There can be no assurance, however, that a closing purchase or sale transaction can
be effected when the Fund desires. In addition, the Fund may sell put or call options it has previously purchased, which could result in a net gain or loss depending on whether the amount realized on the sale is more or less than the premium and
other transaction costs paid on the put or call option which is sold. Prior to the exercise or expiration, an option may be closed out by an offsetting purchase or sale of an option of the same series. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund will realize a capital gain from a closing purchase transaction if the cost of the closing option is less than the premium received
from writing the option, or, if it is more, the Fund will realize a capital loss. If the premium received from a closing sale transaction is more than the premium paid to purchase the option, the Fund will realize a capital gain or, if it is less,
the Fund will realize a capital loss. The principal factors affecting the market value of a put or a call option include supply and demand, interest rates, the current market price of the underlying security or index in relation to the exercise
price of the option, the volatility of the underlying security or index, and the time remaining until the expiration date. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The premium
paid for a put or call option purchased by the Fund is an asset of the Fund. The premium received for an option written by the Fund is recorded as a deferred credit. The value of an option purchased or written is marked to market daily and is valued
in accordance with the Fund&#146;s valuation policies and procedures. See &#147;Net Asset Value&#148; below. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund may write
covered straddles consisting of a combination of a call and a put written on the same underlying security. A straddle will be covered when sufficient liquid assets are deposited to meet the Fund&#146;s immediate obligations. The Fund may use the
same liquid assets to cover both the call and put options where the exercise price of the call and put are the same, or the exercise price of the call is higher than that of the put. In such cases, the Fund will also segregate or &#147;earmark&#148;
liquid assets equivalent to the amount, if any, by which the put is &#147;in the money.&#148; </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><B><I>OTC Options</I></B><B>.</B> The
staff of the SEC has taken the position that purchased OTC options and the assets used as cover for written OTC options should generally be treated as illiquid. However, the staff of the SEC has also taken the position that the determination of
whether a particular instrument is liquid should be made under guidelines and standards established by a fund&#146;s board of trustees. The SEC staff has provided examples of factors that may be taken into account in determining whether a particular
instrument should be treated as liquid. Pursuant to policies adopted by the Fund&#146;s Board of Trustees, purchased OTC options and the assets used as cover for OTC options written by the Fund may be treated as liquid under certain circumstances,
such as when PIMCO has the contractual right to terminate or close out the OTC option on behalf of the Fund within seven days. These policies are not fundamental policies of the Fund and may be changed or modified by the Board of Trustees without
the approval of shareholders, provided that any such change or modification will be consistent with applicable positions of the SEC staff. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><B><I>Risks Associated with Options on Securities and Indexes. </I></B>There are several risks associated with transactions in options on
securities and on indexes. For example, there are significant differences between the securities and options markets that could result in an imperfect correlation between </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">52 </P>


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these markets, causing a given transaction not to achieve its objectives. A decision as to whether, when and how to use options involves the exercise of skill and judgment, and even a
well-conceived transaction may be unsuccessful to some degree because of market behavior or unexpected events. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">During the option period,
the covered call writer has, in return for the premium on the option, given up the opportunity to profit from a price increase in the underlying security above the exercise price, but, as long as its obligation as a writer continues, has retained
the risk of loss should the price of the underlying security decline. The writer of an option often has no control over the time when it may be required to fulfill its obligation as a writer of the option. Once an option writer has received an
exercise notice, it cannot effect a closing purchase transaction in order to terminate its obligation under the option and must deliver the underlying security at the exercise price. To the extent the Fund writes a put option, the Fund has assumed
the obligation during the option period to purchase the underlying investment from the put buyer at the option&#146;s exercise price if the put buyer exercises its option, regardless of whether the value of the underlying investment falls below the
exercise price. This means that the Fund that writes a put option may be required to take delivery of the underlying investment and make payment for such investment at the exercise price. This may result in losses to the Fund and may result in the
Fund holding the underlying investment for some period of time when it is disadvantageous to do so. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">If a put or call option purchased by
the Fund is not sold when it has remaining value, and if the market price of the underlying security remains equal to or greater than the exercise price (in the case of a put), or remains less than or equal to the exercise price (in the case of a
call), the Fund will lose its entire investment in the option. Also, where a put or call option on a particular security is purchased to hedge against price movements in a related security, the price of the put or call option may move more or less
than the price of the related security. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">There can be no assurance that a liquid market will exist when the Fund seeks to close out an
option position. If the Fund were unable to close out an option that it had purchased on a security, it would have to exercise the option in order to realize any profit or the option may expire worthless. If the Fund were unable to close out a
covered call option that it had written on a security, it would not be able to sell the underlying security unless the option expired without exercise. As the writer of a covered call option, the Fund forgoes, during the option&#146;s life, the
opportunity to profit from increases in the market value of the security covering the call option above the sum of the premium and the exercise price of the call. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">If trading were suspended in an option purchased by the Fund, the Fund would not be able to close out the option. If restrictions on exercise
were imposed, the Fund might be unable to exercise an option it has purchased. Except to the extent that a call option on an index written by the Fund is covered by an option on the same index purchased by the Fund, movements in the index may result
in a loss to the Fund; however, such losses may be mitigated by changes in the value of the Fund&#146;s securities during the period the option was outstanding. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">To the extent that the Fund writes a call option on a security it holds in its portfolio and intends to use such security as the sole means of
&#147;covering&#148; its obligation under the call option, the Fund has, in return for the premium on the option, given up the opportunity to profit from a price increase in the underlying security above the exercise price during the option period,
but, as long as its obligation under such call option continues, has retained the risk of loss should the price of the underlying security decline. If the Fund were unable to close out such a call option, the Fund would not be able to sell the
underlying security unless the option expired without exercise. </P>
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  <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><B><I>Foreign Currency Options</I></B>. To the extent the Fund invests in foreign
currency-denominated securities, it may buy or sell put and call options on foreign currencies as a hedge against changes in the value of the U.S. dollar (or another currency) in relation to a foreign currency in which the Fund&#146;s securities may
be denominated. In addition, each of the Fund may buy or sell put and call options on foreign currencies either on exchanges or in the OTC market. A put option on a foreign currency gives the purchaser of the option the right to sell a foreign
currency at the exercise price until the option expires. A call option on a foreign currency gives the purchaser of the option the right to purchase the currency at the exercise price until the option expires. Currency options traded on U.S. or
other exchanges may be subject to position limits which may limit the ability of the Fund to reduce foreign currency risk using such options. OTC options differ from traded options in that they are bilateral contracts with price and other terms
negotiated between buyer and seller, and generally do not have as much market liquidity as exchange-traded options. Under definitions adopted by the CFTC and SEC, many foreign currency options are considered swaps for certain purposes, including
determination of whether such instruments need to be exchange-traded and centrally cleared as discussed further in &#147;Risks of Potential Government Regulation of Derivatives.&#148; </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><B><I>Futures Contracts and Options on Futures Contracts</I></B>. A futures contract is an agreement to buy or sell a security or other asset
for a set price on a future date. These contracts are traded on exchanges, so that, in most cases, a party can close out its position on the exchange for cash, without delivering the underlying security or other underlying asset. An option on a
futures contract gives the holder of the option the right to buy or sell a position in a futures contract from or to the writer of the option, at a specified price and on or before a specified expiration date. The Fund may invest in futures or
options on futures with respect to interest rates, foreign currencies, securities or commodity indexes. The Fund may invest in foreign exchange futures contracts and options thereon (&#147;futures options&#148;) that are traded on a U.S. or foreign
exchange or board of trade, or similar entity, or quoted on an automated quotation system as an adjunct to their securities activities. In addition, the Fund may purchase and sell futures contracts on various securities indexes (&#147;Index
Futures&#148;) and related options for hedging purposes and for investment purposes. The Fund purchase and sale of Index Futures is limited to contracts and exchanges which have been approved by the CFTC. Through the use of Index Futures and related
options, the Fund may diversify risk in its portfolio without incurring the substantial brokerage costs which may be associated with investment in the securities of multiple issuers. The Fund may also avoid potential market and liquidity problems
which may result from increases in positions already held by the Fund. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">An interest rate, commodity, foreign currency or index
futures contract provides for the future sale or purchase of a specified quantity of a financial instrument, commodity, foreign currency or the cash value of an index at a specified price and time. An Index Future is an agreement pursuant to which a
party agrees to take or make delivery of an amount of cash equal to the difference between the value of a securities index (&#147;Index&#148;) at the close of the last trading day of the contract and the price at which the index contract was
originally written. Although the value of an Index might be a function of the value of certain specified securities, no physical delivery of these securities is made. A unit is the value of the relevant Index from time to time. Entering into a
contract to buy units is commonly referred to as buying or purchasing a contract or holding a long position in an Index. Index Futures contracts can be traded through all major commodity brokers. The Fund will
</P>
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ordinarily be able to close open positions on the futures exchange on which Index Futures are then traded at any time up to and including the expiration day. As described below, the Fund will be
required to segregate initial margin in the name of the futures broker upon entering into an Index Future. Variation margin will be paid to and received from the broker on a daily basis as the contracts are marked to market. For example, when the
Fund has purchased an Index Future and the price of the relevant Index has risen, that position will have increased in value and the Fund will receive from the broker a variation margin payment equal to that increase in value. Conversely, when the
Fund has purchased an Index Future and the price of the relevant Index has declined, the position would be less valuable and the Fund would be required to make a variation margin payment to the broker. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund may close open positions on the futures exchanges on which Index Futures are traded at any time up to and including the expiration
day. All positions which remain open at the close of the last business day of the contract&#146;s life are required to settle on the next business day (based upon the value of the relevant index on the expiration day), with settlement made with the
appropriate clearing house. Positions in Index Futures may be closed out by the Fund only on the futures exchanges upon which the Index Futures are then traded. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">A public market exists in futures contracts covering a number of indexes as well as financial instruments and foreign currencies, including,
but not limited to: the S&amp;P 500; the S&amp;P Midcap 400; the Nikkei 225; the Markit CDX credit index; the iTraxx credit index; U.S. Treasury bonds; U.S. Treasury notes; U.S. Treasury bills; 90-day commercial paper; bank certificates of deposit;
Eurodollar certificates of deposit; the Australian dollar; the Canadian dollar; the British pound; the Japanese yen; the Swiss franc; the Mexican peso; and certain multinational currencies, such as the euro. It is expected that other futures
contracts will be developed and traded in the future. Certain futures contracts on indexes, financial instruments or foreign currencies may represent new investment products that lack track records. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund might use financial futures contracts to hedge against anticipated changes in interest rates that might adversely affect either the
value of the Fund&#146;s securities or the price of the securities which the Fund intends to purchase. The Fund&#146;s hedging activities may include sales of futures contracts as an offset against the effect of expected increases in interest rates,
and purchases of futures contracts as an offset against the effect of expected declines in interest rates. Although other techniques could be used to reduce the Fund&#146;s exposure to interest rate fluctuations, the Fund may be able to hedge its
exposure more effectively and perhaps at a lower cost by using futures contracts and futures options. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund may also invest in
commodity futures contracts and options thereon. A commodity futures contract is an agreement to buy or sell a commodity, such as an energy, agricultural or metal commodity at a later date at a price and quantity agreed-upon when the contract is
bought or sold. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund may purchase and write call and put futures options. Futures options possess many of the same characteristics as
options on securities and indexes (discussed above). A futures option gives the holder the right, in return for the premium paid, to assume a long position (call) or short position (put) in a futures contract at a specified exercise price at any
time during the period of the option. Upon exercise of a call option, the holder acquires a long position in the futures contract and the writer is assigned the opposite short position. In the case of a put option, the opposite is true. A call
option is &#147;in the money&#148; if the value of the futures contract that is the subject of the option exceeds the exercise price. A put option is &#147;in the money&#148; if the exercise price exceeds the value of the futures contract that is
the subject of the option. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">When a purchase or sale of a futures contract is made by the Fund, the Fund is required to
segregate a specified amount of assets determined to be liquid by PIMCO in accordance with procedures approved by the Board of Trustees (&#147;initial margin&#148;). The margin required for a futures contract is set by the exchange on which the
contract is traded and may be modified during the term of the contract. Margin requirements on foreign exchanges may be different than U.S. exchanges. The initial margin is in the nature of a performance bond or good faith deposit on the futures
contract which is returned to the Fund upon termination of the contract, assuming all contractual obligations have been satisfied. The Fund expects to earn interest income on its initial margin deposits. A futures contract held by the Fund is valued
daily at the official settlement price of the exchange on which it is traded. Each day the Fund pays or receives cash, called &#147;variation margin,&#148; equal to the daily change in value of the futures contract. This process is known as
&#147;marking to market.&#148; Variation margin does not represent a borrowing or loan by the Fund but is instead a settlement between the Fund and the broker of the amount one would owe the other if the futures contract expired. In computing daily
net asset value, the Fund will mark to market its open futures positions. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund is also required to deposit and maintain margin with
respect to put and call options on futures contracts written by it. Such margin deposits will vary depending on the nature of the underlying futures contract (and the related initial margin requirements), the current market value of the option, and
other futures positions held by the Fund. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Although some futures contracts call for making or taking delivery of the underlying securities
or commodities, generally these obligations are closed out prior to delivery by offsetting purchases or sales of matching futures contracts (i.e., with the same exchange, underlying security or index, and delivery month). Closing out a futures
contract sale is effected by purchasing an offsetting futures contract for the same aggregate amount of the specific type of financial instrument or commodity with the same delivery date. If an offsetting purchase price is less than the original
sale price, the Fund realizes a capital gain, or if it is more, the Fund realizes a capital loss. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Conversely, if an offsetting sale price
is more than the original purchase price, the Fund realizes a capital gain, or if it is less, the Fund realizes a capital loss. Any transaction costs must also be included in these calculations. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund may write covered straddles consisting of a call and a put written on the same underlying futures contract. A straddle will be
covered when sufficient assets are deposited to meet the Fund&#146;s immediate obligations. The Fund may use the same liquid assets to cover both the call and put options where the exercise price of the call and put are the same, or the exercise
price of the call is higher than that of the put. In such cases, the Fund will also segregate liquid assets equivalent to the amount, if any, by which the put is &#147;in the money.&#148; </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><B><I>Limitations on Use of Futures and Futures Options.</I></B> When purchasing a futures contract, the Fund may but is not required to
&#147;earmark&#148; or maintain with its custodian (and mark-to-market on a daily basis) assets determined to be liquid by PIMCO in accordance with procedures approved by the Board of Trustees that, when added to the amounts deposited with a futures
commission merchant as margin, are equal to the market value of the futures contract. Alternatively, the Fund may &#147;cover&#148; its position by purchasing a put option on the same futures contract with a strike price as high or higher than the
price of the contract held by the Fund. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">When selling a futures contract, the Fund may but is not required to maintain with its custodian
(and mark-to-market on a daily basis) assets determined to be liquid by PIMCO in accordance with procedures approved by the Board of Trustees that are equal to the market value of the instruments underlying the contract. Alternatively, the Fund may
&#147;cover&#148; its position by owning the instruments underlying the contract (or, in the case of an Index Future, a portfolio with a volatility substantially similar to that of the Index on which the futures contract is based), or by holding a
call option permitting the Fund to purchase the same futures contract at a price no higher than the price of the contract written by the Fund (or at a higher price if the difference is maintained in liquid assets with the Fund&#146;s custodian).
</P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">When selling a call option on a futures contract, the Fund may but is not required to &#147;earmark&#148; or maintain with its custodian
(and mark-to-market on a daily basis) assets determined to be liquid by PIMCO in accordance with procedures approved by the Board of Trustees that, when added to the amounts deposited with a futures commission merchant as margin, equal the total
market value of the futures contract underlying the call option. Alternatively, the Fund may cover its position by entering into a long position in the same futures contract at a price no higher than the strike price of the call option, by owning
the instruments underlying the futures contract, or by holding a separate call option permitting the Fund to purchase the same futures contract at a price not higher than the strike price of the call option sold by the Fund. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">When selling a put option on a futures contract, the Fund may but is not required to &#147;earmark&#148; or maintain with its custodian (and
mark-to-market on a daily basis) assets determined to be liquid by PIMCO in accordance with procedures approved by the Board of Trustees that equal the purchase price of the futures contract, less any margin on deposit. Alternatively, the Fund may
cover the position either by entering into a short position in the same futures contract, or by owning a separate put option permitting it to sell the same futures contract so long as the strike price of the purchased put option is the same or
higher than the strike price of the put option sold by the Fund. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">With respect to futures contracts that &#147;physically
settle,&#148; the Fund may cover the open position by setting aside or &#147;earmarking&#148; liquid assets in an amount equal to the full notional value of the futures contract. With respect to futures that are required to &#147;cash settle,&#148;
however, the Fund is permitted to set aside or &#147;earmark&#148; liquid assets in an amount equal to the Fund&#146;s daily mark-to-market (net) obligation, if any, (in other words, the Fund&#146;s daily net liability, if any) rather than the full
notional value of the futures contract. By setting aside or &#147;earmarking&#148; assets equal to only its net obligation under cash-settled futures, the Fund will have the ability to utilize these contracts to a greater extent than if the Fund
were required to segregate or &#147;earmark&#148; assets equal to the full notional value of the futures contract. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">To the extent
that securities with maturities greater than one year are used to segregate liquid assets to cover the Fund&#146;s obligations under futures contracts and related options, such use will not eliminate the leverage risk arising from such use, which
may tend to exaggerate the effect on net asset value of any increase or decrease in the market value of the Fund&#146;s portfolio, and may require liquidation of portfolio positions when it is not advantageous to do so. However, any potential risk
of leverage resulting from the use of securities with maturities greater than one year may be mitigated by the overall duration limit on the Fund&#146;s portfolio securities. Thus, the use of a longer term security may require the Fund to hold
offsetting short-term securities to balance the Fund&#146;s portfolio such that the Fund&#146;s duration does not exceed the maximum permitted for the Fund in the Prospectus. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund will only enter into futures contracts and futures options which are standardized and
traded on a U.S. or foreign exchange, board of trade, or similar entity, or quoted on an automated quotation system, or in the case of futures options, for which an established over-the-counter market exists. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The requirements for qualification as a regulated investment company also may limit the extent to which the Fund may enter into futures,
futures options or forward contracts. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><B><I>Commodity Pool Operators and Commodity Trading Advisors</I></B>. The CFTC has adopted
regulations that subject registered investment companies and their investment advisers to regulation by the CFTC if the registered investment company invests more than a prescribed level of its liquidation value in futures, options on futures or
commodities, swaps, or other financial instruments regulated under the Commodity Exchange Act (&#147;CEA&#148;) and the rules thereunder (&#147;commodity interests&#148;), or if the Fund markets itself as providing investment exposure to such
instruments. The Investment Manager is registered with the CFTC as a &#147;commodity pool operator&#148; (&#147;CPO&#148;) however, with respect to the Fund, the Investment Manager has claimed an exclusion from registration as a CPO pursuant to CFTC
Rule 4.5. For the Investment Manager to remain eligible for this exclusion, the Fund must comply with certain limitations, including limits on its ability to use any commodity interests and limits on the manner in which the Fund holds out its use of
such commodity interests. These limitations may restrict the Fund&#146;s ability to pursue its investment objectives and strategies, increase the costs of implementing its strategies, result in higher expenses for the Fund, and/or adversely affect
the Fund&#146;s total return. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><B><I>Risks Associated with Futures and Futures Options</I></B>. There are several risks associated
with the use of futures contracts and futures options as hedging techniques. A purchase or sale of a futures contract may result in losses in excess of the amount invested in the futures contract. Some of the risk may be caused by an imperfect
correlation between movements in the price of the futures contract and the price of the security or other investment being hedged. The hedge will not be fully effective where there is such imperfect correlation. Also, an incorrect correlation could
result in a loss on both the hedged securities in the Fund and the hedging vehicle, so that the portfolio return might have been greater had hedging not been attempted. For example, if the price of the futures contract moves more than the price of
the hedged security, the Fund would experience either a loss or gain on the future which is not completely offset by movements in the price of the hedged securities. In addition, there are significant differences between the securities and futures
markets that could result in an imperfect correlation between the markets, causing a given hedge not to achieve its objective. The degree of imperfection of correlation depends on circumstances such as variations in speculative market demand for
futures and futures options on securities, including technical influences in futures trading and futures options, and differences between the financial instruments being hedged and the instruments underlying the standard contracts available for
trading in such respects as interest rate levels, maturities, and creditworthiness of issuers. To compensate for imperfect correlations, the Fund may purchase or sell futures contracts in a greater dollar amount than the hedged securities if the
volatility of the hedged securities is historically greater than the volatility of the futures contracts. Conversely, the Fund may purchase or sell fewer contracts if the volatility of the price of the hedged securities is historically less than
that of the futures contracts. The risk of imperfect correlation generally tends to diminish as the maturity date of the futures contract approaches. A decision as to whether, when and how to hedge involves the </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">58 </P>


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  <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">
exercise of skill and judgment, and even a well-conceived hedge may be unsuccessful to some degree because of market behavior or unexpected interest rate trends. Also, suitable hedging
transactions may not be available in all circumstances. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Additionally, the price of Index Futures may not correlate perfectly with
movement in the relevant index due to certain market distortions. First, all participants in the futures market are subject to margin deposit and maintenance requirements. Rather than meeting additional margin deposit requirements, investors may
close futures contracts through offsetting transactions which could distort the normal relationship between the index and futures markets. Second, the deposit requirements in the futures market are less onerous than margin requirements in the
securities market, and as a result, the futures market may attract more speculators than does the securities market. Increased participation by speculators in the futures market may also cause temporary price distortions. In addition, trading hours
for foreign stock Index Futures may not correspond perfectly to hours of trading on the foreign exchange to which a particular foreign stock Index Future relates. This may result in a disparity between the price of Index Futures and the value of the
relevant index due to the lack of continuous arbitrage between the Index Futures price and the value of the underlying index. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Futures
exchanges may limit the amount of fluctuation permitted in certain futures contract prices during a single trading day. The daily limit establishes the maximum amount that the price of a futures contract may vary either up or down from the previous
day&#146;s settlement price at the end of the current trading session. Once the daily limit has been reached in a futures contract subject to the limit, no more trades may be made on that day at a price beyond that limit. The daily limit governs
only price movements during a particular trading day and therefore does not limit potential losses because the limit may work to prevent the liquidation of unfavorable positions. For example, futures prices have occasionally moved to the daily limit
for several consecutive trading days with little or no trading, thereby preventing prompt liquidation of positions and subjecting some holders of futures contracts to substantial losses. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">There can be no assurance that a liquid market will exist at a time when the Fund seeks to close out a futures or a futures option position,
and that the Fund would remain obligated to meet margin requirements until the position is closed. In addition, many of the contracts discussed above are relatively new instruments without a significant trading history. As a result, there can be no
assurance that an active secondary market will develop or continue to exist. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><B><I>Risks Associated with Commodity Futures Contracts.
</I></B>There are several additional risks associated with transactions in commodity futures contracts. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:5%; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><I>Storage</I>.
Unlike the financial futures markets, in the commodity futures markets there are costs of physical storage associated with purchasing the underlying commodity. The price of the commodity futures contract will reflect the storage costs of purchasing
the physical commodity, including the time value of money invested in the physical commodity. To the extent that the storage costs for an underlying commodity change while the Fund is invested in futures contracts on that commodity, the value of the
futures contract may change proportionately. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:5%; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><I>Reinvestment</I>. In the commodity futures markets, producers of the
underlying commodity may decide to hedge the price risk of selling the commodity by selling futures contracts today to lock in the price of the commodity at delivery tomorrow. In order to induce speculators to purchase the other side of the same
futures contract, the commodity producer generally must sell </P>
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the futures contract at a lower price than the expected future spot price. Conversely, if most hedgers in the futures market are purchasing futures contracts to hedge against a rise in prices,
then speculators will only sell the other side of the futures contract at a higher futures price than the expected future spot price of the commodity. The changing nature of the hedgers and speculators in the commodity markets will influence whether
futures prices are above or below the expected future spot price, which can have significant implications for the Fund. If the nature of hedgers and speculators in futures markets has shifted when it is time for the Fund to reinvest the proceeds of
a maturing contract in a new futures contract, the Fund might reinvest at higher or lower futures prices, or choose to pursue other investments. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:5%; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><I>Other Economic Factors.</I> The commodities which underlie commodity futures contracts may be subject to additional
economic and non-economic variables, such as drought, floods, weather, livestock disease, embargoes, tariffs, and international economic, political and regulatory developments. These factors may have a larger impact on commodity prices and
commodity-linked instruments, including futures contracts, than on traditional securities. Certain commodities are also subject to limited pricing flexibility because of supply and demand factors. Others are subject to broad price fluctuations as a
result of the volatility of the prices for certain raw materials and the instability of supplies of other materials. These additional variables may create additional investment risks which subject the Fund&#146;s investments to greater volatility
than investments in traditional securities. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><B><I>Additional Risks of Options on Securities, Futures Contracts, Options on Futures
Contracts and Forward Currency Exchange Contracts and Options Thereon.</I></B> Options on securities, futures contracts, options on futures contracts, and options on currencies may be traded on non-U.S. exchanges. Such transactions may not be
regulated as effectively as similar transactions in the United States; may not involve a clearing mechanism and related guarantees; and are subject to the risk of governmental actions affecting trading in, or the prices of, non-U.S. securities. Some
non-U.S. exchanges may be principal markets so that no common clearing facility exists and a trader may look only to the broker for performance of the contract. The value of such positions also could be adversely affected by (i)&nbsp;other complex
non-U.S. political, legal and economic factors, (ii)&nbsp;lesser availability than in the United States of data on which to make trading decisions, (iii)&nbsp;delays in the Fund&#146;s ability to act upon economic events occurring in non-U.S.
markets during non-business hours in the United States, (iv)&nbsp;the imposition of different exercise and settlement terms and procedures and margin requirements than in the United States and (v)&nbsp;lesser trading volume. In addition, to the
extent that the Fund does not hedge against fluctuations in the exchange rate between the U.S. dollar and the currencies in which trading is done on non-U.S. exchanges, any profits that the Fund might realize in trading could be eliminated by
adverse changes in the exchange rate, or the Fund could incur losses as a result of those changes. The value of some derivative instruments in which the Fund may invest may be particularly sensitive to changes in prevailing interest rates, and, like
the other investments of the Fund, the ability of the Fund to successfully utilize these instruments may depend in part upon the ability of PIMCO to forecast interest rates and other economic factors correctly. If PIMCO incorrectly forecasts such
factors and has taken positions in derivative instruments contrary to prevailing market trends, the Fund could suffer losses. In addition, the Fund&#146;s use of such instruments may cause the Fund to realize higher amounts of short-term capital
gains (generally taxed to shareholders at ordinary income tax rates) than if the Fund had not used such instruments. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><B><I>Swap
Agreements and Options on Swap Agreements</I></B>. The Fund may engage in swap transactions, including, but not limited to, swap agreements on interest rates, security or commodity indexes, </P>
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specific securities and commodities, and credit and event-linked swaps. To the extent the Fund may invest in foreign currency denominated securities, it may also invest in currency exchange rate
swap agreements. The Fund may also enter into options on swap agreements (&#147;swaptions&#148;). </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund may enter into swap
transactions for any legal purpose consistent with its investment objectives and policies, such as attempting to obtain or preserve a particular return or spread at a lower cost than obtaining a return or spread through purchases and/or sales of
instruments in other markets, to protect against currency fluctuations, as a duration management technique, to protect against any increase in the price of securities the Fund anticipates purchasing at a later date, or to gain exposure to certain
markets in a more cost-efficient manner. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Swap agreements are bilateral contracts entered into primarily by institutional investors for
periods ranging from a few weeks to a number of years. Swap agreements are individually negotiated and structured to include exposure to a variety of types of investments or market factors. In a standard &#147;swap&#148; transaction, two parties
agree to exchange the returns (or differentials in rates of return) earned or realized on particular predetermined investments or instruments, which may be adjusted for an interest factor. The gross returns to be exchanged or &#147;swapped&#148;
between the parties are generally calculated with respect to a &#147;notional amount,&#148; such as the return on or increase in value of a particular dollar amount invested at a particular interest rate, in a particular foreign currency, or in a
&#147;basket&#148; of securities or commodities representing a particular index. Forms of swap agreements include interest rate caps, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest
rates exceed a specified rate, or &#147;cap&#148;; interest rate floors, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates fall below a specified rate, or &#147;floor&#148;; and
interest rate collars, under which a party sells a cap and purchases a floor or vice versa in an attempt to protect itself against interest rate movements exceeding given minimum or maximum levels. Consistent with the Fund&#146;s investment
objectives and general investment policies, certain of the Fund may invest in commodity swap agreements. For example, an investment in a commodity swap agreement may involve the exchange of floating-rate interest payments for the total return on a
commodity index. In a total return commodity swap, the Fund will receive the price appreciation of a commodity index, a portion of the index, or a single commodity in exchange for paying an agreed-upon fee. If the commodity swap is for one period,
the Fund may pay a fixed fee, established at the outset of the swap. However, if the term of the commodity swap is more than one period, with interim swap payments, the Fund may pay an adjustable or floating fee. With a &#147;floating&#148; rate,
the fee may be pegged to a base rate, such as the London Interbank Offered Rate, and is adjusted each period. Therefore, if interest rates increase over the term of the swap contract, the Fund may be required to pay a higher fee at each swap reset
date. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">A swaption is a contract that gives a counterparty the right (but not the obligation) in return for payment of a premium, to enter
into a new swap agreement or to shorten, extend, cancel or otherwise modify an existing swap agreement, at some designated future time on specified terms. The Fund may write (sell) and purchase put and call swaptions. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Most swap agreements entered into by the Fund would calculate the obligations of the parties to the agreement on a &#147;net basis.&#148;
Consequently, the Fund&#146;s current obligations (or rights) under a swap agreement will generally be equal only to the net amount to be paid or received under the agreement based on the relative values of the positions held by each party to the
agreement (the &#147;net amount&#148;). The Fund&#146;s current obligations under a swap agreement will be accrued daily (offset against any amounts owed to the Fund) and any accrued but unpaid net amounts owed to a
</P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">61 </P>


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swap counterparty will be covered by the segregation of assets determined to be liquid by PIMCO in accordance with procedures approved by the Board of Trustees, to avoid any potential leveraging
of the Fund&#146;s portfolio. Obligations under swap agreements so covered will not be construed to be &#147;senior securities&#148; for purposes of the Fund&#146;s investment restriction concerning senior securities and borrowings. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund also may enter into OTC and cleared credit default swap agreements. The credit default swap agreement may reference one or more debt
securities or obligations that are not currently held by the Fund. The protection &#147;buyer&#148; in an OTC credit default contract is generally obligated to pay the protection &#147;seller&#148; an upfront or a periodic stream of payments over
the term of the contract until a credit event, such as a default, on a reference obligation has occurred. If a credit event occurs, the seller generally must pay the buyer the &#147;par value&#148; (full notional value) of the swap in exchange for
an equal face amount of deliverable obligations of the reference entity described in the swap, or the seller may be required to deliver the related net cash amount if the swap is cash settled. The Fund may be either the buyer or seller in the
transaction. If the Fund is a buyer and no credit event occurs, the Fund may recover nothing if the swap is held through its termination date. However, if a credit event occurs, the buyer may receive the full notional value of the swap in exchange
for an equal face amount of deliverable obligations of the reference entity whose value may have significantly decreased. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">As a seller,
the Fund generally receives an upfront payment or a fixed rate of income throughout the term of the swap provided that there is no credit event. As the seller, the Fund would effectively add leverage to its portfolio because, in addition to its
total net assets, the Fund would be subject to investment exposure on the notional amount of the swap. The spread of a credit default swap is the annual amount the protection buyer must pay the protection seller over the length of the contract,
expressed as a percentage of the notional amount. When spreads rise, market perceived credit risk rises and when spreads fall, market perceived credit risk falls. Wider credit spreads and decreasing market values, when compared to the notional
amount of the swap, represent a deterioration of the credit soundness of the issuer of the reference obligation and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. For credit
default swap agreements on asset-backed securities and credit indices, the quoted market prices and resulting values, as well as the annual payment rate, serve as an indication of the current status of the payment/performance risk. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Credit default swap agreements sold by the Fund 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 illiquidity risk, and with respect to OTC credit default swaps, counterparty risk and credit risk. The Fund will enter into uncleared credit default swap agreements only
with counterparties that meet certain standards of creditworthiness. 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, 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. The Fund&#146;s
obligations under a credit default swap agreement will be accrued daily (offset against any amounts owing to the Fund). In connection with credit default swaps in which the Fund is the buyer, the Fund will segregate or &#147;earmark&#148; cash or
assets determined to be liquid by PIMCO in accordance with procedures established by the Board of Trustees, or enter into certain offsetting positions, with a value at least equal to the Fund&#146;s exposure (any accrued but unpaid net amounts owed
by the Fund to any counterparty), on a mark-to-market basis. In </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">62 </P>


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connection with credit default swaps in which the Fund is the seller, the Fund will segregate or &#147;earmark&#148; cash or assets determined to be liquid by PIMCO in accordance with procedures
established by the Board of Trustees, or enter into offsetting positions, with a value at least equal to the full notional amount of the Fund&#146;s obligation under the swap. Such segregation or &#147;earmarking&#148; seeks to ensure that the Fund
has assets available to satisfy its obligations with respect to the transaction and could have the effect of limiting any potential leveraging of the Fund&#146;s portfolio. Such segregation or &#147;earmarking&#148; will not limit the Fund&#146;s
exposure to loss. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Recent legislative and regulatory reforms, including the Dodd-Frank Wall Street Reform and Consumer Protection Act
(the &#147;Dodd-Frank Act&#148;), have resulted in new regulation of swap agreements, including clearing, margin, reporting, recordkeeping and registration requirements for certain types of swaps contracts and other derivatives, including among
others interest rate swaps and credit default swaps. Because these requirements are new and evolving, and certain of the rules are not yet final, its ultimate impact remains unclear. New regulations could, among other things, restrict the
Fund&#146;s ability to engage in swap transactions (for example, by making certain types of swap transactions no longer available to the Fund) and/or increase the costs of such swap transactions (for example, by increasing margin or capital
requirements), and the Fund may as a result be unable to execute its investment strategies in a manner PIMCO might otherwise choose. New rules under the Dodd-Frank Act require certain over-the-counter derivatives, including certain interest rate
swaps and certain credit default swaps, to be executed on a regulated market and cleared through a central counterparty, which may result in increased margin requirements and costs for the Fund. It is also unclear how the regulatory changes will
affect counterparty risk. See &#147;Risks of Potential Government Regulation of Derivatives&#148; and &#147;Additional Risk Factors in Cleared Derivatives Transactions&#148; below for further detail. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Additionally, U.S. regulators recently issued final rules under the Dodd-Frank Act that establish minimum margin and capital requirements for
uncleared OTC derivatives transactions that will have a material impact on the Fund&#146;s use of uncleared derivatives. These rules will impose minimum margin requirements on derivatives transactions between the Fund and their swap counterparties
and may increase the amount of margin the Fund is required to provide. They will impose regulatory requirements on the timing of transferring margin, which may accelerate the Fund&#146;s current margin process. They will also effectively require
changes to typical derivatives margin documentation. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Whether the Fund&#146;s use of swap agreements or swaptions will be successful
in furthering its investment objectives will depend on PIMCO&#146;s ability to predict correctly whether certain types of investments are likely to produce greater returns than other investments. Moreover, the Fund bears the risk of loss of the
amount expected to be received under a swap agreement in the event of the default or bankruptcy of a swap agreement counterparty. The Fund will enter into OTC swap agreements only with counterparties that meet certain standards of creditworthiness.
Certain restrictions imposed on the Fund by the Code may limit the Fund&#146;s ability to use swap agreements. It is possible that developments in the swaps market, including additional government regulation, could adversely affect the Fund&#146;s
ability to terminate existing swap agreements or to realize amounts to be received under such agreements. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Like most other
investments, swap agreements are subject to the risk that the market value of the instrument will change in a way detrimental to the Fund&#146;s interest. The Fund bears the risk of future market trends or the values of assets, reference rates,
indexes, or other economic factors. If the Fund uses a swap as a hedge against, or as a substitute for, a portfolio investment, the Fund </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">63 </P>


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will be exposed to the risk that the swap will have or will develop imperfect or no correlation with the portfolio investment. This could cause substantial losses for the Fund. While hedging
strategies involving swap instruments can reduce the risk of loss, they can also reduce the opportunity for gain or even result in losses by offsetting favorable price movements in other Fund investments. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Many swaps are complex and often valued subjectively. Many over-the-counter derivatives are complex and their valuation often requires
modeling and judgment, which increases the risk of mispricing or incorrect valuation. The pricing models used may not produce valuations that are consistent with the values the Fund realizes when it closes or sells an over-the-counter derivative.
Valuation risk is more pronounced when the Fund enters into over-the-counter derivatives with specialized terms because the market value of those derivatives in some cases is determined in part by reference to similar derivatives with more
standardized terms. Incorrect valuations may result in increased cash payment requirements to counterparties, undercollateralization and/or errors in calculation of the Fund&#146;s net asset value. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Swaps are highly specialized instruments that require investment techniques, risk analyses, and tax planning different from those associated
with traditional investments. The use of a swap requires an understanding not only of the referenced asset, reference rate, or index but also of the swap itself, without the benefit of observing the performance of the swap under all possible market
conditions. Swap agreements may be subject to liquidity risk, which exists when a particular swap is difficult to purchase or sell. If a swap transaction is particularly large or if the relevant market is illiquid (as is the case with many OTC
swaps), it may not be possible to initiate a transaction or liquidate a position at an advantageous time or price, which may result in significant losses. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Because OTC swap agreements are bilateral contracts that may be subject to contractual restrictions on transferability and because they may
have terms of greater than seven days, swap agreements may be considered to be illiquid. To the extent that a swap is not liquid, it may not be possible to initiate a transaction or liquidate a position at an advantageous time or price, which may
result in significant losses. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Moreover, the Fund bears the risk of loss of the amount expected to be received under a swap agreement
in the event of the default or bankruptcy of a swap agreement counterparty. The Fund will enter into swap agreements only with counterparties that meet certain standards of creditworthiness. When a counterparty&#146;s obligations are not fully
secured by collateral, then the Fund is essentially an unsecured creditor of the counterparty. If the counterparty defaults, the Fund will have contractual remedies, but there is no assurance that a counterparty will be able to meet its obligations
pursuant to such contracts or that, in the event of default, the Fund will succeed in enforcing contractual remedies. Counterparty risk still exists even if a counterparty&#146;s obligations are secured by collateral because the Fund&#146;s interest
in collateral may not be perfected or additional collateral may not be promptly posted as required. Counterparty risk also may be more pronounced if a counterparty&#146;s obligations exceed the amount of collateral held by the Fund (if any), the
Fund is unable to exercise its interest in collateral upon default by the counterparty, or the termination value of the instrument varies significantly from the marked-to-market value of the instrument. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Depending on the terms of the particular option agreement, the Fund will generally incur a greater degree of risk when it writes a swaption
than it will incur when it purchases a swaption. When the Fund purchases a swaption, it risks losing only the amount of the premium it has paid should it decide to let the option expire unexercised. However, when the Fund writes a swaption, upon
exercise of the option the Fund will become obligated according to the terms of the underlying agreement. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">64 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Title VII of the Dodd-Frank Act establishes a framework for the regulation of the OTC swap
markets outlining the joint responsibility of the CFTC and the SEC in regulating swaps. The CFTC is responsible for the regulation of swaps, the SEC is responsible for the regulation of security-based swaps and jointly they are both responsible for
the regulation of mixed swaps. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><B><I>Structured Notes</I></B>. The Fund may invest without limit in &#147;structured&#148; notes,
which are privately negotiated debt obligations where the principal and/or interest is determined by reference to the performance of a benchmark asset, market or interest rate, such as selected securities, an index of securities or specified
interest rates, or the differential performance of two assets or markets, such as indexes reflecting bonds. Depending on the terms of the note, the Fund may forgo all or part of the interest and principal that would be payable on a comparable
conventional note. The rate of return on structured notes may be determined by applying a multiplier to the performance or differential performance of the referenced index(es) or other asset(s). Application of a multiplier involves leverage which
will serve to magnify the potential for gain and the risk of loss. The Fund may use structured notes to add leverage to the portfolio and for investment as well as risk management purposes. Like other sophisticated strategies, the Fund&#146;s use of
structured notes may not work as intended. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><B><I>Risks of Potential Government Regulation of Derivatives.</I></B> It is possible that
government regulation of various types of derivative instruments, including futures and swap agreements, may limit or prevent the Fund from using such instruments as a part of its investment strategy, and could ultimately prevent the Fund from being
able to achieve its investment objectives. It is impossible to fully predict the effects of past, present or future legislation and regulation in this area, but the effects could be substantial and adverse. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The futures markets are subject to comprehensive statutes, regulations, and margin requirements. In addition, the SEC, CFTC and the exchanges
are authorized to take extraordinary actions in the event of a market emergency, including, for example, the implementation or reduction of speculative position limits, the implementation of higher margin requirements, the establishment of daily
price limits and the suspension of trading. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The regulation of swaps and futures transactions in the U.S. is a rapidly changing area of
law and is subject to modification by government and judicial action. There is a possibility of future regulatory changes altering, perhaps to a material extent, the nature of an investment in the Fund or the ability of the Fund to continue to
implement its investment strategies. In particular, the Dodd-Frank Act sets forth a legislative framework for OTC derivatives, such as swaps, in which the Fund may invest. Title VII of the Dodd-Frank Act makes broad changes to the OTC derivatives
market, grants significant new authority to the SEC and the CFTC to regulate OTC derivatives and market participants, and, among other things, requires clearing of many OTC derivatives transactions and imposes minimum margin and capital requirements
on uncleared OTC derivatives transactions. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">In addition, in December 2015, the SEC proposed new regulations applicable to registered
investment companies&#146; use of derivatives and related instruments. If adopted as proposed, these regulations could significantly limit or impact the Fund&#146;s ability to invest in derivatives and other instruments, limit the Fund&#146;s
ability to employ certain strategies that use such instruments and/or adversely affect the Fund&#146;s performance, efficiency in implementing its strategy, liquidity and/or ability to pursue its investment objectives. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">65 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><B><I>Additional Risk Factors in Cleared Derivatives Transactions. </I></B>Under recently adopted
rules and regulations, transactions in some types of swaps (including interest rate swaps and credit default index swaps on North American and European indices) are required to be centrally cleared, and additional types of swaps may be required to
be centrally cleared in the future. In a cleared derivatives transaction, the Fund&#146;s counterparty is a clearing house, rather than a bank or broker. Since the Fund is not a member of clearing houses and only members of a clearing house can
participate directly in the clearing house, the Fund will hold cleared derivatives through accounts at clearing members. In cleared derivatives transactions, the Fund will make payments (including margin payments) to and receive payments from a
clearing house through their accounts at clearing members. Clearing members guarantee performance of their clients&#146; obligations to the clearing house. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">In many ways, centrally cleared derivative arrangements are less favorable to mutual funds than bilateral arrangements. For example, the Fund
may be required to provide greater amounts of margin for cleared derivatives transactions than for bilateral derivatives transactions. Also, in contrast to bilateral derivatives transactions, following a period of notice to the Fund, a clearing
member generally can require termination of existing cleared derivatives transactions at any time or increases in margin requirements above the margin that the clearing member required at the beginning of a transaction. Clearing houses also have
broad rights to increase margin requirements for existing transactions or to terminate transactions at any time. Any increase in margin requirements or termination by the clearing member or the clearing house could interfere with the ability of the
Fund to pursue its investment strategy. Further, any increase in margin requirements by a clearing member could also expose the Fund to greater credit risk to its clearing member, because margin for cleared derivatives transactions in excess of
clearing house margin requirements typically is held by the clearing member. Also, the Fund is subject to risk if it enters into a derivatives transaction that is required to be cleared (or that PIMCO expects to be cleared), and no clearing member
is willing or able to clear the transaction on the Fund&#146;s behalf. While the documentation in place between the Fund and its clearing members generally provides that the clearing members will accept for clearing all transactions submitted for
clearing that are within credit limits (specified in advance) for the Fund, the Fund is still subject to the risk that no clearing member will be willing or able to clear a transaction. In those cases, the transaction might have to be terminated,
and the Fund could lose some or all of the benefit of the transaction, including loss of an increase in the value of the transaction and/or loss of hedging protection offered by the transaction. In addition, the documentation governing the
relationship between the Fund and the clearing members is developed by the clearing members and generally is less favorable to the Fund than typical bilateral derivatives documentation. For example, this documentation generally includes a one-way
indemnity by the Fund in favor of the clearing member, indemnifying the clearing member against losses it incurs in connection with acting as the Fund&#146;s clearing member, and the documentation typically does not give the Fund any rights to
exercise remedies if the clearing member defaults or becomes insolvent. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Some types of cleared derivatives are required to be executed on
an exchange or on a swap execution facility (a &#147;SEF&#148;). A SEF is a trading platform where multiple market participants can execute derivatives by accepting bids and offers made by multiple other participants in the platform. This execution
requirement may make it more difficult and costly for funds, such as the Fund, to enter into highly tailored or customized transactions. Trading swaps on a SEF may offer </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">66 </P>


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certain advantages over traditional bilateral over-the-counter trading, such as ease of execution, price transparency, increased liquidity and/or favorable pricing. Execution through a SEF is
not, however, without additional costs and risks, as parties are required to comply with SEF and CFTC rules and regulations, including disclosure and recordkeeping obligations, and SEF rights of inspection, among others. SEFs typically charge fees,
and if the Fund executes derivatives on a swap execution facility through a broker intermediary, the intermediary may impose fees as well. The Fund also may be required to indemnify a SEF, or a broker intermediary who executes swaps on a SEF on the
Fund&#146;s behalf, against any losses or costs that may be incurred as a result of the Fund&#146;s transactions on the SEF. In addition, the Fund may be subject to execution risk if it enters into a derivatives transaction that is required to be
cleared, and no clearing member is willing to clear the transaction on the Fund&#146;s behalf. In that case, the transaction might have to be terminated, and the Fund could lose some or all of the benefit of any increase in the value of the
transaction after the time of the trade. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">These and other new rules and regulations could, among other things, further restrict the
Fund&#146;s ability to engage in, or increase the cost to the Fund of, derivatives transactions, for example, by making some types of derivatives no longer available to the Fund, increasing margin or capital requirements, or otherwise limiting
liquidity or increasing transaction costs. These regulations are new and evolving, so their potential impact on the Fund and the financial system are not yet known. While the new regulations and the central clearing of some derivatives transactions
are designed to reduce systemic risk (i.e., the risk that the interdependence of large derivatives dealers could cause a number of those dealers to suffer liquidity, solvency or other challenges simultaneously), there is no assurance that the new
clearing mechanisms will achieve that result, and in the meantime, as noted above, central clearing will expose the Fund to new kinds of risks and costs. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><B><I>A Note on Commodity-Linked Derivatives.</I></B> The Fund may seek to gain exposure to the commodity markets by investing in
commodity-linked derivative instruments, swap transactions, or index-linked or commodity linked structured notes. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The value of a
commodity-linked derivative investment generally is based upon the price movements of a physical commodity (such as energy, mineral, or agricultural products), a commodity futures contract or commodity index, or other economic variable based upon
changes in the value of commodities or the commodities markets. Swap transactions are privately negotiated agreements between the Fund and a counterparty to exchange or swap investment cash flows or assets at specified intervals in the future. The
obligations may extend beyond one year. There is no central exchange or market for swap transactions and therefore they are less liquid investments than exchange-traded instruments. The Fund bears the risk that the counterparty could default under a
swap agreement. See &#147;Swap Agreements and Options on Swap Agreements&#148; above for further detail about swap transactions. Further, the Fund may invest in derivative debt instruments with principal and/or coupon payments linked to the value of
commodities, commodity futures contracts or the performance of commodity indices. These are &#147;commodity-linked&#148; or &#147;index-linked&#148; notes, and are sometimes referred to as &#147;structured notes&#148; because the terms of the debt
instrument may be structured by the issuer of the note and the purchaser of the note. See &#147;Structured Notes&#148; above for further discussion of these notes. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The value of these notes will rise or fall in response to changes in the underlying commodity or related index of investment. These notes
expose the Fund economically to movements in commodity prices. These notes also are subject to risks, such as credit, market and interest rate </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">67 </P>


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risks, that in general affect the values of debt securities. Therefore, at the maturity of the note, the Fund may receive more or less principal that it originally invested. The Fund might
receive interest payments on the note that are more or less than the stated coupon interest payments. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman">The Fund&#146;s investments in commodity-linked
instruments may bear on or be limited by the Fund&#146;s intention to qualify as a regulated investment company under the Code. See &#147;Taxation.&#148; </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><B><I>Asset Segregation.</I></B> Certain of the transactions described above can be viewed as constituting a form of borrowing or financing
transaction by the Fund. In such event, the Fund will cover its commitment under such transactions by segregating or &#147;earmarking&#148; assets in accordance with procedures adopted by the Board of Trustees, in which case such transactions will
not be considered &#147;senior securities&#148; by the Fund. With respect to forwards and futures contracts and interest rate swaps that are contractually required to cash settle (i.e., where physical delivery of the underlying reference asset is
not permitted or physical settlement is not otherwise involved), the Fund is permitted to segregate or earmark liquid assets equal to the Fund&#146;s daily marked-to-market net obligation under the derivative instrument, if any, rather than the
derivative&#146;s full notional value, but will segregate full notional value, as applicable, with respect to other derivative instruments (including written credit default swaps, written total return swaps and written options) that contractually
require or permit physical delivery of securities or other underlying assets. By segregating or earmarking liquid assets equal to only its net marked-to-market obligation under forwards and futures contracts and interest rate swaps that are required
to cash settle, the Fund will have the ability to employ leverage to a greater extent than if the Fund were to segregate or earmark liquid assets equal to the full notional value of such derivatives. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Hybrid Instruments </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund may invest
in &#147;hybrid&#148; or indexed securities, which is a type of potentially high-risk derivative that combines a traditional stock, bond, or commodity with an option or forward contract. Generally, the principal amount, amount payable upon maturity
or redemption, or interest rate of a hybrid is tied (positively or negatively) to the price of some commodity, currency or securities index or another interest rate or some other economic factor (each a &#147;benchmark&#148;). The interest rate or
(unlike most fixed income securities) the principal amount payable at maturity of a hybrid security may be increased or decreased, depending on changes in the value of the benchmark. An example of a hybrid could be a bond issued by an oil company
that pays a small base level of interest with additional interest that accrues in correlation to the extent to which oil prices exceed a certain predetermined level. Such a hybrid instrument would be a combination of a bond and a call option on oil.
</P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Hybrids can be used as an efficient means of pursuing a variety of investment goals, including currency hedging, duration management and
increased total return. Hybrids may not bear interest or pay dividends. The value of a hybrid or its interest rate may be a multiple of a benchmark and, as a result, may be leveraged and move (up or down) more steeply and rapidly than the benchmark.
These benchmarks may be sensitive to economic and political events, such as commodity shortages and currency devaluations, which cannot be readily foreseen by the purchaser of a hybrid. Under certain conditions, the redemption value of a hybrid
could be zero. Thus, an investment in a hybrid may entail significant market risks that are not associated with a similar investment in a traditional, U.S. dollar-denominated bond that has a fixed principal amount and pays a fixed rate or floating
rate of interest. The purchase of hybrids also exposes the Fund to the credit risk of the issuer of the hybrids. These risks may cause significant fluctuations in the net asset value of the Fund. </P>
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  <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Certain hybrid instruments may provide exposure to the commodities markets. These are
derivative securities with one or more commodity-linked components that have payment features similar to commodity futures contracts, commodity options, or similar instruments. Commodity-linked hybrid instruments may be either equity or fixed income
securities and are considered hybrid instruments because they have both security and commodity-like characteristics. A portion of the value of these instruments may be derived from the value of a commodity, futures contract, index or other economic
variable. The Fund will only invest in commodity-linked hybrid instruments that qualify under applicable rules of the CFTC for an exemption from the provisions of the CEA. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Certain issuers of structured products such as hybrid instruments may be deemed to be investment companies, as defined in the 1940 Act. As a
result, the Fund&#146;s investments in these products may be subject to limits applicable to investments in investment companies and may be subject to other restrictions imposed by the 1940 Act. In addition, the Fund&#146;s investments in these
products may be limited by the Fund&#146;s intention to qualify as a regulated investment company, and may limit the Fund&#146;s ability to so qualify. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Leverage and Borrowing </B></P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund may
obtain leverage through reverse repurchase agreements, dollar rolls or 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, credit default swaps, futures and forward contracts (including foreign currency exchange contracts), total return swaps and other derivative transactions, loans of portfolio securities, short sales
and when-issued, delayed delivery and forward commitment transactions. Although it has no current intention to do so, the Fund may also determine to issue preferred shares or other types of senior securities to add leverage to its portfolio. </P>
 <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Under normal market conditions, the Fund will limit its use of leverage from any combination of (i)&nbsp;reverse repurchase agreements or
dollar roll transactions (whether or not these instruments are covered as discussed below), (ii), borrowings (i.e., loans or lines of credit from banks or other credit facilities), (iii)&nbsp;any future issuance of preferred shares, and (iv)&nbsp;to
the extent described below, credit default swaps, other swap agreements and futures contracts (whether or not these instruments are covered with segregated assets as discussed below) such that the assets attributable to the use of such leverage will
not exceed 50% of the Fund&#146;s total assets (including, for purposes of the 50% limit, the amounts of leverage obtained through the use of such instruments) (the &#147;50% policy&#148;). For these purposes, assets attributable to the use of
leverage from credit default swaps, other swap agreements and futures contracts will be determined based on the current market value of the instrument if it is cash settled or based on the notional value of the instrument if it is not cash settled.
In addition, assets attributable to credit default swaps, other swap agreements or futures contracts will not be counted towards the 50% policy to the extent that the Fund owns offsetting positions or enters into offsetting transactions. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Depending upon market conditions and other factors, the Fund may or may not determine to add leverage following an offering to maintain or
increase the total amount of leverage (as a percentage of the Fund&#146;s total assets) that the Fund currently maintains, taking into account the </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">69 </P>


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  <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">
additional assets raised through the issuance of Common Shares in such offering. The Fund utilizes certain kinds of leverage, such as reverse repurchase agreements and credit default swaps,
opportunistically and may choose to increase or decrease, or eliminate entirely, its use of such leverage over time and from time to time based on PIMCO&#146;s assessment of the yield curve environment, interest rate trends, market conditions and
other factors. If the Fund determines to add leverage following an offering, it is not possible to predict with accuracy the precise amount of leverage that would be added, in part because it is not possible to predict the number of Common Shares
that ultimately will be sold in an offering or series of offerings. To the extent that the Fund does not add additional leverage following an offering, the Fund&#146;s total amount of leverage as a percentage of its total assets will decrease, which
could result in a reduction of investment income available for distribution to Common Shareholders. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The net proceeds the Fund obtains
from reverse repurchase agreements, or other forms of leverage utilized will be invested in accordance with the Fund&#146;s investment objectives and policies as described in this prospectus and any prospectus supplement. So long as the rate of
return, net of applicable Fund expenses, on the debt obligations and other investments purchased by the Fund exceeds the costs to the Fund of the leverage it utilizes, the investment of the Fund&#146;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. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The 1940 Act generally prohibits the Fund from engaging in most forms of leverage representing indebtedness other than preferred shares
(including the use of reverse repurchase agreements, dollar rolls, bank loans, commercial paper or other credit facilities, 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, to the extent that these instruments are not covered as described below) 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&#146;s total assets less all liabilities and indebtedness not represented by senior securities (for these purposes, &#147;total net
assets&#148;) 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&#146;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 its Common Shares unless, at the time of such declaration, this asset coverage test is satisfied. The Fund may (but is not
required to) cover its commitments under reverse repurchase agreements, dollar rolls, derivatives and certain other instruments by the segregation of liquid assets, or by entering into offsetting transactions or owning positions covering its
obligations. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">To the extent that the Fund maintains segregated assets or otherwise covers certain of these instruments, they will not be
considered &#147;senior securities&#148; under the 1940 Act and therefore will not be subject to the 1940 Act 300% asset coverage requirement otherwise applicable to forms of senior securities representing indebtedness used by the Fund. However,
reverse repurchase agreements, dollar rolls and other such instruments, even if covered, represent a form of economic leverage and create special risks. The use of these forms of leverage increases the volatility of the Fund&#146;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. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">70 </P>


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  <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">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 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 assurance that the Fund&#146;s leveraging strategies will be successful or result in a higher yield on your Common Shares. When leverage is used, the NAV and market price of the Common Shares and the yield to Common Shareholders will be more
volatile. See &#147;Principal Risks of the Fund&#151;Leverage Risk&#148; in the Prospectus. In addition, dividend, interest and other costs and expenses borne by the Fund with respect to its use of reverse repurchase agreements, credit default
swaps, dollar rolls, borrowings or any other forms of leverage are borne by the Common Shareholders and result in a reduction of the NAV of the Common Shares. In addition, because the fees received by the Investment Manager are based on the
Fund&#146;s &#147;total managed assets&#148; (including any assets attributable to any reverse repurchase agreements, dollar rolls, borrowings and preferred shares that may be outstanding) minus accrued liabilities (other than liabilities
representing reverse repurchase agreements, dollar rolls and borrowings), the Investment Manager has a financial incentive for the Fund to use certain forms of leverage (e.g., reverse repurchase agreements, dollar rolls, borrowings and preferred
shares), which may create a conflict of interest between the Investment Manager, on the one hand, and the Common Shareholders, on the other hand. For purposes of calculating total managed assets, the Fund&#146;s derivative investments will be valued
based on their market value. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The SEC has issued a proposed rule relating to a registered investment company&#146;s use of derivatives and
related instruments that, if adopted, could potentially require the Fund to reduce its use of leverage and/or observe more stringent asset coverage and related requirements than are currently imposed by the 1940 Act, which could adversely affect the
value or performance of the Fund and the Common Shares. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">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. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Reverse Repurchase Agreements </B></P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The
Fund may enter into reverse repurchase agreements and economically similar transactions for hedging or cash management purposes or to add leverage to its portfolio. See the sections &#147;Use of Leverage&#148; in the Prospectus and &#147;Leverage
and Borrowing&#148; above. A reverse repurchase agreement involves the sale of a portfolio-eligible security by the Fund, coupled with its agreement to repurchase the instrument at a specified time and price. Under a reverse repurchase agreement,
the Fund continues to be entitled to receive any principal and interest payments on the underlying security during the term of the agreement. Reverse repurchase agreements involve leverage risk and the risk that the market value of securities
retained by the Fund may decline below the repurchase price of the securities sold by the Fund which it is obligated to repurchase. The Fund may (but is not required to) segregate or &#147;earmark&#148; liquid assets equal (on a daily mark-to-market
basis) to its obligations under reverse repurchase agreements. To the extent that positions in reverse repurchase agreements are not so covered, they would be deemed senior securities representing indebtedness for purposes of the 1940 Act. </P>

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  <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund also may effect simultaneous purchase and sale transactions that are known as
&#147;sale-buybacks.&#148; A sale-buyback is similar to a reverse repurchase agreement, except that in a sale-buyback, the counterparty who purchases the security is entitled to receive any principal or interest payments made on the underlying
security pending settlement of the Fund&#146;s repurchase of the underlying security. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Mortgage Dollar Rolls </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">A mortgage dollar roll is similar to a reverse repurchase agreement in certain respects. In a &#147;dollar roll&#148; transaction, the Fund
sells a mortgage-related security, such as a security issued by GNMA, to a dealer and simultaneously agrees to repurchase a similar security (but not the same security) in the future at a pre-determined price. A &#147;dollar roll&#148; can be
viewed, like a reverse repurchase agreement, as a collateralized borrowing in which the Fund pledges a mortgage-related security to a dealer to obtain cash. However, unlike reverse repurchase agreements, the dealer with which the Fund enters into a
dollar roll transaction is not obligated to return the same securities as those originally sold by the Fund, but only securities which are &#147;substantially identical.&#148; To be considered &#147;substantially identical,&#148; the securities
returned to the Fund generally must: (1)&nbsp;be collateralized by the same types of underlying mortgages; (2)&nbsp;be issued by the same agency and be part of the same program; (3)&nbsp;have a similar original stated maturity; (4)&nbsp;have
identical net coupon rates; (5)&nbsp;have similar market yields (and therefore price); and (6)&nbsp;satisfy &#147;good delivery&#148; requirements, meaning that the aggregate principal amounts of the securities delivered and received back must be
within a specified percentage of the initial amount delivered. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund&#146;s obligations under a dollar roll agreement must be covered
by segregated or &#147;earmarked&#148; liquid assets equal in value to the securities subject to repurchase by the Fund. As with reverse repurchase agreements, to the extent that positions in dollar roll agreements are not covered by segregated or
&#147;earmarked&#148; liquid assets at least equal to the amount of any forward purchase commitment, such transactions would be deemed senior securities representing indebtedness for purposes of the 1940 Act. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">It is possible that changing government regulation may affect the Fund&#146;s use of these strategies. Changes in regulatory requirements
concerning margin for certain types of financing transactions, such as repurchase agreements, reverse repurchase agreements, and securities lending and borrowing, could impact the Fund&#146;s ability to utilize these investment strategies and
techniques. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Repurchase Agreements </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">For the purposes of maintaining liquidity and achieving income, the Fund may enter into repurchase agreements with domestic commercial banks
or registered broker-dealers. A repurchase agreement is a contract under which the Fund would acquire a security for a relatively short period (usually not more than one week) subject to the obligation of the seller to repurchase and the Fund to
resell such security at a fixed time and price (representing the Fund&#146;s cost plus interest). In the case of repurchase agreements with broker-dealers, the value of the underlying securities (or collateral) will be at least equal at all times to
the total amount of the repurchase obligation, including the interest factor. The Fund bears a risk of loss in the event that the other party to a repurchase agreement defaults on its obligations and the Fund is delayed or prevented from exercising
its rights to dispose of the collateral securities. This risk includes the risk of procedural costs or delays in addition to a loss on the securities if their value should fall below their repurchase price. PIMCO will monitor the creditworthiness of
the counterparties. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Credit-Linked Trust Certificates </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund may invest in credit-linked trust certificates, which are investments in a limited purpose trust or other vehicle which, in turn,
invests in a basket of derivative instruments, such as credit default swaps, total return swaps, basis swaps, interest rate swaps and other derivative transactions or securities, in order to provide exposure to the high yield or another debt
securities market. For instance, the Fund may invest in credit-linked trust certificates as a cash management tool in order to gain exposure to the high yield markets and/or to remain fully invested when more traditional income-producing securities
are not available, including during the period when the net proceeds of this offering and any future offering are being invested. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Like an investment in a bond, investments in these credit-linked trust certificates represent the right to receive periodic income payments
(in the form of distributions) and payment of principal at the end of the term of the certificate. However, these payments are conditioned on the Fund&#146;s receipt of payments from, and the Fund&#146;s potential obligations to, the counterparties
to the derivative instruments and other securities in which the trust invests. For instance, the trust may sell one or more credit default swaps, under which the trust would receive a stream of payments over the term of the swap agreements provided
that no event of default has occurred with respect to the referenced debt obligation upon which the swap is based. If a default occurs, the stream of payments may stop and the trust would be obligated to pay to the counterparty the par (or other
agreed upon value) of the referenced debt obligation. This, in turn, would reduce the amount of income and principal that the Fund would receive as an investor in the trust. Please see &#147;Derivatives Instruments&#150;Swap Agreements and Options
on Swap Agreements&#148; in this Statement of Additional Information for additional information about credit default swaps. The Fund&#146;s investments in these instruments are indirectly subject to the risks associated with derivative instruments,
including, among others, credit risk, default or similar event risk, counterparty risk, interest rate risk, leverage risk and management risk. It is expected that the trusts which issue credit-linked trust certificates will constitute
&#147;private&#148; investment companies, exempt from registration under the 1940 Act. Therefore, the certificates will be subject to the risks described under &#147;Other Investment Companies,&#148; and will not be subject to applicable investment
limitations and other regulation imposed by the 1940 Act (although the Fund will remain subject to such limitations and regulation, including with respect to its investments in the certificates). Although the trusts are typically private investment
companies, they generally are not actively managed such as a &#147;hedge fund&#148; might be. It is also expected that the certificates will be exempt from registration under the 1933 Act. Accordingly, there may be no established trading market for
the certificates and they may constitute illiquid investments. See &#147;Principal Risks of the Fund&#150;Liquidity Risk&#148; in the Prospectus. If market quotations are not readily available for the certificates, they will be valued by the Fund at
fair value as determined by the Board of Trustees or persons acting at its direction. See &#147;Net Asset Value&#148; in the Prospectus. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>When-Issued, Delayed Delivery and Forward Commitment Transactions </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund may purchase or sell securities on a when-issued, delayed delivery or forward commitment basis. When such purchases are outstanding,
the Fund will segregate until the settlement date assets determined to be liquid by PIMCO in accordance with the procedures approved by the Board of Trustees in an amount sufficient to meet the purchase price. Typically, no income accrues on
securities the Fund has committed to purchase prior to the time delivery of the securities is made, although the Fund may earn income on securities it has segregated. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman">When purchasing a security on a when-issued, delayed delivery or forward commitment basis, the Fund assumes the
rights and risks of ownership of the security, including the risk of price and yield fluctuations, and takes such fluctuations into account when determining its net asset value. Because the Fund is not required to pay for the security until the
delivery date, these risks are in addition to the risks associated with the Fund&#146;s other investments. If the Fund remains substantially fully invested at a time when when-issued, delayed delivery or forward commitment purchases are outstanding,
the purchases may result in a form of leverage. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">When the Fund has sold a security on a when-issued, delayed delivery or forward
commitment basis, the Fund does not participate in future gains or losses with respect to the security. If the other party to a transaction fails to deliver or pay for the securities, the Fund could miss a favorable price or yield opportunity or
could suffer a loss. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund may dispose of or renegotiate a transaction after it is entered into, and may sell when-issued, delayed
delivery or forward commitment securities before they are delivered, which may result in a capital gain or loss. There is no percentage limitation on the extent to which the Fund may purchase or sell securities on a when-issued, delayed delivery or
forward commitment basis. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Common Stocks </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Common stock generally takes the form of shares in a corporation. The value of a company&#146;s stock may fall as a result of factors directly
relating to that company, such as decisions made by its management or lower demand for the company&#146;s products or services. A stock&#146;s value also may fall because of factors affecting not just the company, but also companies in the same
industry or in a number of different industries, such as increases in production costs. The value of a company&#146;s stock also may be affected by changes in financial markets that are relatively unrelated to the company or its industry, such as
changes in interest rates or currency exchange rates. In addition, a company&#146;s stock generally pays dividends only after the company invests in its own business and makes required payments to holders of its bonds, other debt and preferred
stock. For this reason, the value of a company&#146;s stock will usually react more strongly than its bonds, other debt and preferred stock to actual or perceived changes in the company&#146;s financial condition or prospects. Stocks of smaller
companies may be more vulnerable to adverse developments than those of larger companies. Stocks of companies that the portfolio managers believe are fast-growing may trade at a higher multiple of current earnings than other stocks. The value of such
stocks may be more sensitive to changes in current or expected earnings than the values of other stocks. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Short Sales </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund may make short sales of securities (i)&nbsp;to offset potential declines in long positions in similar securities, (ii)&nbsp;to
increase the flexibility of the Fund, (iii)&nbsp;for investment return, (iv)&nbsp;as part of a risk arbitrage strategy, and (v)&nbsp;as part of its overall portfolio management strategies involving the use of derivative instruments. A short sale is
a transaction in which the Fund sells a security it does not own in anticipation that the market price of that security will decline or will underperform relative to other securities held in the Fund&#146;s portfolio. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">74 </P>


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  <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">When the Fund makes a short sale, it must borrow the security sold short and deliver it to
the broker-dealer through which it made the short sale as collateral for its obligation to deliver the security upon conclusion of the sale. The Fund may have to pay a fee to borrow particular securities or maintain an arrangement with a broker to
borrow securities and would often be obligated to pay over any accrued interest and dividends on such borrowed securities. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">If the
price of the security sold short increases between the time of the short sale and the time that the Fund replaces the borrowed security, the Fund will incur a loss; conversely, if the price declines, the Fund will realize a capital gain. Any gain
will be decreased, and any loss increased, by the transaction costs described above. The successful use of short selling may be adversely affected by imperfect correlation between movements in the price of the security sold short and the securities
being hedged. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund may invest pursuant to a risk arbitrage strategy to take advantage of a perceived relationship between the
value of two securities. Frequently, a risk arbitrage strategy involves the short sale of a security. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">To the extent the Fund engages in
short sales, it will provide collateral to the broker-dealer and (except in the case of short sales &#147;against the box&#148;) will maintain additional asset coverage in the form of segregated or &#147;earmarked&#148; assets determined to be
liquid by PIMCO in accordance with procedures approved by the Board of Trustees. A short sale is &#147;against the box&#148; to the extent that the Fund contemporaneously owns, or has the right to obtain at no added cost, securities identical to
those sold short. The Fund will engage in short selling to the extent permitted by the federal securities laws and rules and interpretations thereunder. To the extent the Fund engages in short selling in foreign (non-U.S.) jurisdictions, the Fund
will do so to the extent permitted by the laws and regulations of such jurisdiction. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund may also engage in so-called
&#147;naked&#148; short sales (i.e., short sales that are not &#147;against the box&#148;), in which case the Fund&#146;s losses could theoretically be unlimited, in cases where the Fund is unable for whatever reason to close out its short position.
The Fund has the flexibility to engage in short selling to the extent permitted by the 1940 Act and rules and interpretations thereunder. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Illiquid Securities </B></P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund may
invest without limit in illiquid securities. PIMCO may be subject to significant delays in disposing of illiquid securities, and other transaction costs that are higher than those for transactions in liquid securities may entail registration
expenses and other transaction costs that are higher than those for transactions in liquid securities. The term &#147;illiquid securities&#148; for this purpose means any investment 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. Depending on the circumstances, illiquid securities may be considered to include, among other things,
certain purchased over-the-counter options and the assets used to cover certain written over-the-counter options, securities or other liquid assets being used as cover for such options, repurchase agreements with maturities in excess of seven days,
certain loan participation interests, fixed time deposits which are not subject to prepayment or provide for withdrawal penalties upon prepayment (other than overnight deposits), securities that are subject to legal or contractual restrictions on
resale (such as privately placed debt securities), and other securities which legally or in PIMCO&#146;s opinion may be deemed </P>
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  <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">
illiquid (not including securities issued pursuant to Rule 144A under the 1933 Act), and certain commercial paper that PIMCO has determined to be liquid under procedures approved by the Board of
Trustees). </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Rule 144A Securities </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund may invest in securities that have not been registered for public sale, but that are eligible for purchase and sale pursuant to Rule
144A under the 1933 Act. Rule 144A permits certain qualified institutional buyers, such as the Fund, to trade in privately placed securities that have not been registered for sale under the 1933 Act. Rule 144A Securities may be deemed illiquid,
although the Fund may determine that certain Rule 144A Securities are liquid in accordance with procedures adopted by the Board of Trustees. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Other Investment Companies </B></P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">To the
extent consistent with its objectives and strategy and permissible under the 1940 Act, the Fund may invest in securities of open- or closed-end investment companies, including, without limit, exchange- traded funds (&#147;ETFs&#148;), and may invest
in foreign ETFs. The Fund treats its investments in other investment companies that invest primarily in types of securities in which the Fund may invest directly as investments in such types of securities for purposes of the Fund&#146;s investment
policies (e.g., the Fund&#146;s investment in an investment company that invests primarily in debt securities will be treated by the Fund as an investment in a debt security). </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">In general, under the 1940 Act, an investment company such as the Fund may not (i)&nbsp;own more than 3% of the outstanding voting securities
of any one registered investment company, (ii) invest more than 5% of its total assets in the securities of any single registered investment company or (iii)&nbsp;invest more than 10% of its total assets in securities of other registered investment
companies. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund may invest in other investment companies to gain broad market or sector exposure, including during periods when it
has large amounts of uninvested cash (such as the period shortly after the Fund receives the proceeds of the offering of its Common Shares) or when PIMCO believes share prices of other investment companies offer attractive values. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">As a shareholder in an investment company, the Fund will bear its ratable share of that investment company&#146;s expenses and would remain
subject to payment of the Fund&#146;s 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, the securities of other investment companies may also be leveraged and will therefore be subject to the same leverage risks described in the Prospectus and herein. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Private Placements </B></P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">A private
placement involves the sale of securities that have not been registered under the 1933 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. 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. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Fund Operations </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><I>Operational Risk.</I> 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. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><I>Cybersecurity Risk.</I> As the use of technology has become more prevalent in the course
of business, the Fund has become potentially more susceptible to operational and informational security risks resulting from breaches in cyber security. A breach in cyber security refers to both intentional and unintentional cyber events 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. Cyber security breaches may involve unauthorized access to the Fund&#146;s digital information systems (e.g., through &#147;hacking&#148; or malicious software coding), but may also result from outside attacks such as
denial-of-service attacks (i.e., efforts to make network services unavailable to intended users). In addition, cyber security breaches involving the Fund&#146;s third party service providers (including but not limited to advisers, administrators,
transfer agents, custodians, 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. Moreover, cyber
security breaches involving trading counterparties or issuers in which the Fund invests could adversely impact such counterparties or issuers and cause the Fund&#146;s investment to lose value. Cyber security failures or breaches may result in
financial losses to the Fund and its shareholders. These failures or breaches may also result in disruptions to business operations, potentially resulting in financial losses; interference with the Fund&#146;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; 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 an attempt to prevent any cyber incidents in the future. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Like with operational risk in general, the Fund has established risk management systems and business continuity plans designed to reduce the
risks associated with cyber security. However, there are inherent limitations in these plans and systems, including that certain risks may not have been identified, in large part because different or unknown threats may emerge in the future. As
such, there is no guarantee that such efforts will succeed, especially because the Fund does not directly control the cyber security systems of issuers in which the Fund may invest, trading counterparties or third party service providers to the
Fund. There is also a risk that cyber security breaches may not be detected. The Fund and its shareholders could be negatively impacted as a result. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Portfolio Turnover </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The selling of the
securities held by the Fund and reinvestment of the proceeds is known as &#147;portfolio turnover.&#148; PIMCO manages the Fund without regard generally to restrictions on </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">77 </P>


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  <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">
portfolio turnover. Trading in fixed income securities does not generally involve the payment of brokerage commissions, but does involve indirect transaction costs. Trading in equity securities
involves the payment of brokerage commissions, which are transaction costs paid by the Fund. The use of futures contracts may involve the payment of commissions to futures commission merchants. High portfolio turnover (e.g., greater than 100%)
involves correspondingly greater expenses to the Fund, including brokerage commissions or dealer mark-ups and other transaction costs on the sale of securities and reinvestments in other securities. The higher the rate of portfolio turnover of the
Fund, the higher these transaction costs borne by the Fund generally will be. Such sales may result in realization of taxable capital gains (including short-term capital gains which are taxed when distributed to shareholders who are individuals at
ordinary income tax rates). See &#147;Taxation.&#148; </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The portfolio turnover rate of the Fund is calculated by dividing (a)&nbsp;the
lesser of purchases or sales of portfolio securities for the particular fiscal year by (b)&nbsp;the monthly average of the value of the portfolio securities owned by the Fund during the particular fiscal year. In calculating the rate of portfolio
turnover, there is excluded from both (a)&nbsp;and (b)&nbsp;all derivatives and all securities, including options, whose maturities or expiration dates at the time of acquisition were one year or less. Proceeds from short sales and assets used to
cover short positions undertaken are also excluded from both (a)&nbsp;and (b). For the fiscal year ended June&nbsp;30, 2017 the Fund&#146;s portfolio turnover rate was 20%. For the fiscal period ended June&nbsp;30, 2016, the Fund&#146;s portfolio
turnover rate was 13%. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Warrants to Purchase Securities </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund may invest in or acquire warrants to purchase equity or fixed income securities. Warrants are securities that are usually issued
together with a debt security or preferred stock and that give the holder the right to buy a proportionate amount of common stock at a specific price. Warrants are freely transferable and are often traded on major exchanges. Warrants normally have a
life that is measured in years and entitle the holder to buy common stock of a company at a price that is usually higher than the market price at the time the warrant is issued. Warrants may entail greater risks than certain other types of
investments. Generally, warrants do not carry the right to receive dividends or exercise voting rights with respect to the underlying securities, and they do not represent any rights in the assets of the issuer. In addition, their value does not
necessarily change with the value of the underlying securities, and they cease to have value if they are not exercised on or before their expiration date. If the market price of the underlying stock does not exceed the exercise price during the life
of the warrant, the warrant will expire worthless. Warrants may increase the potential profit or loss to be realized from the investment as compared with investing the same amount in the underlying securities. Similarly, the percentage increase or
decrease in the value of an equity security warrant may be greater than the percentage increase or decrease in the value of the underlying common stock. Warrants may relate to the purchase of equity or debt securities. Debt obligations with warrants
attached to purchase equity securities have many characteristics of convertible securities and their prices may, to some degree, reflect the performance of the underlying stock. Debt obligations also may be issued with warrants attached to purchase
additional debt securities at the same coupon rate. A decline in interest rates would permit the Fund to sell the warrants at a profit. If interest rates rise, the warrants would generally expire with no value. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund may from time to time use non-standard warrants, including low exercise price warrants or low exercise price options
(&#147;LEPOs&#148;), to gain exposure to issuers in certain countries. LEPOs are different from standard warrants in that they do not give their holders the right to receive a </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">78 </P>


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  <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">
security of the issuer upon exercise. Rather, LEPOs pay the holder the difference in price of the underlying security between the date the LEPO was purchased and the date it is sold.
Additionally, LEPOs entail the same risks as other OTC derivatives, including the risks that the counterparty or issuer of the LEPO may not be able to fulfill its obligations, that the holder and counterparty or issuer may disagree as to the meaning
or application of contractual terms, or that the instrument may not perform as expected. Furthermore, while LEPOs may be listed on an exchange, there is no guarantee that a liquid market will exist or that the counterparty or issuer of a LEPO will
be willing to repurchase such instrument when the Fund wishes to sell it. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Loans of Portfolio Securities </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Subject to certain conditions described in the Prospectus and below, the Fund may make secured loans of its portfolio securities to brokers,
dealers and other financial institutions amounting to no more than one-third of its total assets. The risks in lending portfolio securities, as with other extensions of credit, include possible delay in recovery of the securities or possible loss of
rights in the collateral should the borrowers (which typically include broker-dealers and other financial services companies) fail financially. However, such loans will be made only to borrowers that are believed by PIMCO to be of satisfactory
credit standing. Securities loans are made to broker-dealers pursuant to agreements requiring that loans be continuously secured by collateral consisting of U.S. Government securities, cash or cash equivalents (negotiable certificates of deposit,
bankers&#146; acceptances or letters of credit) maintained on a daily mark-to-market basis in an amount at least equal at all times to the market value of the securities lent. The borrower pays to the Fund, as the lender, an amount equal to any
dividends or interest received on the securities lent. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund may invest only the cash collateral received in interest-bearing,
short-term securities or receive a fee from the borrower. In the case of cash collateral, the Fund typically pays a rebate to the lender. Although voting rights or rights to consent with respect to the loaned securities pass to the borrower, the
Fund, as the lender, retains the right to call the loans and obtain the return of the securities loaned at any time on reasonable notice, and it will do so in order that the securities may be voted by the Fund if the holders of such securities are
asked to vote upon or consent to matters materially affecting the investment. The Fund may also call such loans in order to sell the securities involved. The Fund&#146;s performance will continue to reflect changes in the value of the securities
loaned and will also reflect the receipt of either interest, through investment of cash collateral by the Fund in permissible investments, or a fee, if the collateral is U.S. Government securities. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Participation on Creditors Committees </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Generally, when the Fund holds bonds or other similar fixed income securities of an issuer, the Fund becomes a creditor of the issuer. As a
creditor of an issuer, the Fund may be subject to challenges related to the securities that it holds, either in connection with the bankruptcy of the issuer or in connection with another action brought by other creditors of the issuer, shareholders
of the issuer or the issuer itself (collectively, &#147;restructuring transactions&#148;). Although under no obligation to do so, PIMCO, as adviser to the Fund, may from time to time have an opportunity to consider, on behalf of the Fund and other
similarly situated clients, negotiating or otherwise participating in the restructuring of the Fund&#146;s portfolio investment or the issuer of such investment. PIMCO, in its judgment and discretion and based on the considerations deemed by PIMCO
to be relevant, may believe that it is in the best interests of the Fund to negotiate or </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">79 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">otherwise participate in a restructuring transaction. Accordingly, and subject to applicable
procedures approved by the Board of Trustees, the Fund may from time to time participate on committees formed by creditors to negotiate with the management of financially troubled issuers of securities held by the Fund. Such participation may
subject the Fund to expenses such as legal fees and may make the Fund an &#147;insider&#148; of the issuer for purposes of the federal securities laws, and therefore may restrict the Fund&#146;s ability to trade in or acquire additional positions in
a particular security when it might otherwise desire to do so. Participation by the Fund on such committees also may expose the Fund to potential liabilities under the federal bankruptcy laws or other laws governing the rights of creditors and
debtors. Further, PIMCO has the general authority, subject to the above-mentioned procedures, to represent the Fund on creditors&#146; committees (or similar committees) or otherwise in connection with a restructuring transaction. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Short-Term Investments / Temporary Defensive Strategies </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Upon PIMCO&#146;s recommendation, for temporary defensive purposes and in order to keep the Fund&#146;s cash fully invested, the Fund may
invest up to 100% of its net assets in investment grade debt securities, including high quality, short-term debt instruments, credit-linked trust certificates and/or index futures contracts or similar derivative instruments. Such investments may
prevent the Fund from achieving its investment objectives. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Subsidiaries </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund may execute its strategy by investing through its Subsidiaries. The Fund does not currently intend to sell or transfer all or any
portion of its ownership interest in a Subsidiary. The Fund reserves the right to establish additional Subsidiaries through which the Fund may execute its strategy. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Tax Consequences </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The requirements for
qualification as a regulated investment company under Subchapter M of the Code may limit the extent to which the Fund may invest in certain securities and transactions described above. In addition, the Fund&#146;s utilization of certain investment
instruments may alter the amount, timing and character of the Fund&#146;s income, and, in turn, of the Fund&#146;s distributions to its shareholders, relative to other means of achieving similar investment exposure. In certain circumstances, the
Fund may be required to sell assets in order to meet regulated investment company distribution requirements even when investment considerations make such sales otherwise undesirable. For more information concerning these requirements and the
taxation of the Fund&#146;s investments, see &#147;Taxation&#148; below. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B><A NAME="sai450385_3"></A>INVESTMENT RESTRICTIONS </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Fundamental Investment Restrictions </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Except as described below, the Fund, as a fundamental policy, may not, without the approval of the holders of a majority of the outstanding
Common Shares and any outstanding preferred shares of beneficial interest voting together as a single class, and of the holders of a majority of any outstanding preferred shares of beneficial interest voting as a separate class: </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:5%; text-indent:5%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(1) Purchase any security if as a result 25% or more of the Fund&#146;s total assets (taken at current value
at the time of investment) would be invested in a single industry (for purposes of this restriction, investment companies are not considered to be part of any industry). As a fundamental policy, the Fund, under normal circumstances, will invest at
least 25% of its total assets in mortgage-related securities not issued or guaranteed as to principal or interest by the U.S. Government or its agencies or instrumentalities and other investments that the Fund&#146;s investment adviser or
sub-adviser determines have the same primary economic characteristics. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">80 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:5%; text-indent:5%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(2) Purchase or sell real estate, although it may purchase
securities secured by real estate or interests therein, or securities issued by companies that invest in real estate, or interests therein. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:5%; text-indent:5%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(3) Purchase or sell commodities or commodities contracts or oil, gas or mineral programs. This restriction
shall not prohibit the Fund, subject to restrictions described in the Prospectus and elsewhere in this Statement of Additional Information, from purchasing, selling or entering into futures contracts, options on futures contracts, forward contracts,
or any interest rate, securities-related or other derivative instrument, including swap agreements and other derivative instruments, subject to compliance with any applicable provisions of the federal securities or commodities laws. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:5%; text-indent:5%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(4) Borrow money or issue any senior security, except to the extent permitted under the 1940 Act and as
interpreted, modified, or otherwise permitted from time to time by regulatory authority having jurisdiction. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:5%; text-indent:5%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(5) Make loans, except to the extent permitted under the Investment Company Act of 1940, as amended, and as
interpreted, modified, or otherwise permitted by regulatory authority having jurisdiction. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:5%; text-indent:5%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(6) Act as an
underwriter of securities of other issuers, except to the extent that in connection with the disposition of portfolio securities, it may be deemed to be an underwriter under the federal securities laws. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Other Information Regarding Investment Restrictions </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Subject to the Fund&#146;s self-imposed limitations, if any, as they may be amended from time to time, the Fund interprets its policies with
respect to leverage and borrowing, issuing senior securities and lending to permit such activities as may be lawful for the Fund, to the full extent permitted by the 1940 Act or by exemption from the provisions therefrom pursuant to exemptive order
of the SEC. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Currently, under the 1940 Act, the Fund may generally not lend money or property to any person, directly or indirectly, if
such person controls or is under common control with the Fund, except for a loan from the Fund to a company that owns all of the outstanding securities of the Fund, except directors&#146; and qualifying shares. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">For purposes of the foregoing, &#147;majority of the outstanding,&#148; when used with respect to particular shares of the Fund (whether
voting together as a single class or voting as separate classes), means (i)&nbsp;67% or more of such shares present at a meeting, if the holders of more than 50% of such shares are present or represented by proxy, or (ii)&nbsp;more than 50% of such
shares, whichever is less. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Unless otherwise indicated, all limitations applicable to the Fund&#146;s investments (as stated above and
elsewhere in this Statement of Additional Information) apply only at the time a transaction is entered into. Any subsequent change in a rating assigned by any rating service to a security (or, if unrated, deemed by PIMCO to be of comparable
quality), or change in the percentage of the Fund&#146;s total assets invested in certain securities or other instruments, or change in the average maturity or duration of the Fund&#146;s investment portfolio, resulting from market fluctuations or
other changes in the Fund&#146;s total assets will not require the Fund to dispose of an investment until </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">81 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">
PIMCO determines that it is practicable to sell or close out the investment without undue market or tax consequences to the Fund. In the event that rating agencies assign different ratings to the
same security, PIMCO will determine which rating it believes best reflects the security&#146;s quality and risk at that time, which may be the higher of the several assigned ratings. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Under the Fund&#146;s policy in paragraph (2)&nbsp;above in &#147;Fundamental Investment Restrictions,&#148; where the Fund purchases a loan
or other security secured by real estate or interests therein, in the event of a subsequent default, foreclosure, or similar event, the Fund may take possession of and hold the underlying real estate in accordance with its rights under the initial
security and subsequently sell or otherwise dispose of such real estate. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Under the 1940 Act, a &#147;senior security&#148; does not
include any promissory note or evidence of indebtedness where such loan is for temporary purposes only and in an amount not exceeding 5% of the value of the total assets of the issuer at the time the loan is made. A loan is presumed to be for
temporary purposes if it is repaid within sixty days and is not extended or renewed. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">For purposes of applying the terms of the
Fund&#146;s policy in the first sentence of paragraph (1)&nbsp;above (the &#147;industry concentration policy&#148;), PIMCO will, on behalf of the Fund, make reasonable determinations as to the appropriate industry classification to assign to each
security or instrument in which the Fund invests. The definition of what constitutes a particular &#147;industry&#148; is an evolving one, particularly for industries or sectors within industries that are new or are undergoing rapid development.
Some securities could reasonably fall within more than one industry category. The Fund&#146;s industry concentration policy does not preclude it from focusing investments in issuers in a group of related industrial sectors (such as different types
of utilities). For purposes of the industry concentration policy, a foreign government is considered to be an industry, although currency positions are not considered to be an investment in a foreign government for these purposes. Mortgage-related
or asset-backed securities that are issued or guaranteed as to principal or interest by the U.S. Government or its agencies or instrumentalities are not subject to the Fund&#146;s industry concentration policy, by virtue of the exclusion from that
test available to all U.S. Government securities. Similarly, tax-exempt municipal bonds issued by states, municipalities and other political subdivisions, agencies, authorities and instrumentalities of states and multi-state agencies and authorities
are not subject to the Fund&#146;s industry concentration policy. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">To the extent that an underlying investment company in which the Fund
invests has adopted an 80% policy to invest in a particular industry, the Fund will take such policy into consideration for purposes of the Fund&#146;s industry concentration policy. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">For purposes of applying the terms of the policy in the second sentence of paragraph (1)&nbsp;above, privately issued mortgage-related
securities include, but are not limited to, any mortgage-related security (other than those issued or guaranteed as to principal or interest by the U.S Government or its agencies or instrumentalities), securities 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 REMICs, which could include
Re-REMICs, mortgage pass-through securities, inverse floaters, collateralized mortgage obligations, collateralized loan obligations, multiclass pass-through securities, private mortgage pass-through securities, and stripped mortgage securities
(generally interest-only and principal-only securities). Exposures to mortgage-related securities through derivatives or other financial instruments may be considered investments in mortgage-related securities. Privately issued mortgage-related
securities also may include, without </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">82 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">
limitation, interests in pools of residential mortgages or commercial mortgages, and may relate to domestic or non-US mortgages. Because the market for mortgage-related securities continues to
develop, it is possible that instruments that have not yet been created will be issued in the future by non- governmental entities and will be determined by PIMCO to have similar economic characteristics as the instruments named in this paragraph.
Such new instruments would be applied towards satisfying the Fund&#146;s policy in the second sentence of paragraph (1)&nbsp;above. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">To
the extent the Fund covers its commitment under a reverse repurchase agreement, credit default swap or other derivative instrument by the segregation of assets determined by PIMCO to be liquid in accordance with procedures adopted by the Trustees,
equal in value to the amount of the Fund&#146;s commitment, such instrument will not be considered a &#147;senior security&#148; for purposes of the 1940 Act asset coverage requirements otherwise applicable to borrowings by the Fund. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">For purposes of its investment policies and restrictions, the Fund may value derivative instruments at market value, notional value or full
exposure value (i.e., the sum of the notional amount for the contract plus the market value). For example, the Fund may value credit default swaps at full exposure value for purposes of the Fund&#146;s credit quality guidelines because such value in
general better reflects the Fund&#146;s actual economic exposure during the term of the credit default swap agreement. In this context, both the notional amount and the market value may be positive or negative depending on whether the Fund is
selling or buying protection through the credit default swap. The manner in which certain securities or other instruments are valued by the Fund for purposes of applying investment policies and restrictions may differ from the manner in which those
investments are valued by other types of investors. As a result, by netting certain exposures, a Fund may, at times, have gross notional exposure to an asset class (before netting) that is greater or lesser than the stated limit or restriction noted
in the Fund&#146;s prospectus which may result in losses to a Fund. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">From time to time, the Fund may voluntarily participate in
actions (for example, rights offerings, conversion privileges, exchange offers, credit event settlements, etc.) where the issuer or counterparty offers securities or instruments to holders or counterparties, such as the Fund, and the acquisition is
determined to be beneficial to Fund shareholders (&#147;Voluntary Action&#148;). Notwithstanding any percentage investment limitation listed under this &#147;Investment Restrictions&#148; section or any percentage investment limitation of the 1940
Act or rules thereunder, if the Fund has the opportunity to acquire a permitted security or instrument through a Voluntary Action, and the Fund will exceed a percentage investment limitation following the acquisition, it will not constitute a
violation if, prior to the receipt of the securities or instruments and after announcement of the offering, the Fund sells an offsetting amount of assets that are subject to the investment limitation in question at least equal to the value of the
securities or instruments to be acquired. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Unless otherwise indicated, all percentage limitations on Fund investments (as stated
throughout this Statement of Additional Information or in the Prospectus) that are not: (i)&nbsp;specifically included in this &#147;Investment Restrictions&#148; section; or (ii)&nbsp;imposed by the 1940 Act, rules thereunder, the Code or related
regulations (the &#147;Elective Investment Restrictions&#148;), will apply only at the time of investment unless the acquisition is a Voluntary Action. The percentage limitations and absolute prohibitions with respect to Elective Investment
Restrictions are not applicable to the Fund&#146;s acquisition of securities or instruments through a Voluntary Action. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">83 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund may engage in roll-timing strategies where the Fund seeks to extend the expiration or
maturity of a position, such as a forward contract, futures contract or to-be-announced (&#147;TBA&#148;) transaction, on an underlying asset by closing out the position before expiration and contemporaneously opening a new position with respect to
the same underlying asset that has substantially similar terms except for a later expiration date. Such &#147;rolls&#148; enable the Fund to maintain continuous investment exposure to an underlying asset beyond the expiration of the initial position
without delivery of the underlying asset. Similarly, as certain standardized swap agreements transition from over-the-counter trading to mandatory exchange-trading and clearing due to the implementation of Dodd-Frank Act regulatory requirements, the
Fund may &#147;roll&#148; an existing over-the-counter swap agreement by closing out the position before expiration and contemporaneously entering into a new exchange-traded and cleared swap agreement on the same underlying asset with substantially
similar terms except for a later expiration date. These types of new positions opened contemporaneous with the closing of an existing position on the same underlying asset with substantially similar terms are collectively referred to as &#147;Roll
Transactions.&#148; Elective Investment Restrictions (defined in the preceding paragraph), which normally apply at the time of investment, do not apply to Roll Transactions (although Elective Investment Restrictions will apply to the Fund&#146;s
entry into the initial position). In addition and notwithstanding the foregoing, for purposes of this policy, those Non-Fundamental Investment Restrictions that are considered Elective Investment Restrictions for purposes of the policy on Voluntary
Actions (described in the preceding paragraph) are also Elective Investment Restrictions for purposes of this policy on Roll Transactions. The Fund will test for compliance with Elective Investment Restrictions at the time of the Fund&#146;s initial
entry into a position, but the percentage limitations and absolute prohibitions set forth in the Elective Investment Restrictions are not applicable to the Fund&#146;s subsequent acquisition of securities or instruments through a Roll Transaction.
</P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B><A NAME="sai450385_4"></A>MANAGEMENT OF THE FUND </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Trustees and Officers </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:5%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The business of the Fund is managed under the direction of the Fund&#146;s Board of Trustees (the &#147;Board&#148;). Subject
to the provisions of the Fund&#146;s Amended and Restated Agreement and Declaration of Trust, as may be amended from time to time (the &#147;Declaration&#148;) its Bylaws, as may be amended from time to time (the &#147;Bylaws&#148;) and
Massachusetts law, the Trustees have all powers necessary and convenient to carry out their responsibilities, including the election and removal of the Fund&#146;s officers. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:5%; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><B>Board Leadership Structure</B> &#151; The Board consists of eight Trustees, six of whom are not &#147;interested
persons&#148; (within the meaning of Section&nbsp;2(a)(19) of the 1940 Act) of the Fund or of the Investment Manager (the &#147;Independent Trustees&#148;), which represents 75% of the Trustees that are Independent Trustees. An Independent Trustee
serves as Chairman of the Board and is selected by a vote of the majority of the Independent Trustees. The Chairman of the Trustees presides at meetings of the Board and acts as a liaison with service providers, officers, attorneys and other
Trustees generally between meetings, and performs such other functions as may be requested by the Board from time to time. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:5%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Board meets regularly four times each year to discuss and consider matters concerning the Fund, and also holds special
meetings to address matters arising between regular meetings. The Independent Trustees regularly meet outside the presence of management and are advised by independent legal counsel. Regular meetings generally take place in-person; other meetings
may take place in-person or by telephone. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">84 </P>


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  <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:5%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Board has established six standing Committees to facilitate the
Trustees&#146; oversight of the management of the Fund: the Audit Oversight Committee, the Nominating Committee, the Valuation Oversight Committee, the Compensation Committee, the Contracts Committee and the Performance Committee. The functions and
role of each Committee are described below under &#147;Committees of the Board of Trustees.&#148; The membership of each Committee consists of all of the Independent Trustees, which the Board believes allows them to participate in the full range of
the Board&#146;s oversight duties. In addition, the Performance Committee consists of all of the Trustees. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:5%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Board
reviews its leadership structure periodically and has determined that this leadership structure, including an Independent Chairman, a supermajority of Independent Trustees and Committee membership limited to Independent Trustees (with the exception
of the Performance Committee), is appropriate in light of the characteristics and circumstances of the Fund. In reaching this conclusion, the Board considered, among other things, the predominant role of the Investment Manager in the day-to-day
management of Fund affairs, the extent to which the work of the Board is conducted through the Committees, the number of funds overseen by the Board that are advised by the Investment Manager or have an investment adviser that is an affiliated
person of the Investment Manager (the &#147;Fund Complex&#148;), the variety of asset classes those funds include, the assets of the Fund and the other funds overseen by the Board in the Fund Complex and the management and other service arrangements
of the Fund and such other funds. The Board also believes that its structure, including the presence of two Trustees who are executives with the Investment Manager or Investment Manager-affiliated entities, facilitates an efficient flow of
information concerning the management of the Fund to the Independent Trustees. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:5%; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><B>Risk Oversight </B>&#151; The Fund
has retained the Investment Manager to provide investment advisory services and administrative services. Accordingly, the Investment Manager is immediately responsible for the management of risks that may arise from Fund investments and operations.
Some employees of the Investment Manager serve as the Fund&#146;s officers, including the Fund&#146;s principal executive officer and principal financial and accounting officer, chief compliance officer and chief legal officer. The Investment
Manager and the Fund&#146;s other service providers have adopted policies, processes, and procedures to identify, assess and manage different types of risks associated with the Fund&#146;s activities. The Board oversees the performance of these
functions by the Investment Manager and the Fund&#146;s other service providers, both directly and through the Committee structure it has established. The Board receives from the Investment Manager a wide range of reports, both on a regular and
as-needed basis, relating to the Fund&#146;s activities and to the actual and potential risks of the Fund. These include reports on investment and market risks, custody and valuation of Fund assets, compliance with applicable laws, and the
Fund&#146;s financial accounting and reporting. In addition, the Board meets periodically with the portfolio managers of the Fund or their delegates to receive reports regarding the portfolio management of the Fund and its performance, including its
investment risks. In the course of these meetings and discussions with the Investment Manager, the Board has emphasized to the Investment Manager the importance of maintaining vigorous risk management programs and procedures. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:5%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">In addition, the Board has appointed a Chief Compliance Officer (&#147;CCO&#148;). The CCO oversees the development of
compliance policies and procedures that are reasonably designed to minimize the risk of violations of the federal securities laws (&#147;Compliance Policies&#148;). The CCO reports directly to the Independent Trustees, interacts with individuals
within the Investment </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">85 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">
Manager&#146;s organization and provides presentations to the Board at its quarterly meetings and an annual report on the application of the Compliance Policies. The Board periodically discusses
relevant risks affecting the Fund with the CCO at these meetings. The Board has approved the Compliance Policies and reviews the CCO&#146;s reports. Further, the Board annually reviews the sufficiency of the Compliance Policies, as well as the
appointment and compensation of the CCO. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:5%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Board recognizes that the reports it receives concerning risk management
matters are, by their nature, typically summaries of the relevant information. Moreover, the Board recognizes that not all risks that may affect the Fund can be identified in advance; that it may not be practical or cost-effective to eliminate or
mitigate certain risks; that it may be necessary to bear certain risks (such as investment-related risks) in seeking to achieve the Fund&#146;s investment objectives; and that the processes, procedures and controls employed to address certain risks
may be limited in their effectiveness. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:5%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Trustees and officers of the Fund, their year of birth, the position they
hold with the Fund, their term of office and length of time served, a description of their principal occupations during the past five years, the number of portfolios in the Fund Complex that the Trustee oversees and any other public company
directorships held by the Trustee are listed in the two tables immediately following. Except as shown, each Trustee&#146;s and officer&#146;s principal occupation and business experience for the last five years have been with the employer(s)
indicated, although in some cases the Trustee may have held different positions with such employer(s). </P>  <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>Independent Trustees*
</B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>
<TD></TD>
<TD VALIGN="bottom" WIDTH="5%"></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="5%"></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD WIDTH="35%"></TD>
<TD VALIGN="bottom" WIDTH="3%"></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="3%"></TD>
<TD WIDTH="10%"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="bottom" STYLE="BORDER-BOTTOM:1px solid #000000"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Name,&nbsp;Address,</B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Year&nbsp;of&nbsp;Birth</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>and&nbsp;Class**</B></P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" STYLE="BORDER-BOTTOM:1px solid #000000"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Position(s)</B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Held&nbsp;with</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>the&nbsp;Fund</B></P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="BORDER-BOTTOM:1px solid #000000"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Term&nbsp;of&nbsp;Office</B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>and&nbsp;Length&nbsp;of</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Time&nbsp;Served</B></P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="BORDER-BOTTOM:1px solid #000000"><B>Principal&nbsp;Occupation(s)<BR>During&nbsp;the&nbsp;Past&nbsp;5&nbsp;Years</B></TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="BORDER-BOTTOM:1px solid #000000"><B>Number&nbsp;of<BR>Portfolios&nbsp;in<BR>Fund&nbsp;Complex<BR>Overseen by<BR>Trustee ***</B></TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="BORDER-BOTTOM:1px solid #000000"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Other<BR>Directorshi</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>ps Held by<BR>Trustee<BR>During&nbsp;the<BR>Past 5 Years</B></P></TD></TR>


<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Hans&nbsp;W.&nbsp;Kertess<BR> <P STYLE="margin-bottom:0pt; margin-top:0pt; font-size:10pt; font-family:Times New Roman">1939</P> <P STYLE="font-size:12pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P>
<P STYLE="margin-bottom:1pt; margin-top:0pt; font-size:10pt; font-family:Times New Roman">Class I</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Chairman<BR>of the<BR>Board,<BR>Trustee</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Since&nbsp;2012</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">President, H. Kertess &amp; Co., a financial advisory company; and Senior Adviser (formerly Managing Director), Royal Bank of Canada Capital Markets (since 2004).</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="center">84<BR></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">None</TD></TR>
</TABLE>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">86 </P>


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<h5 align="left"><a href="#toc">Table of Contents</a></h5>


<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>
<TD></TD>
<TD VALIGN="bottom" WIDTH="6%"></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="6%"></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="3%"></TD>
<TD WIDTH="36%"></TD>
<TD VALIGN="bottom" WIDTH="3%"></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="3%"></TD>
<TD WIDTH="10%"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="bottom" STYLE="BORDER-BOTTOM:1px solid #000000"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Name,&nbsp;Address,</B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Year of Birth</B></P> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>and
Class**</B></P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" STYLE="BORDER-BOTTOM:1px solid #000000"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Position(s)</B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Held&nbsp;with</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>the&nbsp;Fund</B></P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="BORDER-BOTTOM:1px solid #000000"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Term&nbsp;of&nbsp;Office</B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>and&nbsp;Length of</B></P> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Time
Served</B></P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="BORDER-BOTTOM:1px solid #000000"><B>Principal&nbsp;Occupation(s)<BR>During&nbsp;the&nbsp;Past&nbsp;5&nbsp;Years</B></TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="BORDER-BOTTOM:1px solid #000000"><B>Number&nbsp;of<BR>Portfolios&nbsp;in<BR>Fund&nbsp;Complex<BR>Overseen by<BR>Trustee ***</B></TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="BORDER-BOTTOM:1px solid #000000"> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Other<BR>Directorships<BR>Held
by<BR>Trustee<BR>During&nbsp;the<BR>Past 5 Years</B></P></TD></TR>


<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Deborah&nbsp;A.<BR> DeCotis<P STYLE="margin-bottom:0pt; margin-top:0pt; font-size:10pt; font-family:Times New Roman">1952</P> <P STYLE="font-size:12pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P>
<P STYLE="margin-bottom:1pt; margin-top:0pt; font-size:10pt; font-family:Times New Roman">Class III</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Trustee</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Since&nbsp;2012</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Advisory Director, Morgan Stanley &amp; Co., Inc. (since 1996); Member, Circle Financial Group (since 2009); Member, Council on Foreign Relations (since 2013); Trustee, Smith College (since 2017); and Director, Watford Re (since
2017). Formerly, Co-Chair Special Projects Committee, Memorial Sloan Kettering (2005-2015); Trustee, Stanford University (2010-2015); Principal, LaLoop LLC, a retail accessories company (1999-2014); Director, Helena Rubenstein Foundation (1997-
2010); and Director, Armor Holdings (2002- 2010).</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="center">84</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">None</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Bradford&nbsp;K.<BR>Gallagher<BR> 1944<P STYLE="font-size:12pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P> <P STYLE="margin-bottom:1pt; margin-top:0pt; font-size:10pt; font-family:Times New Roman">Class II</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Trustee</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Since 2012</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Retired. Founder, Spyglass Investments LLC, a private investment vehicle (since 2001). Formerly, Chairman and Trustee, The Common Fund (2005-2014); Partner, New Technology Ventures Capital Management LLC, a venture capital fund
(2011-2013); Chairman and Trustee, Atlantic Maritime Heritage Foundation (2007- 2012); and Founder, President and CEO, Cypress Holding Company and Cypress Tree Investment Management Company (1995-2001).</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="center">84</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Formerly, Chairman&nbsp;and Trustee, Grail Advisors ETF Trust (2009- 2010); and Trustee, Nicholas-Applegate Institutional Funds (2007- 2010).</TD></TR>
</TABLE>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">87 </P>


<p Style='page-break-before:always'>
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<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>
<TD></TD>
<TD VALIGN="bottom" WIDTH="5%"></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="5%"></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="5%"></TD>
<TD WIDTH="39%"></TD>
<TD VALIGN="bottom" WIDTH="5%"></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="5%"></TD>
<TD WIDTH="11%"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="bottom" STYLE="BORDER-BOTTOM:1px solid #000000"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Name,&nbsp;Address,</B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Year of Birth</B></P> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>and
Class**</B></P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" STYLE="BORDER-BOTTOM:1px solid #000000"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Position(s)</B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Held&nbsp;with</B></P> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>the
Fund</B></P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="BORDER-BOTTOM:1px solid #000000"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Term&nbsp;of&nbsp;Office</B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>and Length of</B></P> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Time
Served</B></P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="BORDER-BOTTOM:1px solid #000000"><B>Principal&nbsp;Occupation(s)<BR>During&nbsp;the&nbsp;Past&nbsp;5&nbsp;Years</B></TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="BORDER-BOTTOM:1px solid #000000"><B>Number&nbsp;of<BR>Portfolios&nbsp;in<BR>Fund&nbsp;Complex<BR>Overseen by<BR>Trustee ***</B></TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="BORDER-BOTTOM:1px solid #000000"> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Other<BR>Directorships<BR>Held
by<BR>Trustee<BR>During&nbsp;the<BR>Past 5 Years</B></P></TD></TR>


<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">James&nbsp;A.<BR>Jacobson<BR> 1945<P STYLE="font-size:12pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P> <P STYLE="margin-bottom:1pt; margin-top:0pt; font-size:10pt; font-family:Times New Roman">Class II</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Trustee</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Since&nbsp;2012</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman">Retired. Trustee (since 2002) and Chairman of Investment Committee (since 2007), Ronald McDonald House of New York; and Trustee, New Jersey
City University (since 2014). Formerly, Vice Chairman and Managing Director, Spear, Leeds &amp; Kellogg Specialists, LLC, a specialist firm on the New York Stock Exchange (2003-2008).</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="center">84<BR></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Formerly, Trustee, Alpine Mutual Funds Complex consisting of 18 funds.</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">William&nbsp;B.<BR> <P STYLE="margin-bottom:0pt; margin-top:0pt; font-size:10pt; font-family:Times New Roman">Ogden, IV<BR>1945</P> <P STYLE="font-size:12pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P>
<P STYLE="margin-bottom:1pt; margin-top:0pt; font-size:10pt; font-family:Times New Roman">Class I</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Trustee</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Since 2012</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Retired. Formerly, Asset Management Industry Consultant; and Managing Director, Investment Banking Division of Citigroup Global Markets Inc.</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="center">84</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">None</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="40"></TD>
<TD HEIGHT="40" COLSPAN="2"></TD>
<TD HEIGHT="40" COLSPAN="2"></TD>
<TD HEIGHT="40" COLSPAN="2"></TD>
<TD HEIGHT="40" COLSPAN="2"></TD>
<TD HEIGHT="40" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Alan&nbsp;Rappaport<BR> <P STYLE="margin-bottom:0pt; margin-top:0pt; font-size:10pt; font-family:Times New Roman">1953</P> <P STYLE="font-size:12pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P>
<P STYLE="margin-bottom:1pt; margin-top:0pt; font-size:10pt; font-family:Times New Roman">Class I</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Trustee</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Since 2012</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Advisory Director (formerly Vice Chairman), Roundtable Investment Partners (since 2009); Adjunct Professor, New York University Stern School of Business (since 2011); Lecturer, Stanford University Graduate School of Business (since
2013); and Director, Victory Capital Holdings, Inc., an asset management firm (since 2013). Formerly, Member of Board of Overseers, NYU Langone Medical Center (2015-2016); Trustee, American Museum of Natural History (2005-2015); Trustee, NYU Langone
Medical Center (2007- 2015); Vice Chairman (formerly Chairman and President), U.S. Trust (formerly Private Bank of Bank of America, the predecessor entity of U.S. Trust) (2001- 2008).</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="center">84</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">None</TD></TR>
</TABLE>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">88 </P>


<p Style='page-break-before:always'>
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  <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>Interested Trustees </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>
<TD></TD>
<TD VALIGN="bottom" WIDTH="7%"></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="7%"></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="3%"></TD>
<TD WIDTH="34%"></TD>
<TD VALIGN="bottom" WIDTH="4%"></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="4%"></TD>
<TD></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="bottom" ALIGN="center" STYLE="BORDER-BOTTOM:1px solid #000000"><B>Name,&nbsp;Address,<BR>Year of Birth<BR>and Class**</B></TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" STYLE="BORDER-BOTTOM:1px solid #000000"><B>Position(s)<BR>Held&nbsp;with<BR>the&nbsp;Fund</B></TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="BORDER-BOTTOM:1px solid #000000"><B>Term&nbsp;of&nbsp;Office<BR>and Length of<BR>Time Served</B></TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="BORDER-BOTTOM:1px solid #000000"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Principal Occupation(s)</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>During the Past 5 Years</B></P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="BORDER-BOTTOM:1px solid #000000"><B>Number&nbsp;of<BR>Portfolios&nbsp;in<BR>Fund&nbsp;Complex<BR>Overseen by<BR>Trustee ***</B></TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="BORDER-BOTTOM:1px solid #000000"><B>Other<BR>Directorships<BR>Held by<BR>Trustee<BR>During the<BR>Past 5 Years</B></TD></TR>


<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Craig&nbsp;A.<BR> <P STYLE="margin-bottom:0pt; margin-top:0pt; font-size:10pt; font-family:Times New Roman">Dawson****</P> <P STYLE="margin-bottom:0pt; margin-top:0pt; font-size:10pt; font-family:Times New Roman">1968</P>
<P STYLE="font-size:12pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P> <P STYLE="margin-bottom:0pt; margin-top:0pt; font-size:10pt; font-family:Times New Roman">650 Newport</P>
<P STYLE="margin-bottom:0pt; margin-top:0pt; font-size:10pt; font-family:Times New Roman">Center<BR>Drive,&nbsp;Newport</P> <P STYLE="margin-bottom:0pt; margin-top:0pt; font-size:10pt; font-family:Times New Roman">Beach, CA</P>
<P STYLE="margin-bottom:0pt; margin-top:0pt; font-size:10pt; font-family:Times New Roman">92660</P> <P STYLE="font-size:12pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P>
<P STYLE="margin-bottom:1pt; margin-top:0pt; font-size:10pt; font-family:Times New Roman">Class II</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Trustee</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Since&nbsp;2014</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Managing Director and Head of PIMCO Europe, Middle East and Africa (since 2016). Director of a number of PIMCO&#146;s European investment vehicles and affiliates (since 2008). Formerly, Head of Strategic Business Management, PIMCO
(2014-2016), head of PIMCO&#146;s Munich office and head of European product management for PIMCO.</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="center">26</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">None</TD></TR>
</TABLE>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">89 </P>


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<TR>
<TD></TD>
<TD VALIGN="bottom" WIDTH="6%"></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="6%"></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="3%"></TD>
<TD WIDTH="38%"></TD>
<TD VALIGN="bottom" WIDTH="3%"></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="3%"></TD>
<TD></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="bottom" STYLE="BORDER-BOTTOM:1px solid #000000"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Name,&nbsp;Address,</B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Year of Birth</B></P> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>and
Class**</B></P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" STYLE="BORDER-BOTTOM:1px solid #000000"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Position(s)</B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Held&nbsp;with</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>the&nbsp;Fund</B></P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="BORDER-BOTTOM:1px solid #000000"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Term&nbsp;of&nbsp;Office</B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>and&nbsp;Length of</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Time&nbsp;Served</B></P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="BORDER-BOTTOM:1px solid #000000"><B>Principal&nbsp;Occupation(s)<BR>During&nbsp;the&nbsp;Past&nbsp;5&nbsp;Years</B></TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="BORDER-BOTTOM:1px solid #000000"><B>Number&nbsp;of<BR>Portfolios&nbsp;in<BR>Fund&nbsp;Complex<BR>Overseen by<BR>Trustee ***</B></TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="BORDER-BOTTOM:1px solid #000000"> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Other<BR>Directorships<BR>Held
by<BR>Trustee<BR>During&nbsp;the<BR>Past 5 Years</B></P></TD></TR>


<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">John&nbsp;C.<BR> Maney*****<P STYLE="margin-bottom:0pt; margin-top:0pt; font-size:10pt; font-family:Times New Roman">1959</P> <P STYLE="font-size:12pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P>
<P STYLE="margin-bottom:0pt; margin-top:0pt; font-size:10pt; font-family:Times New Roman">650&nbsp;Newport<BR>Center&nbsp;Drive,<BR>Newport&nbsp;Beach,<BR>CA 92660</P> <P STYLE="font-size:12pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P>
<P STYLE="margin-bottom:1pt; margin-top:0pt; font-size:10pt; font-family:Times New Roman">Class III</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Trustee</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Since&nbsp;2012</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman">Managing Director of Allianz Asset Management of America L.P. (since January 2005) and a member of the Management Board and Chief Operating
Officer of Allianz Asset Management of America L.P. (since November 2006). Formerly, Member of the Management Board of Allianz Global Investors Fund Management LLC (2007-2014) and Managing Director of Allianz Global Investors Fund Management LLC
(2011-2014).</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="center">26</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">None</TD></TR>
</TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="6%" VALIGN="top" ALIGN="left">*</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">&#147;Independent Trustees&#148; are those Trustees who are not &#147;interested persons&#148; (as defined in
Section&nbsp;2(a)(19) of the 1940 Act). </P></TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="6%" VALIGN="top" ALIGN="left">**</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">Unless otherwise indicated, the business address of the persons listed above is c/o Pacific Investment
Management Company LLC, 1633 Broadway, New York, New York 10019. </P></TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="6%" VALIGN="top" ALIGN="left">***</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">The term &#147;Fund Complex&#148; as used herein includes the Fund and the following registered investment
companies: PIMCO Municipal Income Fund, PIMCO California Municipal Income Fund, PIMCO New York Municipal Income Fund, PIMCO Municipal Income Fund II, PIMCO California Municipal Income Fund II, PIMCO New York Municipal Income Fund II, PIMCO Municipal
Income Fund III, PIMCO California Municipal Income Fund III, PIMCO New York Municipal Income Fund III, PIMCO Corporate&nbsp;&amp; Income Strategy Fund, PIMCO Corporate&nbsp;&amp; Income Opportunity Fund, PIMCO Income Opportunity Fund, PCM Fund,
Inc., PIMCO Dynamic Credit and Mortgage Income Fund, PIMCO High Income Fund, PIMCO Income Strategy Fund, PIMCO Income Strategy Fund II, PIMCO Global StocksPLUS<SUP STYLE="font-size:85%; vertical-align:top">&reg;</SUP>&amp; Income Fund and PIMCO
Strategic Income Fund, Inc., each series of PIMCO Managed Accounts Trust, PIMCO Flexible Credit Income Fund, AllianzGI Diversified Income&nbsp;&amp; Convertible Fund, AllianzGI Convertible&nbsp;&amp; Income Fund, AllianzGI Convertible&nbsp;&amp;
Income Fund II, AllianzGI NFJ Dividend, Interest&nbsp;&amp; Premium Strategy Fund, AllianzGI Equity&nbsp;&amp; Convertible Income Fund, AllianzGI Convertible&nbsp;&amp; Income 2024 Target Term Fund, each series of Allianz Funds, Allianz Funds
Multi-Strategy Trust, AllianzGI Institutional Multi-Series Trust and Premier Multi-Series VIT. </P></TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="6%" VALIGN="top" ALIGN="left">****</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">Mr.&nbsp;Dawson is an &#147;interested person&#148; of the Fund, as defined in Section&nbsp;2(a)(19) of the
1940 Act, due to his affiliation with PIMCO and its affiliates. </P></TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="6%" VALIGN="top" ALIGN="left">*****</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">Mr.&nbsp;Maney is an &#147;interested person&#148; of the Fund, as defined in Section&nbsp;2(a)(19) of the
1940 Act, due to his affiliation with Allianz Asset Management of America L.P. and its affiliates. </P></TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:5%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">In
accordance with the Fund&#146;s staggered board (see &#147;Anti-Takeover and Other Provisions in the Declaration of Trust&#148;), the Common Shareholders of the Fund elect Trustees to fill the vacancies of Trustees whose terms expire at each annual
meeting of Common Shareholders. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">90 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>Officers </B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>
<TD WIDTH="15%"></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD WIDTH="16%"></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD WIDTH="18%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="45%"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="bottom" ALIGN="center" STYLE="BORDER-BOTTOM:1px solid #000000"><B>Name,&nbsp;Address,&nbsp;</B>and&nbsp;<B>Year<BR>of Birth</B></TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" STYLE="BORDER-BOTTOM:1px solid #000000"><B>Position(s)&nbsp;Held&nbsp;with<BR>Fund</B></TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="BORDER-BOTTOM:1px solid #000000"><B>Term&nbsp;of&nbsp;Office&nbsp;and<BR>Length&nbsp;of&nbsp;Time&nbsp;Served</B></TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="BORDER-BOTTOM:1px solid #000000"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Principal Occupation(s) During the</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Past 5 Years</B></P></TD></TR>


<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman" ALIGN="center">Peter G.
Strelow<SUP STYLE="font-size:85%; vertical-align:top">1</SUP></P> <P STYLE="margin-top:0pt; margin-bottom:1pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman" ALIGN="center">1970</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="center">President</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="center">Since 2014</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="center">Managing Director and Co-Chief Operating Officer, PIMCO; President, PIMCO-Managed Funds, PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series&nbsp;VIT. Formerly,
Chief Administrative Officer, PIMCO.</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman" ALIGN="center">Youse Guia<SUP STYLE="font-size:85%; vertical-align:top">1</SUP></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman" ALIGN="center">1972</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="center">Chief Compliance Officer</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="center">Since 2014</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="center">Senior Vice President and Deputy Chief Compliance Officer, PIMCO. Chief Compliance Officer, PIMCO-Managed Funds. Formerly, Head of Compliance, Allianz Global Investors U.S. Holdings LLC and Chief Compliance Officer of
the Allianz Funds, Allianz Multi-Strategy Trust, Allianz Global Investors Sponsored Closed-End Funds, Premier Multi-Series VIT and The Korea Fund, Inc.</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman" ALIGN="center">Joshua D.
Ratner<SUP STYLE="font-size:85%; vertical-align:top">2</SUP></P> <P STYLE="margin-top:0pt; margin-bottom:1pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman" ALIGN="center">1976</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="center">Vice President, Secretary and Chief Legal Officer</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="center">Since 2014</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="center">Executive Vice President and Senior Counsel, PIMCO. Chief Legal Officer, PIMCO Investments LLC. Vice President, Secretary and Chief Legal Officer, PIMCO-Managed Funds. Vice President&#151;Senior Counsel, Secretary,
PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman" ALIGN="center">Ryan Leshaw<SUP STYLE="font-size:85%; vertical-align:top">1</SUP></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman" ALIGN="center">1980</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="center">Assistant Secretary</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="center">Since 2014</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="center">Senior Vice President and Senior Counsel, PIMCO. Assistant Secretary, PIMCO-Managed Funds, PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series&nbsp;VIT. Formerly,
Associate, Willkie Farr &amp; Gallagher LLP.</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman" ALIGN="center">Stacie D.
Anctil<SUP STYLE="font-size:85%; vertical-align:top">1</SUP></P> <P STYLE="margin-top:0pt; margin-bottom:1pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman" ALIGN="center">1969</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="center">Vice President</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="center">Since 2015</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="center">Executive Vice President, PIMCO. Vice President, PIMCO-Managed Funds, PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman" ALIGN="center">Eric D.
Johnson<SUP STYLE="font-size:85%; vertical-align:top">2</SUP></P> <P STYLE="margin-top:0pt; margin-bottom:1pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman" ALIGN="center">1970</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="center">Vice President</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="center">Since 2014</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="center">Executive Vice President, PIMCO. Vice President, PIMCO-Managed Funds, PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman" ALIGN="center">Bijal Parikh<SUP STYLE="font-size:85%; vertical-align:top">1</SUP></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman" ALIGN="center">1978</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="center">Vice President</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="center">Since March 2017</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="center">Senior Vice President, PIMCO. Vice President, PIMCO-Managed Funds, PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust and PIMCO Equity Series.</TD></TR></TABLE>

 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">91 </P>


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<TR>
<TD WIDTH="15%"></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD WIDTH="16%"></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD WIDTH="18%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="45%"></TD></TR>

<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman" ALIGN="center">William&nbsp;G.&nbsp;Galipeau<SUP
STYLE="font-size:85%; vertical-align:top">1</SUP></P> <P STYLE="margin-top:0pt; margin-bottom:1pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman" ALIGN="center">1974</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="center">Vice President</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="center">Since December 2017</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="center">Executive Vice President, PIMCO. Treasurer, PIMCO-Managed Funds. Vice President, PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman" ALIGN="center">Trent W.
Walker<SUP STYLE="font-size:85%; vertical-align:top">1</SUP></P> <P STYLE="margin-top:0pt; margin-bottom:1pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman" ALIGN="center">1974</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="center">Treasurer</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="center">Since&nbsp;December&nbsp;2017</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="center">Executive Vice President, PIMCO. Assistant Treasurer, PIMCO-Managed Funds. Treasurer, PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman" ALIGN="center">Erik C.
Brown<SUP STYLE="font-size:85%; vertical-align:top">1</SUP></P> <P STYLE="margin-top:0pt; margin-bottom:1pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman" ALIGN="center">1967</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="center">Assistant Treasurer</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="center">Since 2015</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="center">Executive Vice President, PIMCO. Assistant Treasurer, PIMCO-Managed Funds, PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman" ALIGN="center">Christopher&nbsp;M.&nbsp;Morin<SUP
STYLE="font-size:85%; vertical-align:top">1</SUP></P> <P STYLE="margin-top:0pt; margin-bottom:1pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman" ALIGN="center">1980</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="center">Assistant Treasurer</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="center">Since 2016</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="center">Vice President, PIMCO. Assistant Treasurer, PIMCO-Managed Funds, PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Formerly, Vice President of Operations,
Standard Life Investments USA; Assistant Vice President, Brown Brothers Harriman.</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman" ALIGN="center">Jason J.
Nagler<SUP STYLE="font-size:85%; vertical-align:top">2</SUP></P> <P STYLE="margin-top:0pt; margin-bottom:1pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman" ALIGN="center">1982</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="center">Assistant Treasurer</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="center">Since 2014</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="center">Vice President, PIMCO. Assistant Treasurer, PIMCO-Managed Funds, PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Formerly, Head of Mutual Fund Reporting,
GMO, and Assistant Treasurer, GMO Trust and GMO Series Trust Funds.</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman" ALIGN="center">Laura Melman<SUP STYLE="font-size:85%; vertical-align:top">2</SUP></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman" ALIGN="center">1966</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="center">Assistant Treasurer</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="center">Since March 2017</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="center">Senior Vice President, PIMCO. Assistant Treasurer, PIMCO-Managed Funds, PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman" ALIGN="center">Colleen
Miller<SUP STYLE="font-size:85%; vertical-align:top">2</SUP></P> <P STYLE="margin-top:0pt; margin-bottom:1pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman" ALIGN="center">1980</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="center">Assistant Treasurer</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="center">Since March 2017</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="center">Vice President, PIMCO. Assistant Treasurer, PIMCO-Managed Funds, PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Formerly, Vice President Cohen &amp;
Steers Capital Management.</TD></TR></TABLE>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">92 </P>


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<TD WIDTH="15%"></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD WIDTH="16%"></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD WIDTH="18%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="45%"></TD></TR>

<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman" ALIGN="center">Wu-Kwan Kit<SUP STYLE="font-size:85%; vertical-align:top">1</SUP></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman" ALIGN="center">1981</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="center">Assistant Secretary</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="center">Since March 2017</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="center">Vice President and Counsel, PIMCO. Assistant Secretary, PIMCO-Managed Funds, PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Formerly, Assistant General
Counsel, VanEck. Associates Corp.</TD></TR>
</TABLE>    <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left">1</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">The address of these officers is Pacific Investment Management Company LLC, 650 Newport Center Drive, Newport
Beach, California 92660. </P></TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left">2</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">The address of these officers is Pacific Investment Management Company LLC, 1633 Broadway, New York, New York
10019. </P></TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Each of the Fund&#146;s executive officers is an &#147;interested person&#148; of the Fund (as defined in
Section 2(a)(19) of the 1940 Act) as a result of his or her position(s) set forth in the table above. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><B>Trustee Qualifications</B>.
The Board has determined that each Trustee is qualified to serve as such based on several factors (none of which alone is decisive). Each Trustee has served in such role for several years. Accordingly, each Trustee is knowledgeable about the
Fund&#146;s business and service provider arrangements, in part because he or she has also served for several years as trustee or director to a number of other investment companies advised by the Investment Manager and its affiliates with similar
arrangements to that of the Fund. Among the factors the Board considered when concluding that an individual is qualified to serve on the Board were the following: (i)&nbsp;the individual&#146;s business and professional experience and
accomplishments; (ii)&nbsp;the individual&#146;s ability to work effectively with other members of the Board; (iii)&nbsp;the individual&#146;s prior experience, if any, serving on the boards of public companies (including, where relevant, other
investment companies) and other complex enterprises and organizations; and (iv)&nbsp;how the individual&#146;s skills, experiences and attributes would contribute to an appropriate mix of relevant skills and experience on the Board. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">In respect of each current Trustee, the individual&#146;s substantial professional accomplishments and prior experience, including, in some
cases, in fields related to the operations of the Fund, were a significant factor in the determination by the Board that the individual is qualified to serve as a Trustee of the Fund. The following is a summary of various qualifications, experiences
and skills of each Trustee (in addition to business experience during the past five years set forth in the table above) that contributed to the Board&#146;s conclusion that an individual is qualified to serve on the Board. References to
qualifications, experiences and skills are not intended to hold out the Board or individual Trustees as having any special expertise or experience, and shall not impose any greater responsibility or liability on any such person or on the Board by
reason thereof. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><B>Hans W. Kertess</B> &#151; Mr.&nbsp;Kertess has substantial executive experience in the investment management
industry. He is the president of a financial advisory company, H. Kertess&nbsp;&amp; Co. and a Senior Adviser of Royal Bank of Canada Capital Markets, and formerly served as a Managing Director of Royal Bank of Canada Capital Markets. He has
significant expertise in the investment banking industry. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><B>Craig A. Dawson &#151;</B> Mr.&nbsp;Dawson has substantial executive
experience in the investment management industry. Mr.&nbsp;Dawson is a Managing Director and Head of PIMCO Europe, Middle East and Africa. In that role he is in charge of guiding PIMCO&#146;s business initiatives in Europe, the </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">93 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">
Middle East and Africa. Prior to taking on this position, Mr.&nbsp;Dawson was PIMCO&#146;s Head of Strategic Business Management. Mr.&nbsp;Dawson also serves as a Director of a number of
PIMCO&#146;s European investment vehicles and affiliates. Because of his familiarity with PIMCO and its affiliates, Mr.&nbsp;Dawson serves as an important information resource for the Independent Trustees and as a facilitator of communication with
PIMCO. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><B>Deborah A. DeCotis</B> &#151; Ms.&nbsp;DeCotis has substantial senior executive experience in the investment banking industry,
having served as a Managing Director for Morgan Stanley. She has extensive board experience and experience in oversight of investment management functions through her experience as a former Director of the Helena Rubenstein Foundation, Stanford
Graduate School of Business and Armor Holdings. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><B>Bradford K. Gallagher</B> &#151; Mr.&nbsp;Gallagher has substantial executive and
board experience in the financial services and investment management industries. He has served as director to several other investment companies. Having served on the Operating Committee of Fidelity Investments and as a Managing Director and
President of Fidelity Investments Institutional Services Company, he provides the Fund with significant asset management industry expertise. He also brings significant securities industry experience, having served as a developer and founder of
several enterprises and private investment vehicles. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><B>James A. Jacobson </B>&#151; Mr.&nbsp;Jacobson has substantial executive and
board experience in the financial services industry. He served for more than 15 years as a senior executive at a New York Stock Exchange (the &#147;NYSE&#148;) specialist firm. He has also served on the NYSE Board of Directors, including terms as
Vice Chair. As such, he provides significant expertise on matters relating to portfolio brokerage and trade execution. He also provides the Fund with significant financial expertise, serves as the Audit Oversight Committee&#146;s Chair and has been
determined by the Board to be an &#147;audit committee financial expert.&#148; </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><B>John C. Maney</B> &#151; Mr.&nbsp;Maney has substantial
executive and board experience in the investment management industry. He has served in a variety of senior-level positions with investment advisory firms affiliated with the Investment Manager. Because of his familiarity with the Investment Manager
and affiliated entities, he serves as an important information resource for the Independent Trustees and as a facilitator of communication with Allianz Asset Management of America L.P., PIMCO&#146;s U.S. parent company. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><B>William B. Ogden, IV</B> &#151; Mr.&nbsp;Ogden has substantial senior executive experience in the investment banking industry. He served as
Managing Director at Citigroup, where he established and led the firm&#146;s efforts to raise capital for, and provide mergers and acquisition advisory services to, asset managers and investment advisers. He also has significant expertise with fund
products through his senior-level responsibility for originating and underwriting a broad variety of such products. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><B>Alan Rappaport</B>
&#151; Mr.&nbsp;Rappaport has substantial senior executive experience in the financial services industry. He formerly served as Chairman and President of the Private Bank of Bank of America and as Vice Chairman of U.S. Trust. He is currently an
Advisory Director of an investment firm. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">94 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Committees of the Board of Trustees </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><B>Audit Oversight Committee.</B> The Board has established an Audit Oversight Committee, currently consisting of Messrs. Gallagher, Jacobson,
Kertess, Ogden, Rappaport and Ms.&nbsp;DeCotis, each of whom is an Independent Trustee. Mr.&nbsp;Jacobson is the current Chair of the Fund&#146;s Audit Oversight Committee. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Audit Oversight Committee provides oversight with respect to the internal and external accounting and auditing procedures of the Fund and,
among other things, determines the selection of an independent registered public accounting firm for the Fund and considers the scope of the audit, approves all audit and permitted non-audit services proposed to be performed by those auditors on
behalf of the Fund and approves non-audit services to be performed by the auditors for certain affiliates, including PIMCO and entities in a control relationship with PIMCO that provide services to the Fund where the engagement relates directly to
the operations and financial reporting of the Fund. The Audit Oversight Committee considers the possible effect of those services on the independence of the Fund&#146;s independent registered public accounting firm. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman">During the fiscal year ended June&nbsp;30, 2017 the Audit Oversight Committee met six times. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><B>Nominating Committee.</B> The Board has established a Nominating Committee composed solely of Independent Trustees, currently consisting of
Messrs. Gallagher, Jacobson, Kertess, Ogden, Rappaport and Ms.&nbsp;DeCotis. The Nominating Committee is responsible for reviewing and recommending qualified candidates to the Board in the event that a position is vacated or created or when Trustees
are to be re-elected. During the fiscal year ended June&nbsp;30, 2017 the Nominating Committee met one time. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><I>Qualifications,
Evaluation and Identification of Trustee Nominees</I>. The Nominating Committee of the Fund requires that Trustee candidates have a college degree or equivalent business experience. When evaluating candidates, the Nominating Committee may take into
account a wide variety of factors including, but not limited to: (i)&nbsp;availability and commitment of a candidate to attend meetings and perform his or her responsibilities on the Board, (ii)&nbsp;relevant industry and related experience,
(iii)&nbsp;educational background, (iv)&nbsp;ability, judgment and expertise and (v)&nbsp;overall diversity of the Board&#146;s composition. The process of identifying nominees involves the consideration of candidates recommended by one or more of
the following sources: (i)&nbsp;the Fund&#146;s current Trustees, (ii)&nbsp;the Fund&#146;s officers, (iii)&nbsp;the Fund&#146;s investment adviser, (iv) the Fund&#146;s shareholders and (v)&nbsp;any other source the Committee deems to be
appropriate. The Nominating Committee may, but is not required to, retain a third-party search firm at the Fund&#146;s expense to identify potential candidates. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><I>Consideration of Candidates Recommended by Stockholders</I>. The Nominating Committee will review and consider nominees recommended by
shareholders to serve as Trustee, provided that the recommending shareholder follows the &#147;Procedures for Shareholders to Submit Nominee Candidates&#148;, which are set forth as Appendix A to the Fund&#146;s Nominating Committee Charter and
attached as Appendix A to this Statement of Additional Information. Among other requirements, these procedures provide that the recommending shareholder must submit any recommendation in writing to the Fund, to the attention of the Fund&#146;s
Secretary, at the address of the principal executive offices of the Fund. Once each quarter, if any shareholder recommendations have been received by the Secretary during the quarter, the Secretary will inform the Committee of the new shareholder
recommendations. Because the Fund does not hold annual or other regular meetings of shareholders for the purpose of electing Trustees, the Committee will accept shareholder recommendations on a continuous basis. Any recommendation must include
certain biographical </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">95 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">
and other information regarding the candidate and the recommending shareholder, and must include a written and signed consent of the candidate to be named as a nominee and to serve as a Trustee
if elected. The foregoing description of the requirements is only a summary. Please refer to Appendix A to the Nominating Committee Charter, which is attached as Appendix A to this Statement of Additional Information. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Nominating Committee has full discretion to reject nominees recommended by shareholders, and there is no assurance that any such person
properly recommended and considered by the Committee will be nominated for election to the Board of Trustees. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><I>Diversity</I>. The
Nominating Committee takes diversity of a particular nominee and overall diversity of the Board into account when considering and evaluating nominees for Trustee. While the Committee has not adopted a particular definition of diversity, when
considering a nominee&#146;s and the Board&#146;s diversity, the Committee generally considers the manner in which each nominee&#146;s professional experience, education, expertise in matters that are relevant to the oversight of the Fund (e.g.,
investment management, distribution, accounting, trading, compliance, legal), general leadership experience, and life experience are complementary and, as a whole, contribute to the ability of the Board to oversee the Fund. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><B>Valuation Oversight Committee.</B> The Board has established a Valuation Oversight Committee, which currently consists of currently
consisting of Messrs. Gallagher, Jacobson, Kertess, Ogden and Rappaport and Ms.&nbsp;DeCotis. Mr.&nbsp;Ogden is the Chair of the Valuation Oversight Committee. The Valuation Oversight Committee has been delegated responsibility by the Board for
overseeing determination of the fair value of the Fund&#146;s portfolio securities and other assets on behalf of the Board in accordance with the Fund&#146;s valuation procedures. The Valuation Oversight Committee reviews and approves procedures for
the fair valuation of the Fund&#146;s portfolio securities and periodically reviews information from PIMCO regarding fair value determinations made pursuant to Board-approved procedures, and makes related recommendations to the full Board and
assists the full Board in resolving particular fair valuation and other valuation matters. In certain circumstances as specified in the Fund&#146;s valuation policies, the Valuation Oversight Committee may also determine the fair value of portfolio
holdings after consideration of all relevant factors, which determinations shall be reported to the full Board. During the fiscal year ended June&nbsp;30, 2017 the Valuation Oversight Committee met three times. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><B>Compensation Committee.</B> The Board has established a Compensation Committee, which currently consists of Messrs. Gallagher, Jacobson,
Kertess, Ogden, Rappaport and Ms.&nbsp;DeCotis. The Compensation Committee meets as the Board deems necessary to review and make recommendations regarding compensation payable to the Trustees who are not directors, officers, partners or employees of
PIMCO or any entity controlling, controlled by or under common control with PIMCO. During the fiscal year ended June&nbsp;30, 2017 the Compensation Committee met one time. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><B>Contracts Committee.</B> The Board of the Fund has established a Contracts Committee currently consisting of Messrs. Gallagher, Jacobson,
Kertess, Ogden, Rappaport and Ms.&nbsp;DeCotis. Ms.&nbsp;DeCotis is the Chair of the Fund&#146;s Contracts Committee. The Contracts Committee meets as the Board deems necessary to review the performance of, and the reasonableness of the fees paid
to, as applicable, the Fund&#146;s investment adviser(s) and any sub-adviser(s), administrators(s) and principal underwriters(s) and to make recommendations to the Board regarding the approval and continuance of the Fund&#146;s contractual
arrangements for investment advisory, sub-advisory, administrative and distribution services, as applicable. During the fiscal year ended June&nbsp;30, 2017 the Contracts Committee met two times. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">96 </P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>

  <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><B>Performance Committee.</B> The Board has established a Performance Committee, which
consists of Messrs. Gallagher, Jacobson, Kertess, Ogden, Rappaport, Maney and Dawson and Ms.&nbsp;DeCotis. Mr.&nbsp;Rappaport is the Chair of the Performance Committee. The Performance Committee&#146;s responsibilities include reviewing the
performance of the Fund and any changes in investment philosophy, approach and personnel of the Investment Manager. The Performance Committee did not meet during the fiscal year ended June&nbsp;30, 2017. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Securities Ownership </B></P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">For each
Trustee, the following table discloses the dollar range of equity securities in the Fund beneficially owned by the Trustee and, on an aggregate basis, in any registered investment companies overseen by the Trustee within the Fund&#146;s family of
investment companies as of December&nbsp;31, 2016: </P>  <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="94%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>
<TD WIDTH="24%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="21%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="53%"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="bottom" ALIGN="center"><B>Name of Trustee</B></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center"><B>Dollar Range of<BR>Equity Securities in<BR>the Fund</B></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center"><B>Aggregate Dollar Range of Equity Securities in<BR>All Registered Investment Companies Overseen<BR>by Trustee in Family of Investment Companies*</B></TD></TR>


<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR BGCOLOR="#cceeff" STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Independent Trustees</B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Bradford K. Gallagher</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">None</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">Over $100,000</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">James A. Jacobson</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">None</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">Over $100,000</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Hans W. Kertess</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">Over $100,000</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">Over $100,000</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">William B. Ogden, IV</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">None</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">Over $100,000</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Alan Rappaport Over</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">None</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">Over $100,000</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Deborah A. DeCotis</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">$10,001-$50,000</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">Over $100,000</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Interested Trustees</B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD></TR>
<TR BGCOLOR="#cceeff" STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">John C. Maney</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">Over $100,000</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">Over $100,000</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Craig A. Dawson</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">None</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">Over $100,000</TD></TR>
</TABLE>  <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="3%" VALIGN="top" ALIGN="left">*</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">The term &#147;Family of Investment Companies&#148; as used herein includes the Fund and the following
registered investment companies: PIMCO Municipal Income Fund, PIMCO California Municipal Income Fund, PIMCO New York Municipal Income Fund, PIMCO Municipal Income Fund II, PIMCO California Municipal Income Fund II, PIMCO New York Municipal Income
Fund II, PIMCO Municipal Income Fund III, PIMCO California Municipal Income Fund III, PIMCO New York Municipal Income Fund III, PIMCO Corporate&nbsp;&amp; Income Opportunity Fund, PIMCO Corporate&nbsp;&amp; Income Strategy Fund, PIMCO Income
Opportunity Fund, PCM Fund, Inc., PIMCO Dynamic Credit and Mortgage Income Fund, PIMCO High Income Fund, PIMCO Income Strategy Fund, PIMCO Income Strategy Fund II, PIMCO Global
StocksPLUS<SUP STYLE="font-size:85%; vertical-align:top">&reg;</SUP>&amp; Income Fund, PIMCO Strategic Income Fund, Inc., and PIMCO Flexible Credit Income Fund, and each series of PIMCO Managed Accounts Trust. </P></TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">To the Fund&#146;s knowledge, the following table provides information regarding each class of securities owned beneficially in an investment
adviser or principal underwriter of the Fund, or a person (other than a registered investment company) directly or indirectly controlling, controlled by, or under common control with an investment adviser or principal underwriter of the Fund as of
December&nbsp;31, 2016 by Independent Trustees and their immediate family members: </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>
<TD WIDTH="17%"></TD>
<TD VALIGN="bottom"></TD>
<TD WIDTH="15%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="16%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="16%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="16%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="15%"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="bottom" ALIGN="center" STYLE="BORDER:1px solid #000000; padding-left:8pt"><B>Name of Trustee</B></TD>
<TD VALIGN="bottom" STYLE=" BORDER-TOP:1px solid #000000; BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="top" STYLE="BORDER-TOP:1px solid #000000; BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Name of
Owners</B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>and Relations to</B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Trustee</B></P> <P STYLE="font-size:2pt; margin-top:0pt; margin-bottom:1pt" align="left">&nbsp;</P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-TOP:1px solid #000000; BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="top" ALIGN="center" STYLE="BORDER-TOP:1px solid #000000; BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000"><B>Company</B></TD>
<TD VALIGN="bottom" STYLE=" BORDER-TOP:1px solid #000000; BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="top" ALIGN="center" STYLE="BORDER-TOP:1px solid #000000; BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000"><B>Title of<BR>Class</B></TD>
<TD VALIGN="bottom" STYLE=" BORDER-TOP:1px solid #000000; BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="top" ALIGN="center" STYLE="BORDER-TOP:1px solid #000000; BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Value
of</B></P> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Securities</B></P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-TOP:1px solid #000000; BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="top" ALIGN="center" STYLE="BORDER-TOP:1px solid #000000; BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000; padding-right:2pt">
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Percent of</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Class</B></P></TD></TR>


<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" STYLE="BORDER-LEFT:1px solid #000000; BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000; padding-left:8pt">
<P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Deborah&nbsp;A.&nbsp;DeCotis</P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000">None</TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000">N/A</TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000">N/A</TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000">N/A</TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000; padding-right:2pt">N/A</TD></TR>
</TABLE>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">97 </P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>


<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>
<TD WIDTH="17%"></TD>
<TD VALIGN="bottom"></TD>
<TD WIDTH="15%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="16%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="16%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="16%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="15%"></TD></TR>


<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" STYLE="BORDER:1px solid #000000; padding-left:8pt"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Bradford&nbsp;K.&nbsp;Gallagher</P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-TOP:1px solid #000000; BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="BORDER-TOP:1px solid #000000; BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000">None</TD>
<TD VALIGN="bottom" STYLE=" BORDER-TOP:1px solid #000000; BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="BORDER-TOP:1px solid #000000; BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000">N/A</TD>
<TD VALIGN="bottom" STYLE=" BORDER-TOP:1px solid #000000; BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="BORDER-TOP:1px solid #000000; BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000">N/A</TD>
<TD VALIGN="bottom" STYLE=" BORDER-TOP:1px solid #000000; BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="BORDER-TOP:1px solid #000000; BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000">N/A</TD>
<TD VALIGN="bottom" STYLE=" BORDER-TOP:1px solid #000000; BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="BORDER-TOP:1px solid #000000; BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000; padding-right:2pt">N/A</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" STYLE="BORDER-LEFT:1px solid #000000; BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000; padding-left:8pt">
<P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">James&nbsp;A.&nbsp;Jacobson</P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000">None</TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000">N/A</TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000">N/A</TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000">N/A</TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000; padding-right:2pt">N/A</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" STYLE="BORDER-LEFT:1px solid #000000; BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000; padding-left:8pt">
<P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Hans W. Kertess</P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000">None</TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000">N/A</TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000">N/A</TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000">N/A</TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000; padding-right:2pt">N/A</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" STYLE="BORDER-LEFT:1px solid #000000; BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000; padding-left:8pt">
<P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">William&nbsp;B.&nbsp;Ogden,&nbsp;IV<SUP STYLE="font-size:85%; vertical-align:top">1</SUP></P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000">None</TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000">N/A</TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000">N/A</TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000">N/A</TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000; padding-right:2pt">N/A</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" STYLE="BORDER-LEFT:1px solid #000000; BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000; padding-left:8pt">
<P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Alan Rappaport</P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000">None</TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000">N/A</TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000">N/A</TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000">N/A</TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000; padding-right:2pt">N/A</TD></TR>
</TABLE>  <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><SUP STYLE="font-size:85%; vertical-align:top">1</SUP>&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">Mr.&nbsp;Ogden owns a less than 1% limited liability company interest in PIMCO Global Credit Opportunity
Onshore Fund LLC, a PIMCO-sponsored private investment vehicle. </P></TD></TR></TABLE>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">As of November 30, 2017, the Fund&#146;s officers
and Trustees as a group owned less than 1% of the outstanding Common Shares. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">As of December 1, 2017, to the knowledge of the Fund, the
following entities owned beneficially or of record 5% or more of the Fund&#146;s outstanding equity securities. To the knowledge of the Fund, no other person owned beneficially or of record 5% or more of the Fund&#146;s outstanding equity securities
on such date. </P>  <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="95%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:12pt" ALIGN="center">


<TR>
<TD WIDTH="50%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="35%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="13%"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="middle" ALIGN="center" STYLE="BORDER:1px solid #000000; padding-left:8pt"><FONT STYLE="font-size:12pt">FUND NAME</FONT></TD>
<TD VALIGN="bottom" STYLE=" BORDER-TOP:1px solid #000000; BORDER-BOTTOM:1px solid #000000">&nbsp;&nbsp;</TD>
<TD VALIGN="middle" ALIGN="center" STYLE="BORDER-TOP:1px solid #000000; BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000">REGISTRATION</TD>
<TD VALIGN="bottom" STYLE=" BORDER-TOP:1px solid #000000; BORDER-BOTTOM:1px solid #000000">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="BORDER-TOP:1px solid #000000; BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000; padding-right:2pt">PERCENTAGE<BR>OF<BR>OUTSTANDING<BR>SHARES OF<BR>FUND OWNED<BR>OF RECORD</TD></TR>


<TR BGCOLOR="#cceeff" STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:12pt">
<TD VALIGN="middle" STYLE="BORDER-LEFT:1px solid #000000; BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000; padding-left:8pt">
<P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:12pt; font-family:Times New Roman">PIMCO Dynamic Income Fund</P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE="BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000"> <P STYLE="font-size:2pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">CHARLES SCHWAB &amp; CO INC<BR>101 MONTGOMERY ST<BR>SAN FRANCISCO CA 94104-4151</P>
<P STYLE="font-size:2pt; margin-top:0pt; margin-bottom:1pt" align="left">&nbsp;</P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;&nbsp;</TD>
<TD VALIGN="middle" ALIGN="center" STYLE="BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000; padding-right:2pt">11.95%</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:12pt">
<TD VALIGN="middle" STYLE="BORDER-LEFT:1px solid #000000; BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000; padding-left:8pt">
<P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:12pt; font-family:Times New Roman">PIMCO Dynamic Income Fund</P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE="BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000"> <P STYLE="font-size:2pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">MERRILL LYNCH PROFESSIONAL<BR>CLEARING CORP.<BR>222 BROADWAY<BR>NEW YORK, NY 10038</P>
<P STYLE="font-size:2pt; margin-top:0pt; margin-bottom:1pt" align="left">&nbsp;</P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;&nbsp;</TD>
<TD VALIGN="middle" ALIGN="center" STYLE="BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000; padding-right:2pt">9.77%</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:12pt">
<TD VALIGN="middle" STYLE="BORDER-LEFT:1px solid #000000; BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000; padding-left:8pt">
<P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:12pt; font-family:Times New Roman">PIMCO Dynamic Income Fund</P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE="BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000"> <P STYLE="font-size:2pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">MORGAN STANLEY SMITH BARNEY<BR>HARBORSIDE FINANCIAL CENTER,PLAZA 2<BR>JERSEY CITY, NJ 07311</P>
<P STYLE="font-size:2pt; margin-top:0pt; margin-bottom:1pt" align="left">&nbsp;</P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;&nbsp;</TD>
<TD VALIGN="middle" ALIGN="center" STYLE="BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000; padding-right:2pt">10.70%</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:12pt">
<TD VALIGN="middle" STYLE="BORDER-LEFT:1px solid #000000; BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000; padding-left:8pt">
<P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:12pt; font-family:Times New Roman">PIMCO Dynamic Income Fund</P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE="BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000"> <P STYLE="font-size:2pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">NATIONAL FINANCIAL SERVICES LLC<BR>200 LIBERTY ST, ONE WORLD FINANCIAL CENTER<BR>NEW YORK NY 10281-1003</P>
<P STYLE="font-size:2pt; margin-top:0pt; margin-bottom:1pt" align="left">&nbsp;</P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;&nbsp;</TD>
<TD VALIGN="middle" ALIGN="center" STYLE="BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000; padding-right:2pt">17.90%</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:12pt">
<TD VALIGN="middle" STYLE="BORDER-LEFT:1px solid #000000; BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000; padding-left:8pt">
<P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:12pt; font-family:Times New Roman">PIMCO Dynamic Income Fund</P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE="BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000"> <P STYLE="font-size:2pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">PERSHING LLC<BR>1 PERSHING PLZ<BR>JERSEY CITY, NJ 07399-000</P>
<P STYLE="font-size:2pt; margin-top:0pt; margin-bottom:1pt" align="left">&nbsp;</P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;&nbsp;</TD>
<TD VALIGN="middle" ALIGN="center" STYLE="BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000; padding-right:2pt">5.96%</TD></TR>
</TABLE>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">98 </P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>


<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="95%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:12pt" ALIGN="center">


<TR>
<TD WIDTH="58%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="35%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="5%"></TD></TR>


<TR BGCOLOR="#cceeff" STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:12pt">
<TD VALIGN="middle" STYLE="BORDER:1px solid #000000; padding-left:8pt"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:12pt; font-family:Times New Roman">PIMCO Dynamic Income Fund</P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-TOP:1px solid #000000; BORDER-BOTTOM:1px solid #000000">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE="BORDER-TOP:1px solid #000000; BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000"> <P STYLE="font-size:2pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">UBS FINANCIAL<BR>499 WASHINGTON BLVD 9TH F<BR>&nbsp;&nbsp;&nbsp;JERSEY CITY, NJ 07310-2055</P>
<P STYLE="font-size:2pt; margin-top:0pt; margin-bottom:1pt" align="left">&nbsp;</P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-TOP:1px solid #000000; BORDER-BOTTOM:1px solid #000000">&nbsp;&nbsp;</TD>
<TD VALIGN="middle" ALIGN="center" STYLE="BORDER-TOP:1px solid #000000; BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000; padding-right:2pt">6.38%</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:12pt">
<TD VALIGN="middle" STYLE="BORDER-LEFT:1px solid #000000; BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000; padding-left:8pt">
<P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:12pt; font-family:Times New Roman">PIMCO Dynamic Income Fund</P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE="BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000"> <P STYLE="font-size:2pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">FIRST CLEARING LLC<BR>2801 MARKET ST<BR>SAINT LOUIS, MO 63103-2523</P>
<P STYLE="font-size:2pt; margin-top:0pt; margin-bottom:1pt" align="left">&nbsp;</P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;&nbsp;</TD>
<TD VALIGN="middle" ALIGN="center" STYLE="BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000; padding-right:2pt">5.26%</TD></TR>
</TABLE>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Trustees&#146; Compensation </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Each of the Independent Trustees also serves as a trustee of PIMCO Municipal Income Fund, PIMCO California Municipal Income Fund, PIMCO New
York Municipal Income Fund, PIMCO Municipal Income Fund II, PIMCO California Municipal Income Fund II, PIMCO New York Municipal Income Fund II, PIMCO Municipal Income Fund III, PIMCO California Municipal Income Fund III, PIMCO New York Municipal
Income Fund III, PIMCO Corporate&nbsp;&amp; Income Strategy Fund, PIMCO Corporate&nbsp;&amp; Income Opportunity Fund, PIMCO High Income Fund, PIMCO Income Opportunity Fund, PIMCO Income Strategy Fund, PIMCO Income Strategy Fund II, PIMCO Global
StocksPLUS<SUP STYLE="font-size:85%; vertical-align:top">&reg;</SUP>&nbsp;&amp; Income Fund, PCM Fund, Inc., PIMCO Strategic Income Fund, Inc., and PIMCO Dynamic Credit and Mortgage Income Fund, each a closed-end fund for which the Investment
Manager serves as investment manager (together, the &#147;PIMCO Closed-End Funds&#148;), PIMCO Flexible Credit Income Fund, a closed-end management investment company that is operated as an &#147;interval fund&#148; for which PIMCO serves as
investment manager (&#147;PFLEX&#148;), and PIMCO Managed Accounts Trust, an open-end management investment company with multiple series for which PIMCO serves as investment adviser and administrator (the &#147;Trust&#148; and, together with the
Fund, the PIMCO Closed-End Funds, and PFLEX, the &#147;PIMCO-Managed Funds&#148;). </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">In addition, each of the Independent Trustees also
serves as a trustee of AllianzGI Convertible&nbsp;&amp; Income Fund, AllianzGI Convertible&nbsp;&amp; Income Fund II, AllianzGI NFJ Dividend, Interest&nbsp;&amp; Premium Strategy Fund, AllianzGI Equity&nbsp;&amp; Convertible Income Fund, AllianzGI
Diversified Income&nbsp;&amp; Convertible Fund, AllianzGI Convertible&nbsp;&amp; Income 2024 Target Term Fund, Allianz Funds, Allianz Funds Multi-Strategy Trust, AllianzGI Institutional Multi-Series Trust and Premier Multi-Series VIT, (together, the
&#147;Allianz-Managed Funds&#148;), for which Allianz Global Investors U.S. LLC, an affiliate of PIMCO, serves as investment manager. The Independent Trustees receive separate compensation from the Allianz Managed Funds in addition to amounts
received for service on the Boards of the PIMCO-Managed Funds. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Each of the PIMCO-Managed Funds holds joint meetings of their Boards
of Trustees whenever possible. Each Independent Trustee receives annual compensation of $225,000 for his or her service on the Boards of the PIMCO-Managed Funds, payable quarterly. The Independent Chairman of the Boards receives an additional
$75,000 per year, payable quarterly. The Audit Oversight Committee Chairman receives an additional $50,000 annually, payable quarterly. Trustees are also reimbursed for meeting-related expenses. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Each Trustee&#146;s compensation for his or her service as a Trustee on the Boards of the PIMCO-Managed Funds and other costs in connection
with joint meetings of such Funds are allocated </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">99 </P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>

  <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">
among the PIMCO-Managed Funds, as applicable, on the basis of fixed percentages as among the Fund, the Trust, PFLEX and the PIMCO Closed-End Funds. Trustee compensation and other costs are then
further allocated <I>pro rata </I>among the individual funds within each grouping based on each such fund&#146;s relative net assets. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund has no employees. The Fund&#146;s officers, Mr.&nbsp;Dawson and Mr.&nbsp;Maney, are compensated by PIMCO or its affiliates, as
applicable. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Trustees do not receive any pension or retirement benefits from the Fund or the Fund Complex (see below). </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The following table provides information concerning the compensation paid to the Trustees for the fiscal year ended June&nbsp;30, 2017 for the
Fund and the compensation received by the Trustees for serving as Trustees of the Fund and other funds in the same &#147;Fund Complex&#148; as the Fund. Each officer and each Trustee who is a director, officer, partner, member or employee of the
Investment Manager, or of any entity controlling, controlled by or under common control with the Investment Manager, including any Interested Trustee, serves without any compensation from the Fund. </P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="84%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>
<TD WIDTH="35%"></TD>
<TD VALIGN="bottom" WIDTH="13%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="13%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="13%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="13%"></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" ALIGN="center" STYLE="BORDER-BOTTOM:1px solid #000000"><B>Name of Trustee</B></TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="BORDER-BOTTOM:1px solid #000000"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Aggregate<BR>compensation</B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>from the Fund</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>for&nbsp;the&nbsp;Fiscal&nbsp;Year<BR>Ended&nbsp;June&nbsp;30,<BR>2017**</B></P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="BORDER-BOTTOM:1px solid #000000"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Pension or</B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Retirement</B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Benefits<BR>Accrued</B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>as&nbsp;Part&nbsp;of&nbsp;Fund</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Expenses</B></P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="BORDER-BOTTOM:1px solid #000000"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Estimated&nbsp;Annual</B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Benefits Upon</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Retirement</B></P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="BORDER-BOTTOM:1px solid #000000"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Total&nbsp;Compensation<BR>from the Fund</B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Complex Paid to the</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Trustees for the<BR>Calendar&nbsp;Year&nbsp;Ending<BR>December&nbsp;31, 2016*</B></P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;</TD></TR>


<TR BGCOLOR="#cceeff" STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" ALIGN="center"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Trustees</B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" ALIGN="center"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman" ALIGN="center">Deborah&nbsp;A.&nbsp;DeCotis</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">$19,913</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">N/A</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">N/A</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">$450,000</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" ALIGN="center"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman" ALIGN="center">Bradford&nbsp;K.&nbsp;Gallagher</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">$19,913</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">N/A</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">N/A</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">$450,000</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" ALIGN="center"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman" ALIGN="center">James A. Jacobson</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">$24,338</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">N/A</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">N/A</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">$525,000</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" ALIGN="center"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman" ALIGN="center">Hans W. Kertess</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">$26,551</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">N/A</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">N/A</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">$525,000</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" ALIGN="center"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman" ALIGN="center">William&nbsp;B.&nbsp;Ogden,&nbsp;IV</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">$19,913</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">N/A</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">N/A</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">$450,000</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" ALIGN="center"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman" ALIGN="center">Alan Rappaport</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">$19,913</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">N/A</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">N/A</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">$450,000</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
</TABLE>  <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:7.5pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="3%" VALIGN="top" ALIGN="left">*</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:7.5pt">In addition to the PIMCO-Managed Funds, which are advised by the Investment Manager, during the Fund&#146;s
most recently completed calendar year, all of the Trustees (other than Messrs. Dawson and Maney) served as trustees of the Allianz-Managed Funds, which are managed by Allianz Global Investors U.S. LLC. The Allianz-Managed Funds and the PIMCO-Managed
Funds are considered to be in the same &#147;Fund Complex.&#148; Ms.&nbsp;DeCotis and Messrs. Kertess, Gallagher, Jacobson, Ogden and Rappaport currently serve as trustee or director of 84 funds in the Fund Complex. Mr.&nbsp;Maney and
Mr.&nbsp;Dawson currently serve as trustee or director of 26 funds in the Fund Complex. For the calendar year ended December&nbsp;31, 2016, amounts received by the Trustees from PIMCO-Managed Funds were: for Mr.&nbsp;Kertess, $300,000; for
Mr.&nbsp;Jacobson, $275,000; for each of Messrs. Gallagher, Ogden, Rappaport and Ms.&nbsp;DeCotis, $225,000. These amounts are included in the Fund Complex totals in the table above. </P></TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:7.5pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="3%" VALIGN="top" ALIGN="left">**</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:7.5pt">Messrs. Dawson and Maney are interested Persons of the Fund and do not receive compensation from the Fund for
their services as Trustees. </P></TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Codes of Ethics </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund and PIMCO have each adopted a code of ethics under Rule 17j-1 of the 1940 Act. These codes permit personnel subject to the codes to
invest in securities, including securities that may be purchased or held by the Fund. The codes of ethics can be reviewed and copied at the SEC&#146;s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room
may be obtained by calling the SEC at <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">1-202-551-8090.</FONT></FONT> The codes are also available on the EDGAR Database on the SEC&#146;s Internet site at http://www.sec.gov, and
copies may be obtained, after paying a duplicating fee, by electronic request at the following email address: publicinfo@sec.gov, or by writing the SEC&#146;s Public Reference Section, Washington, DC, 20549-0102. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">100 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B><A NAME="sai450385_5"></A>INVESTMENT MANAGER </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Investment Manager </B></P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">PIMCO, a
Delaware limited liability company, serves as investment manager to the Fund pursuant to an investment management agreement (the &#147;Investment Management Agreement&#148;) between PIMCO and the Fund. PIMCO is located at 650 Newport Center Drive,
Newport Beach, California 92660. As of September&nbsp;30, 2017, PIMCO had assets under management of approximately $1.68 trillion. As of September&nbsp;30, 2017, PIMCO had third-party assets under management of approximately $1.28 trillion. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">PIMCO is a majority owned subsidiary of Allianz Asset Management of America L.P. (&#147;Allianz Asset Management&#148;) with minority
interests held by Allianz Asset Management of America LLC, by Allianz Asset Management U.S. Holding II LLC, a Delaware limited liability company and by certain current and former officers of PIMCO. Allianz Asset Management was organized as a limited
partnership under Delaware law in 1987. Through various holding company structures, Allianz Asset Management is majority owned by Allianz SE. Allianz SE is a European based, multinational insurance and financial services holding company and a
publicly traded German company. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The general partner of Allianz Asset Management has substantially delegated its management and control of
Allianz Asset Management to a Management Board. The Management Board of Allianz Asset Management is comprised of John C. Maney. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">As
of the date of this Statement of Additional Information, there are no significant institutional shareholders of Allianz SE. Absent an SEC exemption or other regulatory relief, the Fund generally is precluded from effecting principal transactions
with brokers that are deemed to be affiliated persons of the Fund or PIMCO, and the Fund&#146;s ability to purchase securities being underwritten by an affiliated broker or a syndicate including an affiliated broker is subject to restrictions.
Similarly, the Fund&#146;s ability to utilize the affiliated brokers for agency transactions is subject to the restrictions of Rule 17e-1 under the 1940 Act. PIMCO does not believe that the restrictions on transactions with the affiliated brokers
described above will materially adversely affect its ability to provide services to the Fund, the Fund&#146;s ability to take advantage of market opportunities, or the Fund&#146;s overall performance. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Investment Management Agreement </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Pursuant to an investment management agreement between the Investment Manager and the Fund (the &#147;Investment Management Agreement&#148;),
the Fund has agreed to pay the Investment Manager an annual fee, payable monthly, in an amount equal to 1.15% of the Fund&#146;s average daily &#147;total managed assets,&#148; for the services rendered, for the facilities it provides and for
certain expenses borne by the Investment Manager pursuant to the Investment Management Agreement. Total managed assets includes total assets of the Fund (including assets attributable to any reverse repurchase agreements, dollar rolls, borrowings
and preferred shares that may be outstanding) minus accrued liabilities (other than liabilities representing reverse repurchase agreements, dollar rolls and borrowings ). </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Pursuant to the Investment Management Agreement, PIMCO shall provide to the Fund investment guidance and policy direction in connection with
the management of the Fund, including oral and written research, analysis, advice and statistical and economic data and information. In addition, under the terms of the Investment Management Agreement, subject to the general supervision of </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">101 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">
the Board of Trustees, PIMCO shall provide or cause to be furnished all supervisory and administrative and other services reasonably necessary for the operation of the Fund under what is
essentially an all-in fee structure, including but not limited to the supervision and coordination of matters relating to the operation of the Fund, including any necessary coordination among the custodian, transfer agent, dividend disbursing agent,
and recordkeeping agent (including pricing and valuation of the Fund), accountants, attorneys, auction agents and other parties performing services or operational functions for the Fund; the provision of adequate personnel, office space,
communications facilities, and other facilities necessary for the effective supervision and administration of the Fund, as well as the services of a sufficient number of persons competent to perform such supervisory and administrative and clerical
functions as are necessary for compliance with federal securities laws and other applicable laws; the maintenance of the books and records of the Fund; the preparation of all federal, state, local and foreign tax returns and reports for the Fund;
the provision of administrative services to shareholders for the Fund including the maintenance of a shareholder information telephone number, the provision of certain statistical information and performance of the Fund, an internet website (if
requested), and maintenance of privacy protection systems and procedures; the preparation and filing of such registration statements and other documents with such authorities as may be required to register and maintain the listing of the shares of
the Fund; the taking of other such actions as may be required by applicable law (including establishment and maintenance of a compliance program for the Fund); and the preparation, filing and distribution of proxy materials, periodic reports to
shareholders and other regulatory filings. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">In addition, under the Investment Management Agreement, PIMCO will procure, at its own
expense, the following services, and will bear expenses associated with the following for the Fund, which expenses are currently borne directly by the Fund: a custodian or custodians for the Fund to provide for the safekeeping of the Fund&#146;s
assets; a recordkeeping agent to maintain the portfolio accounting records for the Fund; a transfer agent for the Fund; a dividend disbursing agent and/or registrar for the Fund; all audits by the Fund&#146;s independent public accountant (except
fees to auditors associated with satisfying rating agency requirements for preferred shares or other securities issued by the Fund and other related requirements in the Fund&#146;s organizational documents); valuation services; maintaining the
Fund&#146;s tax records; all costs and/or fees incident to meetings of the Fund&#146;s shareholders, the preparation, printing and mailing of the Fund&#146;s prospectuses, notices and proxy statements, press releases and reports to its Shareholders,
the filing of reports with regulatory bodies, the maintenance of the Fund&#146;s existence and qualification to do business, the expense of issuing, redeeming, registering and qualifying for sale, common shares with the federal and state securities
authorities, and the expense of qualifying and listing Shares with any securities exchange or other trading system; legal services (except for extraordinary legal expenses); costs of printing certificates representing Shares of the Fund; the
Fund&#146;s pro rata portion of its fidelity bond and other insurance premiums; and association membership dues. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund (and not
PIMCO) will be responsible for certain fees and expenses that are not covered by the unified fee under the Investment Management Agreement. These include fees and expenses, including travel expenses, and fees and expenses of legal counsel retained
for their benefit, of Trustees who are not officers, employees, partners, shareholders or members of PIMCO or its subsidiaries or affiliates; the salaries and other compensation or expenses, including travel expenses, of the Fund&#146;s executive
officers and employees, if any, who are not officers, directors, shareholders, members, partners or employees of PIMCO or its subsidiaries or affiliates; taxes and governmental fees, if any, levied against the Fund; brokerage fees and commissions,
and other portfolio transaction expenses incurred by or for the Fund (including, without limitation, fees and </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">102 </P>


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  <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">
expenses of outside legal counsel or third-party consultants retained in connection with reviewing, negotiating and structuring specialized loan and other investments made by the Fund, subject to
specific or general authorization by the Board); expenses of the Fund&#146;s securities lending (if any), including any securities lending agent fees, as governed by a separate securities lending agreement; costs, including interest expenses, of
borrowing money or engaging in other types of leverage financing, including, without limitation, through the use by the Fund of reverse repurchase agreements, tender option bonds, bank borrowings and credit facilities; costs, including dividend cost
and/or interest expenses and other costs (including, without limitation, offering and related legal costs, fees to brokers, fees to auction agents, fees to transfer agents, fees to ratings agencies and fees to auditors associated with satisfying
ratings agency requirements for preferred shares or other securities issued by the Fund and other related requirements in a Fund&#146;s organizational documents)associated with the Fund&#146;s issuance, offering, redemption and maintenance of
preferred shares, commercial paper or other senior securities for the purpose of incurring leverage; fees and expenses of any underlying funds or other pooled vehicles in which the Fund invests; dividend and interest expenses on short positions
taken by the Fund; organizational and offering expenses of the Fund, including with respect to share offerings following the Fund&#146;s initial offering, such as rights and shelf offerings (including expenses associated with offerings made pursuant
to the Prospectus), and expenses associated with tender offers and other share repurchases and redemptions; extraordinary expenses including extraordinary legal expenses as may arise, including expenses incurred in connection with litigation,
proceedings, other claims, and the legal obligations of the Fund to indemnify its Trustees, officers, employees, shareholders, distributors, and agents with respect thereto; and expenses of the Fund which are capitalized in accordance with generally
accepted accounting principles. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Because the fees received by the Investment Manager are based on the Fund&#146;s average daily
&#147;total managed assets&#148; (including any assets attributable to any reverse repurchase agreements, dollar rolls, borrowings and preferred shares that may be outstanding) minus accrued liabilities (other than liabilities representing reverse
repurchase agreements, dollar rolls and borrowings), the Investment Manager has a financial incentive for the Fund to use certain forms of leverage (e.g., reverse repurchase agreements, dollar rolls, borrowings and preferred shares), which may
create a conflict of interest between the Investment Manager, on the one hand, and the Common Shareholders, on the other hand. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">PIMCO
does not currently receive a management fee from any Subsidiary. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Pursuant to the Investment Management Agreement, the Fund paid the
Investment Manager a total of $26,758,876 for the fiscal year ended June&nbsp;30, 2017, $27,246,970 for the fiscal year ended June&nbsp;30, 2016, $7,082,029 for the fiscal period ended June&nbsp;30,
2015<SUP STYLE="font-size:85%; vertical-align:top">1</SUP> and $30,881,053 for the fiscal year ended March&nbsp;31, 2015. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Certain Terms of the
Investment Management Agreement </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Investment Management Agreement was approved by the Trustees of the Fund (including all of the
Trustees who are not &#147;interested persons&#148; of the Investment Manager). By its terms the Investment Management Agreement continues in force with respect to the Fund for an initial one year period, and continues in force from year to year
thereafter, but only so long as its continuance is approved at least annually by (i)&nbsp;vote, cast in person at a meeting called for that purpose, of a majority of those Trustees who are not &#147;interested persons&#148; of the Investment Manager
or the </P> <P STYLE="line-height:8.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000;width:10%">&nbsp;</P>  <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="justify"><SUP
STYLE="font-size:85%; vertical-align:top">1</SUP> On December&nbsp;16, 2014, the Board approved a change of the Fund&#146;s fiscal year end from March&nbsp;31 to June&nbsp;30. Information is provided for the &#147;stub&#148; period from
April&nbsp;1, 2015 through the Fund&#146;s new fiscal year end of June&nbsp;30, 2015. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">103 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Fund, and (ii)&nbsp;by the full Board of Trustees or the vote of a majority of the outstanding
shares of all classes of the Fund. The Investment Management Agreement automatically terminates on assignment. The Investment Management Agreement may be terminated on not less than 60 days&#146; notice by the Investment Manager to the Fund or by
the Fund to the Investment Manager. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Investment Management Agreement provides that the Investment Manager shall not be subject to any
liability in connection with the performance of its services thereunder in the absence of willful misfeasance, bad faith, gross negligence or reckless disregard of its obligations and duties. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Portfolio Managers </B></P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><B>Other
Accounts Managed.</B> Joshua Anderson, Daniel J. Ivascyn and Alfred T. Murata, the portfolio managers who are jointly and primarily responsible for the day-to-day management of the Fund, also manage other registered investment companies, other
pooled investment vehicles and other accounts, as indicated in the table below. The following table identifies, as of June&nbsp;30, 2017 (i)&nbsp;the number of other registered investment companies, pooled investment vehicles and other accounts
managed by the portfolio manager (exclusive of the Fund); and (ii)&nbsp;the total assets of such other companies, vehicles and accounts, and the number and total assets of such other companies, vehicles and accounts with respect to which the
advisory fee is based on performance. The information includes amounts managed by a team, committee, or other group that includes the portfolio managers. </P>  <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="bottom"><B>Portfolio Manager</B></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Total</B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Number&nbsp;of</B></P> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman"><B>Accounts</B></P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Total&nbsp;Assets</B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>of
All</B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Accounts</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman"><B>(in&nbsp;$&nbsp;Millions)</B></P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Number of</B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Accounts</B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Paying a</B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Performance</B></P> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman"><B>Fee</B></P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Total&nbsp;Assets&nbsp;of</B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Accounts&nbsp;Paying&nbsp;a</B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Performance&nbsp;Fee</B></P> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman"><B>(in&nbsp;$ Millions)</B></P></TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>


<TR BGCOLOR="#cceeff" STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B><I>Joshua Anderson</I></B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.50em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Registered Investment Companies</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">2</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">$2,952.27</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">0</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">$0.00</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.50em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Other Pooled Investment Vehicles</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">1</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">$89.34</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">0</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">$0.00</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.50em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Other Accounts</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">9</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">$1,792.87</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">1</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">$1,698.71</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B><I>Daniel J. Ivascyn</I></B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Registered Investment Companies</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">16</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">$105,438.92</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">0</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">$0.00</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Other Pooled Investment Vehicles</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">10</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">$47,605.72</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">1</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">$10.04</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Other Accounts</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">138</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">$9,828.37</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">1</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">$216.62</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B><I>Alfred T. Murata</I></B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.50em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Registered Investment Companies</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">18</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">$104,870.44</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">0</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">$0.00</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.50em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Other Pooled Investment Vehicles</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">8</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">$15,354.41</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">0</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">$0.00</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.50em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Other Accounts</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">11</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">$1,548.76</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">0</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">$0.00</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
</TABLE>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Conflicts of Interest </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">From time to time, potential and actual conflicts of interest may arise between a portfolio manager&#146;s management of the investments of
the Fund, on the one hand, and the management of other accounts, on the other. Potential and actual conflicts of interest may also arise as a result of PIMCO&#146;s other business activities and PIMCO&#146;s possession of material non-public
information </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">104 </P>


<p Style='page-break-before:always'>
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  <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">
about an issuer. Other accounts managed by a portfolio manager might have similar investment objectives or strategies as the Fund, track the same index as the Fund or otherwise hold, purchase, or
sell securities that are eligible to be held, purchased or sold by the Fund. The other accounts might also have different investment objectives or strategies than the Fund. Potential and actual conflicts of interest may also arise as a result of
PIMCO serving as investment adviser to accounts that invest in the Fund. In this case, such conflicts of interest could in theory give rise to incentives for PIMCO to, among other things, vote proxies of the Fund in a manner beneficial to the
investing account but detrimental to the Fund. Conversely, PIMCO&#146;s duties to the Fund, as well as regulatory or other limitations applicable to the Fund, may affect the courses of action available to PIMCO-advised accounts (including certain
funds) that invest in the Fund in a manner that is detrimental to such investing accounts. In addition, regulatory restrictions, actual or potential conflicts of interest or other considerations may cause PIMCO to restrict or prohibit participation
in certain investments. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Because PIMCO is affiliated with Allianz, a large multi-national financial institution, conflicts similar to
those described below may occur between the Fund and other accounts managed by PIMCO and PIMCO&#146;s affiliates or accounts managed by those affiliates. Those affiliates (or their clients), which generally operate autonomously from PIMCO, may take
actions that are adverse to the Fund or other accounts managed by PIMCO. In many cases, PIMCO will not be in a position to mitigate those actions or address those conflicts, which could adversely affect the performance of the Fund or other accounts
managed by PIMCO. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><U>Knowledge and Timing of Fund Trades.</U> A potential conflict of interest may arise as a result of the portfolio
manager&#146;s day-to-day management of the Fund. Because of their positions with the Fund, the portfolio managers know the size, timing and possible market impact of the Fund&#146;s trades. It is theoretically possible that the portfolio managers
could use this information to the advantage of other accounts they manage and to the possible detriment of the Fund. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><U>Investment
Opportunities.</U> A potential conflict of interest may arise as a result of the portfolio manager&#146;s management of a number of accounts with varying investment guidelines. Often, an investment opportunity may be suitable for both the Fund and
other accounts managed by the portfolio manager, but may not be available in sufficient quantities for both the Fund and the other accounts to participate fully. In addition, regulatory issues applicable to PIMCO or the Fund or other accounts may
result in the Fund not receiving securities that may otherwise be appropriate for it. Similarly, there may be limited opportunity to sell an investment held by the Fund and another account. PIMCO has adopted policies and procedures reasonably
designed to allocate investment opportunities on a fair and equitable basis over time. Under PIMCO&#146;s allocation procedures, investment opportunities are allocated among various investment strategies based on individual account investment
guidelines and PIMCO&#146;s investment outlook. PIMCO has also adopted additional procedures to complement the general trade allocation policy that are designed to address potential conflicts of interest due to the side-by-side management of the
Fund and certain pooled investment vehicles, including investment opportunity allocation issues. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Conflicts potentially limiting the
Fund&#146;s investment opportunities may also arise when the Fund and other PIMCO clients invest in different parts of an issuer&#146;s capital structure, such as when the Fund owns senior debt obligations of an issuer and other clients own junior
tranches of the same issuer. In such circumstances, decisions over whether to trigger an event of default, over the terms of any workout, or how to exit an investment may result in conflicts of interest. In order to minimize such conflicts, a
portfolio manager may avoid certain investment opportunities that </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">105 </P>


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  <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">
would potentially give rise to conflicts with other PIMCO clients or PIMCO may enact internal procedures designed to minimize such conflicts, which could have the effect of limiting the
Fund&#146;s investment opportunities. Additionally, if PIMCO acquires material non-public confidential information in connection with its business activities for other clients, a portfolio manager may be restricted from purchasing securities or
selling securities for the Fund. Moreover, the Fund or other accounts managed by PIMCO may invest in a transaction in which one or more other funds or accounts managed by PIMCO are expected to participate, or already have made or will seek to make,
an investment. Such funds or accounts may have conflicting interests and objectives in connection with such investments, including, for example and without limitation, with respect to views on the operations or activities of the issuer involved, the
targeted returns from the investment, and the timeframe for, and method of, exiting the investment. Additionally, a fund or other account managed by PIMCO may take an investment position or action that may be different from, or inconsistent with, an
investment position or action taken by another fund or other account managed by PIMCO having similar or differing investment objectives. These positions and actions may adversely impact the Fund. For example, the Fund may buy a security and another
fund or other account managed by PIMCO may establish a short position in that same security or in another security issued by the same issuer. The subsequent short sale may result in a decrease in the price of the security that the first fund holds.
When making investment decisions where a conflict of interest may arise, PIMCO will endeavor to act in a fair and equitable manner as between the Fund and other clients; however, in certain instances the resolution of the conflict may result in
PIMCO acting on behalf of another client in a manner that may not be in the best interest, or may be opposed to the best interest, of the Fund. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><U>Performance Fees.</U> A portfolio manager may advise certain accounts with respect to which the management fee is based entirely or
partially on performance. Performance fee arrangements may create a conflict of interest for the portfolio manager in that the portfolio manager may have an incentive to allocate the investment opportunities that he or she believes might be the most
profitable to such other accounts instead of allocating them to the Fund. PIMCO has adopted policies and procedures reasonably designed to allocate investment opportunities between the Fund and certain pooled investment vehicles on a fair and
equitable basis over time. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Portfolio Manager Compensation </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">PIMCO&#146;s approach to compensation seeks to provide professionals with a Total Compensation Plan and process that is driven by PIMCO&#146;s
mission and values. Key Principles on Compensation Philosophy include: </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:12pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">PIMCO&#146;s pay practices are designed to attract and retain high performers; </P></TD></TR></TABLE>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:12pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">PIMCO&#146;s pay philosophy embraces a corporate culture of rewarding strong performance, a strong work ethic,
and meritocracy; </P></TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:12pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">PIMCO&#146;s goal is to ensure key professionals are aligned to PIMCO&#146;s long-term success through equity
participation; and </P></TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:12pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">PIMCO&#146;s &#147;Discern and Differentiate&#148; discipline guides total compensation levels.
</P></TD></TR></TABLE>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Total Compensation Plan consists of three components. The compensation program for portfolio managers is
designed to align with clients&#146; interests, emphasizing each portfolio manager&#146;s ability to generate long-term investment success for PIMCO&#146;s clients. A portfolio manager&#146;s compensation is not based solely on the performance of
the Fund or any other account managed by that portfolio manager: </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">106 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><I>Base Salary </I>&#150; Base salary is determined based on core job responsibilities,
positions/levels and market factors. Base salary levels are reviewed annually, when there is a significant change in job responsibilities or position, or a significant change in market levels. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><I>Performance Bonus</I> &#150; Performance bonuses are designed to reward risk-adjusted performance and contributions to PIMCO&#146;s broader
investment process. The compensation process is not formulaic and the following non-exhaustive list of qualitative and quantitative criteria are considered when determining the total compensation for portfolio managers: </P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:12pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="6%">&nbsp;</TD>
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<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">Performance measured over a variety of longer- and shorter-term periods, including 5- year, 4-year, 3-year,
2-year and 1-year dollar-weighted and account-weighted, pre-tax total and risk-adjusted investment performance as judged against the applicable benchmarks (which may include internal investment performance-related benchmarks) for each account
managed by a portfolio manager (including the Fund) and relative to applicable industry peer groups; greatest emphasis is placed on 5-year and 3-year performance, followed by 1-year performance; </P></TD></TR></TABLE>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:12pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">Consistency of investment performance across portfolios of similar mandate and guidelines, rewarding low
dispersion and consistency of outperformance; </P></TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:12pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">Appropriate risk positioning and risk management mindset which includes consistency with PIMCO&#146;s
investment philosophy, the Investment Committee&#146;s positioning guidance, absence of defaults, and appropriate alignment with client objectives; </P></TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:12pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">Contributions to mentoring, coaching and/or supervising members of team; </P></TD></TR></TABLE>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:12pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">Collaboration, idea generation, and contribution of investment ideas in the context of PIMCO&#146;s investment
process, Investment Committee meetings, and day-to-day management of portfolios; </P></TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:12pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">With much lesser importance than the aforementioned factors: amount and nature of assets managed by the
portfolio manager, contributions to asset retention, and client satisfaction. </P></TD></TR></TABLE>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">PIMCO&#146;s partnership culture
further rewards strong long term risk adjusted returns with promotion decisions almost entirely tied to long term contributions to the investment process. 10-year performance can also be considered, though not explicitly as part of the compensation
process. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><I>Deferred Compensation </I>&#150; Long Term Incentive Plan (&#147;LTIP&#148;) and/or M Options are awarded to key
professionals. Employees who reach a total compensation threshold are delivered their annual compensation in a mix of cash and/or deferred compensation. PIMCO incorporates a progressive allocation of deferred compensation as a percentage of total
compensation, which is in line with market practices. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:12pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">The LTIP provides participants with deferred cash awards that appreciate or depreciate based on PIMCO&#146;s
operating earnings over a rolling three-year period. The plan provides a link between longer term company performance and participant pay, further motivating participants to make a long term commitment to PIMCO&#146;s success. </P></TD></TR></TABLE>

 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">107 </P>


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<TR style = "page-break-inside:avoid">
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">The M Unit program provides mid-to-senior level employees with the potential to acquire an equity stake in
PIMCO over their careers and to better align employee incentives with the Firm&#146;s long-term results. In the program, options are awarded and vest over a number of years and may convert into PIMCO equity which shares in the profit distributions
of the Firm. M Units are non-voting common equity of PIMCO and provide a mechanism for individuals to build a significant equity stake in PIMCO over time. </P></TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Eligibility to participate in LTIP and the M Unit program is contingent upon continued employment at PIMCO and all other applicable
eligibility requirements. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><B>Profit Sharing Plan</B>. Portfolio managers who are Managing Directors of PIMCO receive compensation
from a non-qualified profit sharing plan consisting of a portion of PIMCO&#146;s net profits. Portfolio managers who are Managing Directors receive an amount determined by the Compensation Committee, based upon an individual&#146;s overall
contribution to the firm. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Securities Ownership </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The following table discloses the dollar range of equity securities beneficially owned by the portfolio managers of the Fund. The information
is as of June&nbsp;30, 2017. </P>  <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:12pt" ALIGN="center">


<TR>
<TD WIDTH="41%"></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD WIDTH="57%"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:12pt">
<TD VALIGN="bottom"><B>Name of Portfolio Manager</B></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"><B>Dollar Range of Equity Securities in the Fund</B></TD></TR>


<TR BGCOLOR="#cceeff" STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:12pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:12pt; font-family:Times New Roman">Joshua Anderson</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$100,001-$500,000</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:12pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:12pt; font-family:Times New Roman">Daniel J. Ivascyn</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">Over $1,000,000</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:12pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:12pt; font-family:Times New Roman">Alfred T. Murata</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$100,001-$500,000</TD></TR>
</TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Proxy Voting Policies and Procedures </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">PIMCO has adopted written proxy voting policies and procedures (&#147;Proxy Policy&#148;) as required by Rule 206(4)-6 under the Advisers Act.
The Fund has adopted the Proxy Policy of PIMCO when voting proxies on behalf of the Fund. In addition to covering the voting of equity securities, the Proxy Policy also applies generally to voting and/or consent rights of fixed income securities,
including but not limited to, plans of reorganization, and waivers and consents under applicable indentures. The Proxy Policy does not apply, however, to consent rights that primarily entail decisions to buy or sell investments, such as tender or
exchange offers, conversions, put options, redemption and Dutch auctions. The Proxy Policy is designed and implemented in a manner reasonably expected to ensure that voting and consent rights (collectively, &#147;proxies&#148;) are exercised in the
best interests of accounts. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">108 </P>


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With respect to the voting of proxies relating to equity securities, PIMCO has selected an unaffiliated third party proxy research and voting service (&#147;Proxy Voting Service&#148;), to assist
it in researching and voting proxies. With respect to each proxy received, the Proxy Voting Service researches the financial implications of the proposals and provides a recommendation to PIMCO as to how to vote on each proposal based on the Proxy
Voting Service&#146;s research of the individual facts and circumstances and the Proxy Voting Service&#146;s application of its research findings to a set of guidelines that have been approved by PIMCO. Upon the recommendation of the applicable
portfolio managers, PIMCO may determine to override any recommendation made by the Proxy Voting Service. In the event that the Proxy Voting Service does not provide a recommendation with respect to a proposal, PIMCO may determine to vote on the
proposals directly. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">With respect to the voting of proxies relating to fixed income securities, PIMCO&#146;s fixed income credit research
group (the &#147;Credit Research Group&#148;) is responsible for researching and issuing recommendations for voting proxies. With respect to each proxy received, the Credit Research Group researches the financial implications of the proxy proposal
and makes voting recommendations specific for each account that holds the related fixed income security. PIMCO considers each proposal regarding a fixed income security on a case-by-case basis taking into consideration any relevant contractual
obligations as well as other relevant facts and circumstances at the time of the vote. Upon the recommendation of the applicable portfolio managers, PIMCO may determine to override any recommendation made by the Credit Research Group. In the event
that the Credit Research Group does not provide a recommendation with respect to a proposal, PIMCO may determine to vote the proposal directly. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">PIMCO may determine not to vote a proxy for an equity or fixed income security if: (1)&nbsp;the effect on the applicable account&#146;s
economic interests or the value of the portfolio holding is insignificant in relation to the account&#146;s portfolio; (2)&nbsp;the cost of voting the proxy outweighs the possible benefit to the applicable account, including, without limitation,
situations where a jurisdiction imposes share blocking restrictions which may affect the ability of the portfolio managers to effect trades in the related security; or (3)&nbsp;PIMCO otherwise has determined that it is consistent with its fiduciary
obligations not to vote the proxy. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">In the event that the Proxy Voting Service or the Credit Research Group, as applicable, does not
provide a recommendation or the portfolio managers of a client account propose to override a recommendation by the Proxy Voting Service, or the Credit Research Group, as applicable, PIMCO will review the proxy to determine whether there is a
material conflict between PIMCO and the applicable account or among PIMCO-advised accounts. If no material conflict exists, the proxy will be voted according to the portfolio managers&#146; recommendation. If a material conflict does exist, PIMCO
will seek to resolve the conflict in good faith and in the best interests of the applicable client account, as provided by the Proxy Policy. The Proxy Policy permits PIMCO to seek to resolve material conflicts of interest by pursuing any one of
several courses of action. With respect to material conflicts of interest between PIMCO and a client account, the Proxy Policy permits PIMCO to either: (i)&nbsp;convene a committee to assess and resolve the conflict (the &#147;Proxy Conflicts
Committee&#148;); or (ii)&nbsp;vote in accordance with protocols previously established by the Proxy Policy, the Proxy Conflicts Committee and/or other relevant procedures approved by PIMCO&#146;s Legal and Compliance department with respect to
specific types of conflicts. With respect to material conflicts of interest between one or more PIMCO-advised accounts, the Proxy Policy permits PIMCO to: (i)&nbsp;designate a PIMCO portfolio manager who is not subject to the conflict to determine
how to vote the proxy if the conflict exists between two accounts with at least one portfolio manager in common; or (ii)&nbsp;permit the respective portfolio managers to vote the proxies in accordance with each client account&#146;s best interests
if the conflict exists between client accounts managed by different portfolio managers. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">109 </P>


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  <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">PIMCO will supervise and periodically review its proxy voting activities and the
implementation of the Proxy Policy. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Information about how PIMCO voted the Fund&#146;s proxies for the most recent twelve month period
ended June&nbsp;30<SUP STYLE="font-size:85%; vertical-align:top">th</SUP> (Form N-PX) will be available no later than the following August&nbsp;31<SUP STYLE="font-size:85%; vertical-align:top">st</SUP>, without charge, upon request, by calling the
Fund at (844)&nbsp;33-PIMCO (844-337-4626), on the Fund&#146;s website at www.pimco.com and on the SEC&#146;s website at http://www.sec.gov. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B><A NAME="sai450385_6"></A>PORTFOLIO TRANSACTIONS </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Investment Decisions and Portfolio Transactions </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Investment decisions for the Fund and for the other investment advisory clients of PIMCO are made with a view to achieving their respective
investment objectives. Investment decisions are the product of many factors in addition to basic suitability for the particular client involved (including the Fund). Some securities considered for investments by the Fund also may be appropriate for
other clients served by PIMCO. Thus, a particular security may be bought or sold for certain clients even though it could have been bought or sold for other clients at the same time, including accounts in which PIMCO, its affiliates and its
employees may have a financial interest. If a purchase or sale of securities consistent with the investment policies of the Fund and one or more of these clients served by PIMCO is considered at or about the same time, transactions in such
securities will be allocated among the Fund and other clients pursuant to PIMCO&#146;s trade allocation policy, as applicable, that is designed to ensure that all accounts, including the Fund, are treated fairly, equitably, and in a non-preferential
manner, such that allocations are not based upon fee structure or portfolio manager preference. PIMCO may acquire on behalf of its clients (including the Fund) securities or other financial instruments providing exposure to different aspects of the
capital and debt structure of an issuer, including without limitation those that relate to senior and junior/subordinate obligations of such issuer. In certain circumstances, the interests of those clients exposed to one portion of the issuer&#146;s
capital and debt structure may diverge from those clients exposed to a different portion of the issuer&#146;s capital and debt structure. PIMCO may advise some clients or take actions for them in their best interests with respect to their exposures
to an issuer&#146;s capital and debt structure that may diverge from the interests of other clients with different exposures to the same issuer&#146;s capital and debt structure. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">PIMCO may aggregate orders for the Fund with simultaneous transactions entered into on behalf of its other clients when, in its reasonable
judgment, aggregation may result in an overall economic benefit to the Fund and the other clients in terms of pricing, brokerage commissions or other expenses. When feasible, PIMCO allocates trades prior to execution. When pre-execution allocation
is not feasible, PIMCO promptly allocates trades following established and objective procedures. Allocations generally are made at or about the time of execution and before the end of the trading day. As a result, one account may receive a price for
a particular transaction that is different from the price received by another account for a similar transaction on the same day. In general, trades are allocated among portfolio managers on a pro rata basis (to the extent a portfolio manager decides
to participate fully in the trade), for further allocation by each portfolio manager among that manager&#146;s eligible accounts. In allocating trades among accounts, portfolio managers generally consider a number of factors, including, but not
limited to, each account&#146;s deviation (in </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">110 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">
terms of risk exposure and/or performance characteristics) from a relevant model portfolio, each account&#146;s investment objectives, restrictions and guidelines, its risk exposure, its
available cash, and its existing holdings of similar securities. Once trades are allocated, they may be reallocated only in unusual circumstances due to recognition of specific account restrictions. In some cases, PIMCO may sell a security on behalf
of a client, including the Fund, to a broker-dealer that thereafter may be purchased for the accounts of one or more other clients, including the Fund, from that or another broker-dealer. PIMCO have adopted procedures they believe are reasonably
designed to obtain the best execution for the transactions by each account. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Brokerage and Research Services </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">There is generally no stated commission in the case of fixed-income securities, which are often traded in the over-the-counter markets, but
the price paid by the Fund usually includes an undisclosed dealer commission or mark-up. In underwritten offerings, the price paid by the Fund includes a disclosed, fixed commission or discount retained by the underwriter or dealer. Transactions on
U.S. stock exchanges and other agency transactions involve the payment by the Fund of negotiated brokerage commissions. Such commissions vary among different brokers. Also, a particular broker may charge different commissions according to such
factors as the difficulty and size of the transaction. Transactions in foreign securities generally involve the payment of fixed brokerage commissions, which are generally higher than those in the United States. Transactions in fixed income
securities on certain foreign exchanges may involve commission payments. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">PIMCO places all orders for the purchase and sale of portfolio
securities, options, futures contracts, swap agreements and other instruments for the Fund and buys and sells such securities, options, futures, swap agreements and other instruments for the Fund through a substantial number of brokers and dealers.
In so doing, PIMCO uses its best efforts to obtain for the Fund the best execution available, except to the extent it may be permitted to pay higher brokerage commissions as described below. In seeking best execution, PIMCO, having in mind the
Fund&#146;s best interests, considers all factors it deems relevant, including, by way of illustration, price, the size of the transaction, the nature of the market for the security, the amount of the commission, the timing of the transaction taking
into account market prices and trends, the reputation, experience and financial stability of the broker-dealer involved and the quality of service rendered by the broker-dealer in other transactions. Changes in the aggregate amount of brokerage
commissions paid by the Fund from year-to-year may be attributable to changes in the asset size of the Fund, the volume of the portfolio transactions effected by the Fund, the types of instruments in which the Fund invests, or the rates negotiated
by PIMCO on behalf of the Fund. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund paid $983 in brokerage commissions during the fiscal year ended June&nbsp;30, 2017. The Fund
did not pay any brokerage commissions during the fiscal year ended June&nbsp;30, 2016, the fiscal period ended June&nbsp;30, 2015<SUP STYLE="font-size:85%; vertical-align:top">2</SUP> and the fiscal year ended March&nbsp;31, 2015. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">PIMCO places orders for the purchase and sale of portfolio investments for the Fund&#146;s account with brokers or dealers selected by it in
its discretion. In effecting purchases and sales of portfolio securities for the account of the Fund, PIMCO will seek the best price and execution of the Fund&#146;s orders. In doing so, the Fund may pay higher commission rates than the lowest
available when PIMCO believes it is reasonable to do so in light of the value of the brokerage and research services provided by the broker effecting the transaction, as discussed below. </P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P> <P STYLE="line-height:8.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000;width:26%">&nbsp;</P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="justify"><SUP STYLE="font-size:85%; vertical-align:top">2</SUP> On December&nbsp;16, 2014, the Board approved a change of the Fund&#146;s fiscal year end
from March&nbsp;31 to June&nbsp;30. Information is provided for the &#147;stub&#148; period from April&nbsp;1, 2015 through the Fund&#146;s new fiscal year end of June&nbsp;30, 2015. </P>
<P STYLE="font-size:12pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">111 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">It has for many years been a common practice in the investment advisory business for advisers of
investment companies and other institutional investors to receive research and brokerage products and services (together, &#147;services&#148;) from broker-dealers that execute portfolio transactions for the clients of such advisers. Consistent with
this practice, PIMCO may receive research services from many broker-dealers with which PIMCO places the Fund&#146;s portfolio transactions. PIMCO also may receive research or research related credits from brokers that are generated from underwriting
commissions when purchasing new issues of fixed-income securities or other assets for the Fund. These services, which in some cases may also be purchased for cash, include such matters as general economic and security market reviews, industry and
company reviews, evaluations of securities and recommendations as to the purchase and sale of securities and services related to the execution of securities transactions. Some of these services are of value to PIMCO in advising various of its
clients (including the Fund), although not all of these services are necessarily useful and of value in managing the Fund. Conversely, research and brokerage services provided to the Fund by broker-dealers in connection with trades executed on
behalf of other clients of PIMCO may be useful to PIMCO in managing the Fund, although not all of these services may be necessarily useful and of value to PIMCO in managing such other clients. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">In reliance on the &#147;safe harbor&#148; provided by Section&nbsp;28(e) of the Exchange Act, as amended, PIMCO may cause the Fund to pay
broker-dealers which provide them with &#147;brokerage and research services&#148; (as defined in the Exchange Act) an amount of commission for effecting a securities transaction for the Fund in excess of the commission which another broker-dealer
would have charged for effecting that transaction if PIMCO determines in good faith that the commission is reasonable in relation to the value of the brokerage and research services provided by the broker-dealer viewed in terms of either a
particular transaction or PIMCO&#146;s overall responsibilities to the advisory accounts for which PIMCO exercises investment discretion. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">PIMCO may place orders for the purchase and sale of exchanged-listed portfolio securities with a broker-dealer that is an affiliate of PIMCO
where, in the judgment of PIMCO, such firm will be able to obtain a price and execution at least as favorable as other qualified broker-dealers. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Pursuant to rules of the SEC, a broker-dealer that is an affiliate of PIMCO may receive and retain compensation for effecting portfolio
transactions for the Fund on a national securities exchange of which the broker-dealer is a member if the transaction is &#147;executed&#148; on the floor of the exchange by another broker which is not an &#147;associated person&#148; of the
affiliated broker-dealer, and if there is in effect a written contract between PIMCO and the Fund expressly permitting the affiliated broker-dealer to receive and retain such compensation. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">SEC rules further require that commissions paid to such an affiliated broker dealer, or PIMCO by the Fund on exchange transactions not exceed
&#147;usual and customary brokerage commissions.&#148; The rules define &#147;usual and customary&#148; commissions to include amounts which are &#147;reasonable and fair compared to the commission, fee or other remuneration received or to be
received by other brokers in connection with comparable transactions involving similar securities being purchased or sold on a securities exchange during a comparable period of time.&#148; </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">112 </P>


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  <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman">The Fund did not pay any commissions to affiliated brokers during the fiscal years ended June 30, 2017 and
June&nbsp;30, 2016, the fiscal period ended June&nbsp;30, 2015<SUP STYLE="font-size:85%; vertical-align:top">3</SUP> and the fiscal year ended March&nbsp;31, 2015. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Holdings of Securities of the Fund&#146;s Regular Brokers and Dealers </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The following table lists the regular brokers or dealers of the Fund whose securities the Fund acquired during the fiscal year ended
June&nbsp;30, 2017, as well as the Fund&#146;s holdings in such brokers or dealers as of June&nbsp;30, 2017. </P>  <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:11pt" ALIGN="center">


<TR>
<TD WIDTH="58%"></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD WIDTH="40%"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="bottom" ALIGN="center" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000; BORDER-RIGHT:1px solid #000000; padding-left:8pt"><B>Broker or Dealer</B></TD>
<TD VALIGN="bottom" STYLE=" BORDER-TOP:1px solid #000000">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="BORDER-TOP:1px solid #000000; BORDER-RIGHT:1px solid #000000; padding-right:2pt">
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Value&nbsp;of&nbsp;Securities&nbsp;Held&nbsp;by&nbsp;the&nbsp;Fund&nbsp;as&nbsp;of&nbsp;June&nbsp;30,</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>2017</B></P></TD></TR>


<TR BGCOLOR="#cceeff" STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:11pt">
<TD VALIGN="top" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000; BORDER-RIGHT:1px solid #000000; padding-left:8pt">
<P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:11pt; font-family:Times New Roman">Credit Suisse</P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-TOP:1px solid #000000">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE="BORDER-TOP:1px solid #000000; BORDER-RIGHT:1px solid #000000; padding-right:2pt">$100,672,000</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:11pt">
<TD VALIGN="top" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000; BORDER-RIGHT:1px solid #000000; padding-left:8pt">
<P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:11pt; font-family:Times New Roman">J.P. Morgan Securities</P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-TOP:1px solid #000000">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE="BORDER-TOP:1px solid #000000; BORDER-RIGHT:1px solid #000000; padding-right:2pt">$72,953,000</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:11pt">
<TD VALIGN="top" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000; BORDER-RIGHT:1px solid #000000; padding-left:8pt">
<P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:11pt; font-family:Times New Roman">Barclays Bank PLC</P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-TOP:1px solid #000000">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE="BORDER-TOP:1px solid #000000; BORDER-RIGHT:1px solid #000000; padding-right:2pt">$29,588,000</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:11pt">
<TD VALIGN="top" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000; BORDER-RIGHT:1px solid #000000; padding-left:8pt">
<P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:11pt; font-family:Times New Roman">Merrill Lynch&nbsp;&amp; Co.</P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-TOP:1px solid #000000">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE="BORDER-TOP:1px solid #000000; BORDER-RIGHT:1px solid #000000; padding-right:2pt">$7,940,000</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:11pt">
<TD VALIGN="top" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000; BORDER-RIGHT:1px solid #000000; padding-left:8pt">
<P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:11pt; font-family:Times New Roman">Deutsche Bank</P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-TOP:1px solid #000000">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE="BORDER-TOP:1px solid #000000; BORDER-RIGHT:1px solid #000000; padding-right:2pt">$5,322,000</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:11pt">
<TD VALIGN="top" STYLE="BORDER:1px solid #000000; padding-left:8pt"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:11pt; font-family:Times New Roman">Nomura Securities Co., Ltd.</P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-TOP:1px solid #000000; BORDER-BOTTOM:1px solid #000000">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE="BORDER-TOP:1px solid #000000; BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000; padding-right:2pt">$3,212,000</TD></TR>
</TABLE>  <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B><A NAME="sai450385_7"></A>DISTRIBUTIONS </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman">See &#147;Distributions&#148; in the Prospectus for information relating to distributions to Fund shareholders. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Board of Trustees has declared a dividend of $0.2205 per Common Share payable on November 1, 2017. The Board of Trustees has also declared
a dividend of $0.2205 per Common Share payable on December&nbsp;1, 2017. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B><A NAME="sai450385_8"></A>DESCRIPTION OF SHARES </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><I>Common Shares </I></P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund&#146;s
Declaration authorizes the issuance of an unlimited number of Common Shares. The Common Shares currently outstanding have been issued with a par value of $0.00001 per share. All Common Shares of the Fund have equal rights as to the payment of
dividends and the distribution of assets upon liquidation of the Fund. The Common Shares currently outstanding have been fully paid and, subject to matters discussed in &#147;Anti-Takeover and Other Provisions in the Declaration of
Trust&#151;Shareholder Liability&#148; below, are non-assessable, and will have no pre-emptive or conversion rights or rights to cumulative voting. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Common Shares are listed on the New York Stock Exchange. The Fund intends to hold annual meetings of shareholders so long as the Common
Shares are listed on a national securities exchange and such meetings are required as a condition to such listing. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Shares of closed-end
investment companies may frequently trade at prices lower than net asset value. Shares of closed-end investment companies like the Fund that invest predominantly in </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<P STYLE="line-height:8.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000;width:26%">&nbsp;</P>  <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="justify"><SUP
STYLE="font-size:85%; vertical-align:top">3</SUP> On December&nbsp;16, 2014, the Board approved a change of the Fund&#146;s fiscal year end from March&nbsp;31 to June&nbsp;30. Information is provided for the &#147;stub&#148; period from
April&nbsp;1, 2015 through the Fund&#146;s new fiscal year end of June&nbsp;30, 2015. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">113 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">
corporate debt obligations have during some periods traded at prices higher than net asset value and during other periods traded at prices lower than net asset value. There can be no assurance
that Common Shares or shares of other similar funds will trade at a price higher than net asset value in the future. Net asset value generally increases when interest rates decline, and decreases when interest rates rise, and these changes are
likely to be greater in the case of a fund, such as the Fund, having a leveraged capital structure. Whether investors realize gains or losses upon the sale of Common Shares will not depend upon the Fund&#146;s net asset value but will depend
entirely upon whether the market price of the Common Shares at the time of sale is above or below the original purchase price for the shares. Since the market price of the Fund&#146;s Common Shares will be determined by factors beyond the control of
the Fund, the Fund cannot predict whether the Common Shares will trade at, below, or above net asset value or at, below or above the initial public offering price. Accordingly, the Common Shares are designed primarily for long-term investors, and
investors in the Common Shares should not view the Fund as a vehicle for trading purposes. See &#147;Repurchase of Common Shares; Conversion to Open-End Fund.&#148; </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B><A NAME="sai450385_9"></A>ANTI-TAKEOVER AND OTHER PROVISIONS IN THE DECLARATION OF TRUST </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><I>Shareholder Liability </I></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Under
Massachusetts law, shareholders could, under certain circumstances, be held personally liable for the obligations of the Fund. However, the Declaration contains an express disclaimer of shareholder liability for acts or obligations of the Fund and
requires that notice of such limited liability be given in each agreement, obligation or instrument entered into or executed by the Fund or the Trustees. The Declaration also provides for indemnification out of the Fund&#146;s assets and property
for all loss and expense of any shareholder held personally liable on account of being or having been a shareholder. Thus, the risk of a shareholder incurring financial loss on account of shareholder liability should be limited to circumstances in
which such disclaimer is inoperative or the Fund is unable to meet its obligations, and thus should be considered remote. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><I>Anti-Takeover Provisions
</I></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">As described below, the Declaration includes provisions that could limit the ability of other entities or persons to acquire control
of the Fund, convert the Fund to open-end status or to change the composition of its Board of Trustees, and could have the effect of depriving shareholders of opportunities to sell their shares at a premium over prevailing market prices by
discouraging a third party from seeking to obtain control of the Fund. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund&#146;s Trustees are divided into three classes (Class I,
Class II and Class III), having initial terms of one, two and three years, respectively. At each annual meeting of shareholders, the term of one class will expire and each Trustee elected to that class will hold office until the third annual meeting
thereafter. The classification of the Board of Trustees in this manner could delay for an additional year the replacement of a majority of the Board of Trustees. In addition, the Declaration provides that a Trustee may be removed only for cause and
only (i)&nbsp;by action of at least seventy-five percent (75%)&nbsp;of the outstanding shares of the classes or series of shares entitled to vote for the election of such Trustee, or (ii)&nbsp;by written instrument, signed by at least seventy-five
percent (75%)&nbsp;of the remaining Trustees, specifying the date when such removal shall become effective. Cause for these purposes shall require willful misconduct, dishonesty or fraud on the part of the Trustee in the conduct of his office or
such Trustee being convicted of a felony. Except as provided in the next paragraph, the affirmative vote or consent of at least seventy-five percent (75%)&nbsp;of the Board of Trustees and at least seventy-five percent (75%)&nbsp;of the holders of
shares of the Fund outstanding and entitled to vote thereon are required to authorize any of the following </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">114 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">
transactions (each a &#147;Material Transaction&#148;): (1)&nbsp;a merger, consolidation or share exchange of the Fund or any series or class of shares of the Fund with or into any other person
or company, or of any such person or company with or into the Fund or any such series or class of shares; (2)&nbsp;the issuance or transfer by the Fund or any series or class of shares (in one or a series of transactions in any twelve-month period)
of any securities of the Fund or such series or class to any other person or entity for cash, securities or other property (or combination thereof) having an aggregate fair market value of $1,000,000 or more, excluding sales of securities of the
Fund or such series or class in connection with a public offering, issuances of securities of the Fund or such series or class pursuant to a dividend reinvestment plan adopted by the Fund and issuances of securities of the Fund or such series or
class upon the exercise of any stock subscription rights distributed by the Fund; or (3)&nbsp;a sale, lease, exchange, mortgage, pledge, transfer or other disposition by the Fund or any series or class of shares (in one or a series of transactions
in any twelve-month period) to or with any person of any assets of the Fund or such series or class having an aggregate fair market value of $1,000,000 or more, except for transactions in securities effected by the Fund or such series or class in
the ordinary course of its business. The same affirmative votes are required with respect to any shareholder proposal as to specific investment decisions made or to be made with respect to the Fund&#146;s assets or the assets of any series or class
of shares of the Fund. Notwithstanding the approval requirements specified in the preceding paragraph, the Declaration requires no vote or consent of the Fund&#146;s shareholders to authorize a Material Transaction if the transaction is approved by
a vote of both a majority of the Board of Trustees and seventy-five percent (75%)&nbsp;of the Continuing Trustees (as defined below), so long as all other conditions and requirements, if any, provided for in the Fund&#146;s Bylaws and applicable law
(including any shareholder voting rights under the 1940 Act) have been satisfied. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">In addition, the Declaration provides that the Fund may
be terminated at any time by vote or consent of at least seventy-five percent (75%)&nbsp;of the Fund&#146;s shares entitled to vote or, alternatively, by vote or consent of both a majority of the Board of Trustees and seventy-five percent
(75%)&nbsp;of the Continuing Trustees (as defined below) upon written notice to shareholders of the Fund. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">In certain circumstances, the
Declaration also imposes shareholder voting requirements that are more demanding than those required under the 1940 Act in order to authorize a conversion of the Fund from a closed-end to an open-end investment company. See &#147;Repurchase of
Common Shares; Conversion to Open-End Fund&#148; below. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">As noted, the voting provisions described above could have the effect of
depriving Common Shareholders of an opportunity to sell their Common Shares at a premium over prevailing market prices by discouraging a third party from seeking to obtain control of the Fund in a tender offer or similar transaction. In the view of
the Fund&#146;s Board of Trustees, however, these provisions offer several possible advantages, including: (1)&nbsp;requiring persons seeking control of the Fund to negotiate with its management regarding the price to be paid for the amount of
Common Shares required to obtain control; (2)&nbsp;promoting continuity and stability; and (3)&nbsp;enhancing the Fund&#146;s ability to pursue long-term strategies that are consistent with its investment objectives and management policies. The
Board of Trustees has determined that the voting requirements described above, which are generally greater than the minimum requirements under the 1940 Act, are in the best interests of the Fund&#146;s Common Shareholders generally. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">A &#147;Continuing Trustee,&#148; as used in the discussion above, is any member of the Fund&#146;s Board of Trustees who either (i)&nbsp;has
been a member of the Board for a period of at least thirty-six months </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">115 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">
(or since the commencement of the Fund&#146;s operations, if less than thirty-six months) or (ii)&nbsp;was nominated to serve as a member of the Board of Trustees by a majority of the Continuing
Trustees then members of the Board. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The foregoing is intended only as a summary and is qualified in its entirety by reference to the full
text of the Declaration and the Fund&#146;s Bylaws, both of which have been filed as exhibits to the Fund&#146;s registration statement on file with the SEC. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><I>Liability of Trustees </I></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Declaration
provides that the obligations of the Fund are not binding upon the Trustees of the Fund individually, but only upon the assets and property of the Fund, and that the Trustees shall not be liable for errors of judgment or mistakes of fact or law.
Nothing in the Declaration, however, protects a Trustee against any liability to which he would otherwise be subject by reason of willful misfeasance, bad faith, gross negligence or reckless disregard of the duties involved in the conduct of his
office. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B><A NAME="sai450385_10"></A>REPURCHASE OF COMMON SHARES; CONVERSION TO OPEN-END FUND </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund is a closed-end investment company and as such its shareholders will not have the right to cause the Fund to redeem their shares.
Instead, the Fund&#146;s Common Shares will trade in the open market at a price that will be a function of several factors, including dividend levels and stability (which will in turn be affected by dividend and interest payments by the Fund&#146;s
portfolio holdings, regulations affecting the timing and character of Fund&#146;s distributions, Fund expenses and other factors), portfolio credit quality, liquidity, call protection, market supply and demand, and similar factors relating to the
Fund&#146;s portfolio holdings. Shares of a closed-end investment company may frequently trade at prices lower than net asset value. The Fund&#146;s Board will regularly monitor the relationship between the market price and net asset value of the
Common Shares. If the Common Shares were to trade at a substantial discount to net asset value for an extended period of time, the Board may consider the repurchase of its Common Shares on the open market or in private transactions, the making of a
tender offer for such shares or the conversion of the Fund to an open-end investment company. The Fund cannot assure you that the Board will decide to take or propose any of these actions, or that share repurchases or tender offers will actually
reduce any market discount. The Fund has no present intention to repurchase its Common Shares and would do so only in the circumstances described in this section. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Subject to its investment limitations, the Fund may borrow to finance the repurchase of shares or to make a tender offer. Interest on any
borrowings to finance share repurchase transactions or the accumulation of cash by the Fund in anticipation of share repurchases or tenders will reduce the Fund&#146;s net income. Any share repurchase, tender offer or borrowing that might be
approved by the Board of Trustees would have to comply with the Securities Exchange Act of 1934, as amended, and the 1940 Act and the rules and regulations thereunder. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund&#146;s Board of Trustees may also from time to time consider submitting to the holders of the shares of beneficial interest of the
Fund a proposal to convert the Fund to an open-end investment company. In determining whether to exercise its sole discretion to submit this issue to shareholders, the Board of Trustees would consider all factors then relevant, including the
relationship of the market price of the Common Shares to net asset value and the extent to which the Fund&#146;s capital structure is leveraged. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">116 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Declaration requires the affirmative vote or consent of holders of at least seventy-five
percent (75%)&nbsp;of each class of the Fund&#146;s shares entitled to vote on the matter to authorize a conversion of the Fund from a closed-end to an open-end investment company, unless the conversion is authorized by both a majority of the Board
of Trustees and seventy-five percent (75%)&nbsp;of the Continuing Trustees (as defined above under &#147;Anti-Takeover and Other Provisions in the Declaration of Trust&#151;Anti-Takeover Provisions&#148;). This seventy-five percent
(75%)&nbsp;shareholder approval requirement is higher than is required under the 1940 Act. In the event that a conversion is approved by the Trustees and the Continuing Trustees as described above, the minimum shareholder vote required under the
1940 Act would be necessary to authorize the conversion. Currently, the 1940 Act would require approval of the holders of a &#147;majority of the outstanding&#148; Common Shares and, if issued, preferred shares voting together as a single class, and
the holders of a &#147;majority of the outstanding&#148; preferred shares (if issued), voting as a separate class, in order to authorize a conversion. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">If the Fund were to convert to an open-end company, the Common Shares likely would no longer be listed on the NYSE. In contrast to a
closed-end investment company, shareholders of an open-end investment company may require the company to redeem their shares at any time (except in certain circumstances as authorized by or under the 1940 Act) at their net asset value, less any
redemption charge that is in effect at the time of redemption. In addition, if the Fund were to convert to an open-end company, it would likely have to significantly reduce any leverage it is then employing and would not be able to invest more than
15% of its net assets in illiquid securities, either or both of which may necessitate a substantial repositioning of the Fund&#146;s investment portfolio, which may in turn generate substantial transaction costs, which would be borne by Common
Shareholders, and may adversely affect Fund performance and Fund dividends. Shareholders of an open-end investment company may require the company to redeem their shares on any business day (except in certain circumstances as authorized by or under
the 1940 Act) at their net asset value, less such redemption charge, if any, as might be in effect at the time of redemption. In order to avoid maintaining large cash positions or liquidating favorable investments to meet redemptions, open-end
companies typically engage in a continuous offering of their shares. Open-end companies are thus subject to periodic asset in-flows and out-flows that can complicate portfolio management. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The repurchase by the Fund of its shares at prices below net asset value will result in an increase in the net asset value of those shares
that remain outstanding. However, there can be no assurance that share repurchases or tenders at or below net asset value will result in the Fund&#146;s shares trading at a price equal to their net asset value. Nevertheless, the fact that the
Fund&#146;s shares may be the subject of repurchase or tender offers at net asset value from time to time, or that the Fund may be converted to an open-end company, may reduce any spread between market price and net asset value that might otherwise
exist. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">In addition, a purchase by the Fund of its Common Shares will decrease the Fund&#146;s total assets. This would likely have
the effect of increasing the Fund&#146;s expense ratio. Any purchase by the Fund of its Common Shares at a time when preferred shares, reverse repurchase agreements, credit default swaps or other forms of leverage are outstanding will increase the
leverage applicable to the outstanding Common Shares then remaining. See the Prospectus under &#147;Principal Risks of the Fund&#151;Leverage Risk.&#148; </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Before deciding whether to take any action if the Fund&#146;s Common Shares trade below net asset value, the Board of Trustees would consider
all relevant factors, including the extent and duration </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">117 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">
of the discount, the liquidity of the Fund&#146;s portfolio, the impact of any action that might be taken on the Fund or its shareholders and market considerations. Based on these considerations,
even if the Fund&#146;s shares should trade at a discount, the Board of Trustees may determine that, in the interest of the Fund and its shareholders, no action should be taken. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B><A NAME="sai450385_11"></A>TAXATION </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The following discussion of U.S. federal income tax consequences of investment in Common Shares of the Fund is based on the Code, U.S.
Treasury regulations, and other applicable authority, as of the date of this Statement of Additional Information. These authorities are subject to change by legislative or administrative action, possibly with retroactive effect. The following
discussion is only a summary of some of the important U.S. federal income tax considerations generally applicable to investments in Common Shares of the Fund. This summary does not purport to be a complete description of the U.S. federal income tax
considerations applicable to an investment in Common Shares of the Fund. There may be other tax considerations applicable to particular shareholders. For example, except as otherwise specifically noted herein, we have not described certain tax
considerations that may be relevant to certain types of holders subject to special treatment under the U.S. federal income tax laws, including shareholders subject to the U.S. federal alternative minimum tax, insurance companies, tax-exempt
organizations, pension plans and trusts, regulated investment companies, dealers in securities, shareholders holding Common Shares through tax-advantaged accounts (such as 401(k) plans or individual retirement accounts), financial institutions,
shareholders holding Common Shares as part of a hedge, straddle, or conversion transaction, entities that are not organized under the laws of the United States or a political subdivision thereof, and persons who are neither citizens nor residents of
the United States. This summary assumes that investors hold Common Shares as capital assets (within the meaning of the Code). Shareholders should consult their own tax advisors regarding their particular situation and the possible application of
U.S. federal, state, local, non-U.S. or other tax laws, and any proposed tax law changes. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Taxation of the Fund </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund has elected and intends each year to qualify and be eligible to be treated as a regulated investment company under Subchapter M of
the Code. In order to qualify for the special tax treatment accorded regulated investment companies and their shareholders, the Fund must, among other things: (a)&nbsp;derive at least 90% of its gross income for each taxable year from
(i)&nbsp;dividends, interest, payments with respect to certain securities loans, and gains from the sale or other disposition of stock, securities or foreign currencies, or other income (including but not limited to gains from options, futures, or
forward contracts) derived with respect to its business of investing in such stock, securities, or currencies and (ii)&nbsp;net income derived from interests in &#147;qualified publicly traded partnerships&#148; (as defined below);
(b)&nbsp;diversify its holdings so that, at the end of each quarter of the Fund&#146;s taxable year, (i)&nbsp;at least 50% of the value of the Fund&#146;s total assets consists of cash and cash items, U.S. government securities, securities of other
regulated investment companies, and other securities limited in respect of any one issuer to a value not greater than 5% of the value of the Fund&#146;s total assets and not more than 10% of the outstanding voting securities of such issuer, and
(ii)&nbsp;not more than 25% of the value of the Fund&#146;s total assets is invested, including through corporations in which the Fund owns a 20% or more voting stock interest, (x)&nbsp;in the securities (other than those of the U.S. government or
other regulated investment companies) of any one issuer or of two or more issuers that the Fund controls and that are engaged </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">118 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">
in the same, similar, or related trades or businesses, or (y)&nbsp;in the securities of one or more qualified publicly traded partnerships (as defined below); and (c)&nbsp;distribute with respect
to each taxable year at least 90% of the sum of its investment company taxable income (as that term is defined in the Code without regard to the deduction for dividends paid&#151;generally, taxable ordinary income and the excess, if any, of net
short-term capital gains over net long-term capital losses) and any net tax-exempt interest income for such year. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">In general, for
purposes of the 90% gross income requirement described in paragraph (a)&nbsp;above, income derived from a partnership will be treated as qualifying income only to the extent such income is attributable to items of income of the partnership that
would be qualifying income if realized directly by the regulated investment company. However, 100% of the net income derived from an interest in a &#147;qualified publicly traded partnership&#148; (a partnership (x)&nbsp;the interests in which are
traded on an established securities market or are readily tradable on a secondary market or the substantial equivalent thereof and (y)&nbsp;that derives less than 90% of its income from the qualifying income described in paragraph (a)(i) above) will
be treated as qualifying income. In general, such entities will be treated as partnerships for U.S. federal income tax purposes because they meet the passive income requirement under Code section 7704(c)(2). In addition, although in general the
passive loss rules of the Code do not apply to regulated investment companies, such rules do apply to a regulated investment company with respect to items attributable to an interest in a qualified publicly traded partnership. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">For purposes of the diversification test in (b)&nbsp;above, the term &#147;outstanding voting securities of such issuer&#148; will include the
equity securities of a qualified publicly traded partnership. Also, for purposes of the diversification test in (b)&nbsp;above, the identification of the issuer (or, in some cases, issuers) of a particular Fund investment can depend on the terms and
conditions of that investment. In some cases, identification of the issuer (or issuers) is uncertain under current law, and an adverse determination or future guidance by the IRS with respect to issuer identification for a particular type of
investment may adversely affect the Fund&#146;s ability to meet the diversification test in (b)&nbsp;above. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund may invest in one or
more Subsidiaries that are treated as disregarded entities for U.S. federal income tax purposes. In the case of a Subsidiary that is so treated, for U.S. federal income tax purposes, (i) the Fund is treated as owning the Subsidiary&#146;s assets
directly; (ii) any income, gain, loss, deduction or other tax items arising in respect of the Subsidiary&#146;s assets will be treated as if they are realized or incurred, as applicable, directly by the Fund; and (iii) distributions, if any, the
Fund receives from the Subsidiary will have no effect on the Fund&#146;s U.S. federal income tax liability. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">If the Fund qualifies as a
regulated investment company that is accorded special tax treatment, the Fund will not be subject to U.S. federal income tax on income or gains distributed in a timely manner to Common Shareholders in the form of dividends (including Capital Gain
Dividends, as defined below). If the Fund were to fail to meet the income, diversification, or distribution tests described above, the Fund could in some cases cure such failure, including by paying a Fund-level tax, paying interest, making
additional distributions, or disposing of certain assets. If the Fund were ineligible to or otherwise did not cure such failure for any year, or were otherwise to fail to qualify as a regulated investment company accorded special tax treatment for
such year, the Fund would be subject to tax on its taxable income at corporate rates, and all distributions from earnings and profits, including any distributions of net tax-exempt income and net long-term capital gains, would be taxable to Common
Shareholders as ordinary income. Some portions of such distributions may be eligible for the dividends-received deduction in the case of corporate shareholders and may be eligible to be treated as &#147;qualified dividend income&#148; in the case of
shareholders taxed as individuals, provided, in both cases, that the shareholder meets certain holding period and other requirements in respect of the Fund&#146;s Common Shares (as described below). In addition, the Fund could be required to
recognize unrealized gains, pay substantial taxes and interest and make substantial distributions before re-qualifying as a regulated investment company that is accorded special tax treatment. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">119 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund intends to distribute to its shareholders, at least annually, all or substantially all
of its investment company taxable income (computed without regard to the dividends-paid deduction), its net tax-exempt income (if any) and its net capital gain (that is, the excess of net long-term capital gain over net short-term capital loss, in
each case determined with reference to any loss carryforwards). Any taxable income including any net capital gain retained by the Fund will be subject to tax at the Fund level at regular corporate rates. In the case of net capital gain, the Fund is
permitted to designate the retained amount as undistributed capital gain in a timely notice to its shareholders who would then, in turn, (i)&nbsp;be required to include in income for U.S. federal income tax purposes, as long-term capital gain, their
share of such undistributed amount, and (ii)&nbsp;be entitled to credit their proportionate shares of the tax paid by the Fund on such undistributed amount against their U.S. federal income tax liabilities, if any, and to claim refunds on a properly
filed U.S. tax return to the extent the credit exceeds such liabilities. If the Fund makes this designation, for U.S. federal income tax purposes, the tax basis of Common Shares owned by a shareholder of the Fund will be increased by an amount equal
to the difference between the amount of undistributed capital gains included in the shareholder&#146;s gross income under clause (i)&nbsp;of the preceding sentence and the tax deemed paid by the shareholder under clause (ii)&nbsp;of the preceding
sentence. The Fund is not required to, and there can be no assurance that the Fund will, make this designation if it retains all or a portion of its net capital gain in a taxable year. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">As described under &#147;Distributions&#148; in the Prospectus, if at any time when preferred shares are outstanding the Fund does not meet
applicable asset coverage requirements, it will be required to suspend distributions to Common Shareholders until the requisite asset coverage is restored. Any such suspension may cause the Fund to pay a U.S. federal income and excise tax on
undistributed income or gains and may, in certain circumstances, prevent the Fund from qualifying for treatment as a regulated investment company. The Fund may repurchase or otherwise retire preferred shares in an effort to comply with the
distribution requirement applicable to regulated investment companies. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Capital losses in excess of capital gains (&#147;net capital
losses&#148;) are not permitted to be deducted against the Fund&#146;s net investment income. Instead, potentially subject to certain limitations, the Fund may carry net capital losses from any taxable year forward to subsequent taxable years to
offset capital gains, if any, realized during such subsequent taxable years. Capital loss carryforwards are reduced to the extent they offset current-year net realized capital gains, whether the Fund retains or distributes such gains. The Fund may
carry net capital losses forward to one or more subsequent taxable years without expiration. The Fund must apply such carryforwards first against gains of the same character. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">In determining its net capital gain, including in connection with determining the amount available to support a Capital Gain Dividend (as
defined below), its taxable income and its earnings and profits, a regulated investment company generally may elect to treat part or all of any post-October capital loss (defined as any net capital loss attributable to the portion, if any, of the
taxable year after October&nbsp;31 or, if there is no such loss, the net long-term capital loss or net short-term capital loss attributable to such portion of the taxable year) or late-year ordinary loss (generally, the sum of its (i)&nbsp;net
ordinary loss from the sale, exchange or other taxable disposition of property, attributable to the portion, if any, of the taxable year after October&nbsp;31, and its (ii)&nbsp;other net ordinary loss attributable to the portion, if any, of the
taxable year after December&nbsp;31) as if incurred in the succeeding taxable year. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">120 </P>


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  <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">If the Fund were to fail to distribute in a calendar year at least an amount equal to the sum
of 98% of its ordinary income for such year and 98.2% of its capital gain net income recognized for the one-year period ending on October&nbsp;31 of such year (or November&nbsp;30 or December&nbsp;31 of that year if the Fund is permitted to elect
and so elects), plus any such amounts retained from the prior year, the Fund would be subject to a nondeductible 4% excise tax on the undistributed amounts. For purposes of the required excise tax distribution, a regulated investment company&#146;s
ordinary gains and losses from the sale, exchange, or other taxable disposition of property that would otherwise be taken into account after October&nbsp;31 (or November&nbsp;30 of that year if the regulated investment company makes the election
described above) generally are treated as arising on January&nbsp;1 of the following calendar year; in the case of a Fund with a December&nbsp;31 year end that makes the election described above, no such gains or losses will be so treated. Also, for
these purposes, the Fund will be treated as having distributed any amount on which it is subject to corporate income tax for the taxable year ending within the calendar year. The Fund intends generally to make distributions sufficient to avoid
imposition of the 4% excise tax, although there can be no assurance that it will be able to or will do so. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Fund Distributions </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund intends to make monthly distributions. Unless a shareholder elects otherwise, all distributions will be automatically reinvested in
additional Common Shares of the Fund pursuant to the Fund&#146;s Dividend Reinvestment Plan (see &#147;Dividend Reinvestment Plan&#148; in the Prospectus). A shareholder whose distributions are reinvested in Common Shares under the Dividend
Reinvestment Plan will be treated for U.S. federal income tax purposes as having received an amount in distribution equal to either (i)&nbsp;if newly issued Common Shares are issued under the Dividend Reinvestment Plan, generally the fair market
value of the newly issued Common Shares issued to the shareholder or (ii)&nbsp;if reinvestment is made through open-market purchases under the Dividend Reinvestment Plan, the amount of cash allocated to the shareholder for the purchase of Common
Shares on its behalf in the open market. For U.S. federal income tax purposes, all distributions are generally taxable in the manner described below, whether a shareholder takes them in cash or they are reinvested pursuant to the Dividend
Reinvestment Plan in additional shares of the Fund. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Fund distributions generally will be taxable to shareholders in the calendar year
in which the distributions are declared, rather than the calendar year in which the distributions are received. See the discussion below regarding distributions declared in October, November or December for further information. Distributions
received by tax-exempt shareholders generally will not be subject to U.S. federal income tax to the extent permitted under applicable tax law. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">For U.S. federal income tax purposes, distributions of investment income are generally taxable as ordinary income. Taxes on distributions of
capital gains are determined by how long the Fund owned (or is deemed to have owned) the investments that generated the gains, rather than how long a shareholder has owned his or her Common Shares. In general, the Fund will recognize long-term
capital gain or loss on investments it has owned (or is deemed to have owned) for more than one year, and short-term capital gain or loss on investments it has owned (or is deemed to have owned) for one year or less. Tax rules can alter the
Fund&#146;s holding period in investments and thereby affect the tax treatment of gain or loss in respect of such investments. Distributions of net capital gain that are properly reported by the Fund as capital gain dividends (&#147;Capital Gain
Dividends&#148;) will be taxable to shareholders as long-term capital gains includible in net capital gain and taxed to individuals at reduced rates relative to ordinary income. Distributions of net short-term capital gain (as reduced by any net
long-term capital loss for the taxable year) will be taxable to shareholders as ordinary income. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">121 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Distributions of investment income reported by the Fund as derived from &#147;qualified dividend
income&#148; will be taxed in the hands of individuals at the rates applicable to net capital gain, provided holding period and other requirements are met at both the shareholder and Fund levels. The Fund does not expect a significant portion of
distributions to be derived from qualified dividend income. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">In general, dividends of net investment income received by corporate
shareholders of the Fund will qualify for the 70% dividends-received deduction generally available to corporations only to the extent of the amount of eligible dividends received by the Fund from domestic corporations for the taxable year if certain
holding period and other requirements are met at both the shareholder and Fund levels. The Fund does not expect a significant portion of distributions to be eligible for the dividends-received deduction. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Any distribution of income that is attributable to (i)&nbsp;income received by the Fund in lieu of dividends with respect to securities on
loan pursuant to a securities lending transaction or (ii)&nbsp;dividend income received by the Fund on securities it temporarily purchased from a counterparty pursuant to a repurchase agreement that is treated for U.S. federal income tax purposes as
a loan by the Fund, will not constitute qualified dividend income to non-corporate shareholders and will not be eligible for the dividends-received deduction for corporate shareholders. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The IRS currently requires a regulated investment company that the IRS recognizes as having two or more &#147;classes&#148; of stock for U.S.
federal income tax purposes to allocate to each such class proportionate amounts of each type of its income (such as ordinary income and capital gains) based upon the percentage of total dividends distributed to each class for the tax year.
Accordingly, as applicable, the Fund intends each tax year to allocate Capital Gain Dividends between and among its Common Shares and each series of its preferred shares in proportion to the total dividends paid to each class with respect to such
tax year. Dividends qualifying for the dividends received deduction or as qualified dividend income will be allocated between and among Common Shares and each series of preferred shares separately from dividends that do not so qualify, in each case
in proportion to the total dividends paid to each share class for the Fund&#146;s tax year. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Code generally imposes a 3.8% Medicare
contribution tax on the net investment income of certain individuals, trusts and estates to the extent their income exceeds certain threshold amounts. For these purposes, &#147;net investment income&#148; generally includes, among other things,
(i)&nbsp;distributions paid by the Fund of net investment income and capital gains as described above, and (ii)&nbsp;any net gain from the sale, exchange or other taxable disposition of Fund shares. Common Shareholders are advised to consult their
tax advisors regarding the possible implications of this additional tax on their investment in the Fund. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">If, in and with respect to
any taxable year, the Fund makes a distribution in excess of its current and accumulated &#147;earnings and profits,&#148; the excess distribution will be treated as a return of capital to the extent of a shareholder&#146;s tax basis in his or her
Common Shares, and thereafter as capital gain. A return of capital is not taxable, but it reduces a shareholder&#146;s basis in his or her shares, thus reducing any loss or increasing any gain on a subsequent taxable disposition by the shareholder
of such shares. Where one or more such distributions occur in and with respect to any taxable year of the Fund, the available earnings and profits will be allocated first to the distributions made to the </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">122 </P>


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  <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">
holders of preferred shares, and only thereafter to distributions made to holders of Common Shares. As a result, the holders of preferred shares will receive a disproportionate share of the
distributions, if any, treated as dividends, and the holders of the Common Shares will receive a disproportionate share of the distributions, if any, treated as a return of capital. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">A distribution by the Fund will be treated as paid on December&nbsp;31 of any calendar year if it is declared by the Fund in October, November
or December with a record date in such a month and paid by the Fund during January of the following calendar year. Such distributions will be taxable to shareholders in the calendar year in which the distributions are declared, rather than the
calendar year in which the distributions are received. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">As required by federal law, detailed federal tax information with respect to each
calendar year will be furnished to shareholders early in the succeeding year. Dividends and distributions on Common Shares are generally subject to U.S. federal income tax as described herein to the extent they do not exceed the Fund&#146;s realized
income and gains, even though such dividends and distributions may economically represent a return of a particular shareholder&#146;s investment. Such distributions are likely to occur in respect of Common Shares purchased at a time when the
Fund&#146;s net asset value reflects unrealized gains or income or gains that are realized but not yet distributed. Such realized income and gains may be required to be distributed even when the Fund&#146;s net asset value also reflects unrealized
losses. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">If the Fund holds, directly or indirectly, one or more &#147;tax credit bonds,&#148; such as Build America Bonds issued before
January&nbsp;1, 2011 on one or more applicable dates during a taxable year, it is possible that the Fund will elect to permit its shareholders to claim a tax credit on their income tax returns equal to each shareholder&#146;s proportionate share of
tax credits from the applicable bonds that otherwise would be allowed to the Fund. In such a case, a shareholder will be deemed to receive a distribution of money with respect to its Fund shares equal to the shareholder&#146;s proportionate share of
the amount of such credits and be allowed a credit against the shareholder&#146;s U.S. federal income tax liability equal to the amount of such deemed distribution, subject to certain limitations imposed by the Code on the credits involved. Even if
the Fund is eligible to pass through tax credits to shareholders, the Fund may choose not to do so. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Sales, Exchanges or Repurchases of Shares </B></P>
 <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The sale, exchange or repurchase of Fund shares may give rise to a gain or loss. In general, any gain or loss realized upon a taxable
disposition of Fund shares treated as a sale or exchange for U.S. federal income tax purposes will be treated as long-term capital gain or loss if the shares have been held for more than 12 months. Otherwise, such gain or loss on the taxable
disposition of Fund shares will be treated as short-term capital gain or loss. However, any loss realized upon a taxable disposition of Fund shares held for six months or less (i)&nbsp;will be treated as long-term, rather than short-term, to the
extent of any long-term capital gain distributions received (or deemed received) by the shareholder with respect to the shares and (ii)&nbsp;generally will be disallowed to the extent of any exempt-interest dividends received by the shareholder with
respect to the shares. All or a portion of any loss realized upon a taxable disposition of Fund shares will be disallowed under the Code&#146;s &#147;wash sale&#148; rule if other substantially identical shares of the Fund are purchased within 30
days before or after the disposition. In such a case, the basis of the newly purchased shares will be adjusted to reflect the disallowed loss. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">123 </P>


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  <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">In the event that the Fund repurchases a shareholder&#146;s Common Shares (as described in
the Prospectus), such repurchase generally will be treated as a sale or exchange of the shares by a shareholder provided that either (i)&nbsp;the shareholder tenders, and the Fund repurchases, all of such shareholder&#146;s shares (and such
shareholder does not hold and is not deemed to hold any preferred shares), thereby reducing the shareholder&#146;s percentage ownership of the Fund, whether directly or by attribution under Section&nbsp;318 of the Code, to 0%, (ii)&nbsp;the
shareholder meets numerical safe harbors under the Code with respect to percentage voting interest and reduction in ownership of the Fund following completion of the tender offer, or (iii)&nbsp;the tender offer otherwise results in a
&#147;meaningful reduction&#148; of the shareholder&#146;s ownership percentage interest in the Fund, which determination depends on a particular shareholder&#146;s facts and circumstances. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">If a tendering shareholder&#146;s proportionate ownership of the Fund (determined after applying the ownership attribution rules under
Section&nbsp;318 of the Code) is not reduced to the extent required under the tests described above, such shareholder will be deemed to receive a distribution from the Fund under Section&nbsp;301 of the Code with respect to the shares held (or
deemed held under Section&nbsp;318 of the Code) by the shareholder after the tender offer (a &#147;Section 301 distribution&#148;). The amount of this distribution will equal the price paid by the Fund to such shareholder for the shares sold, and
will be taxable as a dividend, i.e., as ordinary income, to the extent of the Fund&#146;s current or accumulated earnings and profits allocable to such distribution, with the excess treated as a return of capital reducing the shareholder&#146;s tax
basis in the shares held after the tender offer, and thereafter as capital gain. In the event a repurchase is treated as a Section&nbsp;301 distribution, any Fund shares held by a shareholder thereafter will be subject to basis adjustments in
accordance with the provisions of the Code. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Provided that no tendering shareholder is treated as receiving a Section&nbsp;301
distribution as a result of selling Common Shares pursuant to a particular tender offer, shareholders who do not sell shares pursuant to that tender offer will not realize constructive distributions on their shares as a result of other shareholders
selling shares in the tender offer. In the event that any tendering shareholder is deemed to receive a Section&nbsp;301 distribution, it is possible that shareholders whose proportionate ownership of the Fund increases as a result of that tender
offer, including shareholders who do not tender any shares, will be deemed to receive a constructive distribution under Section&nbsp;305(c) of the Code in an amount equal to the increase in their percentage ownership of the Fund as a result of the
tender offer. Such constructive distribution will be treated as a dividend to the extent of current or accumulated earnings and profits allocable to it. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Use of the Fund&#146;s cash to repurchase shares may adversely affect the Fund&#146;s ability to satisfy the distribution requirements for
treatment as a regulated investment company described above. The Fund may also recognize income in connection with the sale of portfolio securities to fund share purchases, in which case the Fund would take any such income into account in
determining whether such distribution requirements have been satisfied. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">If the Fund were to repurchase Common Shares on the open market,
such repurchase would similarly result in a percentage increase in the interests of remaining shareholders. In such a case, a selling shareholder would likely have no specific knowledge that he or she is selling his or her shares to the Fund. It is
therefore less likely that shareholders whose percentage share interests in the Fund increase as a result of any such open-market sale will be treated as having received a taxable distribution from the Fund. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">124 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The foregoing discussion does not address the tax treatment of tendering shareholders who do not
hold their shares as a capital asset. Such shareholders should consult their own tax advisors on the specific tax consequences to them of participating or not participating in the tender offer. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Issuer Deductibility of Interest </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">A
portion of the interest paid or accrued on certain high yield discount obligations owned by the Fund may not, and interest paid on debt obligations, if any, that are considered for tax purposes to be payable in the equity of the issuer or a related
party will not be deductible to the issuer. This may affect the cash flow of the issuer. If a portion of the interest paid or accrued on certain high yield discount obligations is not deductible, that portion will be treated as a dividend paid by
the issuer for purposes of the corporate dividends received deduction. In such cases, if the issuer of the high yield discount obligations is a domestic corporation, dividend payments by the Fund may be eligible for the dividends-received deduction
to the extent attributable to the deemed dividend portion of such accrued interest. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Original Issue Discount, Payment-in-Kind Securities, Market
Discount, Preferred Securities, and Commodity-Linked Notes </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Some debt obligations with a fixed maturity date of more than one year
from the date of issuance (and zero-coupon debt obligations with a fixed maturity date of more than one year from the date of issuance) will be treated as debt obligations that are issued originally at a discount. Generally, the amount of the
original issue discount (&#147;OID&#148;) is treated as interest income and is included in the Fund&#146;s income and required to be distributed over the term of the debt obligation, even though payment of that amount is not received until a later
time, upon partial or full repayment or disposition of the debt obligation. Increases in the principal amount of an inflation-indexed bond will generally be treated as OID. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Some debt obligations with a fixed maturity date of more than one year from the date of issuance that are acquired by the Fund in the
secondary market may be treated as having &#147;market discount.&#148; Very generally, market discount is the excess of the stated redemption price of a debt obligation (or in the case of an obligation issued with OID, its &#147;revised issue
price&#148;) over the purchase price of such obligation. Generally, any gain recognized on the disposition of, and any partial payment of principal on, a debt obligation having market discount is treated as ordinary income to the extent the gain, or
principal payment, does not exceed the &#147;accrued market discount&#148; on such debt obligation. Alternatively, the Fund may elect to accrue market discount currently, in which case the Fund will be required to include the accrued market discount
on such debt obligations in the Fund&#146;s income (as ordinary income) and thus distribute it over the term of the debt obligations, even though payment of that amount is not received until a later time, upon partial or full repayment or
disposition of the debt obligations. The Fund reserves the right to revoke such an election at any time pursuant to applicable IRS procedures. The rate at which the market discount accrues, and thus is included in the Fund&#146;s income, will depend
upon which of the permitted accrual methods the Fund elects. In the case of higher-risk securities, the amount of market discount may be unclear. See &#147;Higher-Risk Securities.&#148; </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">From time to time, a substantial portion of the Fund&#146;s investments in loans and other debt obligations could be treated as having OID
and/or market discount, which, in some cases could be significant. To generate sufficient cash to make the requisite distributions, the Fund may be required to sell securities in its portfolio (including when it is not advantageous to do so) that it
otherwise would have continued to hold. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">125 </P>


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  <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">A portion of the OID accrued on certain high yield discount obligations may not be deductible
to the issuer and will instead be treated as a dividend paid by the issuer for purposes of the dividends-received deduction. In such cases, if the issuer of the high yield discount obligations is a domestic corporation, dividend payments by the Fund
may be eligible for the dividends-received deduction to the extent attributable to the deemed dividend portion of such OID. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Some
debt obligations with a fixed maturity date of one year or less from the date of issuance may be treated as having OID or, in certain cases, &#147;acquisition discount&#148; (very generally, the excess of the stated redemption price over the
purchase price). The Fund will be required to include the OID or acquisition discount in income (as ordinary income) and thus distribute it over the term of the debt obligation, even though payment of that amount is not received until a later time,
upon partial or full repayment or disposition of the debt obligation. The rate at which OID or acquisition discount accrues, and thus is included in the Fund&#146;s income, will depend upon which of the permitted accrual methods the Fund elects.
</P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Some preferred securities may include provisions that permit the issuer, at its discretion, to defer the payment of distributions for a
stated period without any adverse consequences to the issuer. If the Fund owns a preferred security that is deferring the payment of its distributions, the Fund may be required to report income for U.S. federal income tax purposes to the extent of
any such deferred distributions even though the Fund has not yet actually received the cash distribution. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">In addition, pay-in-kind
obligations will, and commodity-linked notes may, give rise to income, which is required to be distributed and is taxable even though the Fund receives no interest payment in cash on the security during the year. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">If the Fund holds the foregoing kinds of obligations, or other obligations subject to special rules under the Code, the Fund may be required
to pay out as an income distribution each year an amount which is greater than the total amount of cash interest the Fund actually received. Such distributions may be made from the cash assets of the Fund or by liquidation of portfolio securities,
if necessary (including when it is not advantageous to do so). The Fund may realize gains or losses from such liquidations. In the event the Fund realizes net capital gains from such transactions, its shareholders may receive a larger capital gain
distribution than they might otherwise receive in the absence of such transactions. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Higher-Risk Securities </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund may invest in debt obligations that are in the lowest rating categories or are unrated, including debt obligations of issuers not
currently paying interest or who are in default. Investments in debt obligations that are at risk of or in default present special tax issues for the Fund. Tax rules are not entirely clear about issues such as whether or to what extent the Fund
should recognize market discount on a debt obligation, when the Fund may cease to accrue interest, OID or market discount, when and to what extent the Fund may take deductions for bad debts or worthless securities and how the Fund should allocate
payments received on obligations in default between principal and income. These and other related issues will be addressed by the Fund when, as and if it invests in such securities, in order to seek to ensure that it distributes sufficient income to
preserve its status as a regulated investment company and does not become subject to federal income or excise tax. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">126 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Securities Purchased at a Premium </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Very generally, where the Fund purchases a bond at a price that exceeds the redemption price at maturity &#150; i.e., at a premium &#150; the
premium is amortizable over the remaining term of the bond. In the case of a taxable bond, if the Fund makes an election applicable to all such bonds it purchases, which election is irrevocable without consent of the IRS, the Fund reduces the
current taxable income from the bond by the amortized premium and reduces its tax basis in the bond by the amount of such offset; upon the disposition or maturity of such bonds acquired on or after January&nbsp;4, 2013, the Fund is permitted to
deduct any remaining premium allocable to a prior period. In the case of a tax-exempt bond, tax rules require the Fund to reduce its tax basis by the amount of amortized premium. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Catastrophe Bonds </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The proper tax
treatment of income or loss realized by the retirement or sale of certain catastrophe bonds is unclear. The Fund will report such income or loss as capital or ordinary income or loss in a manner consistent with any IRS position on the subject
following the publication of such a position. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Passive Foreign Investment Companies </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Equity investments by the Fund in certain &#147;passive foreign investment companies&#148; (&#147;PFICs&#148;) could subject the Fund to a
U.S. federal income tax (including interest charges) on distributions received from the PFIC or on proceeds received from the disposition of shares in the PFIC. This tax cannot be eliminated by making distributions to Fund shareholders. However, the
Fund may elect to treat a PFIC as a &#147;qualified electing fund&#148; (i.e., make a &#147;QEF election&#148;), in which case the Fund will be required to include its share of the company&#146;s income and net capital gains annually, regardless of
whether it receives any distribution from the company. Under proposed Treasury regulations, any such income or net capital gain of the PFIC that is required to be included in the Fund&#146;s gross income would be qualifying income to the extent that
the PFIC timely distributes to the Fund an amount at least equal to such inclusion. If the PFIC were to fail to make such a distribution or distributions, the failure could adversely affect the Fund&#146;s ability to qualify as a regulated
investment company. The Fund also may make an election to mark the gains (and to a limited extent losses) in such holdings &#147;to the market&#148; as though it had sold and repurchased its holdings in those PFICs on the last day of the Fund&#146;s
taxable year. Such gains and losses are treated as ordinary income and loss. The QEF and mark-to-market elections may accelerate the recognition of income (without the receipt of cash) and increase the amount required to be distributed by the Fund
to avoid taxation. Making either of these elections therefore may require the Fund to sell other investments (including when it is not advantageous to do so) to meet its distribution requirement, which also may accelerate the recognition of gain and
affect the Fund&#146;s total return. Because it is not always possible to identify a foreign corporation as a PFIC, the Fund may incur the tax and interest charges described above in some instances. Dividends paid by PFICs will not be eligible to be
treated as &#147;qualified dividend income.&#148; </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">127 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Municipal Bonds </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The interest on municipal bonds is generally exempt from U.S. federal income tax. The Fund does not expect to invest 50% or more of its assets
in municipal bonds on which the interest is exempt from U.S. federal income tax, or in interests in other regulated investment companies. As a result, it does not expect to be eligible to pay &#147;exempt-interest dividends&#148; to its shareholders
under the applicable tax rules. As a result, interest on municipal bonds is taxable to shareholders of the Fund when received as a distribution from the Fund. In addition, gains realized by the Fund on the sale or exchange of municipal bonds are
taxable to shareholders of the Fund when distributed to them. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Certain Investments in REITs </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Any investment by the Fund in equity securities of REITs may result in the Fund&#146;s receipt of cash in excess of the REIT&#146;s earnings;
if the Fund distributes these amounts, these distributions could constitute a return of capital to Fund shareholders for U.S. federal income tax purposes. Investments in REIT equity securities also may require the Fund to accrue and to distribute
income not yet received. To generate sufficient cash to make the requisite distributions, the Fund may be required to sell securities in its portfolio (including when it is not advantageous to do so) that it otherwise would have continued to hold.
Dividends received by the Fund from a REIT generally will not constitute qualified dividend income. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Options, Futures, and Forward Contracts, Swap
Agreements, and other Derivatives </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">In general, option premiums received by the Fund are not immediately included in the income of the
Fund. Instead, the premiums are recognized when the option contract expires, the option is exercised by the holder, or the Fund transfers or otherwise terminates the option (e.g. through a closing transaction). If a call option written by the Fund
is exercised and the Fund sells or delivers the underlying stock, the Fund generally will recognize capital gain or loss equal to (a)&nbsp;the sum of the strike price and the option premium received by the Fund minus (b)&nbsp;the Fund&#146;s basis
in the stock. Such gain or loss generally will be short-term or long-term depending upon the holding period of the underlying stock. If securities are purchased by the Fund pursuant to the exercise of a put option written by it, the Fund will
generally subtract the premium received for purposes of computing its cost basis in the stock purchased. Gain or loss arising in respect of a termination of the Fund&#146;s obligation under an option other than through the exercise of the option
will be short-term capital gain or loss depending on whether the premium income received by the Fund is greater or less than the amount paid by the Fund (if any) in terminating the transaction. Thus, for example, if an option written by the Fund
expires unexercised, the Fund generally will recognize short-term capital gain equal to the premium received. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund&#146;s options
activities may include transactions constituting straddles for U.S. federal income tax purposes, that is, that trigger the U.S. federal income tax straddle rules contained primarily in Section&nbsp;1092 of the Code. Such straddles include, for
example, positions in a particular security, or an index of securities, and one or more options that offset the former position, including options that are &#147;covered&#148; by the Fund&#146;s long position in the subject security. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Very generally, where applicable, Section&nbsp;1092 requires (i)&nbsp;that losses be deferred on positions deemed to be offsetting positions
with respect to &#147;substantially similar or related property&#148; to the extent of unrealized gain in the latter, and (ii)&nbsp;that the holding period of such a straddle position that has not already been held for the long-term holding period
be terminated and begin anew once the position is no longer part of a straddle. Options on single stocks that are not &#147;deep in the money&#148; may constitute qualified covered calls, which generally are not subject to the straddle
</P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">128 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">
rules; the holding period on stock underlying qualified covered calls that are &#147;in the money&#148; although not &#147;deep in the money&#148; will be suspended during the period that such
calls are outstanding. Thus, the straddle rules and the rules governing qualified covered calls could cause gains that would otherwise constitute long-term capital gains to be treated as short-term capital gains, and distributions that would
otherwise constitute &#147;qualified dividend income&#148; or qualify for the dividends-received deduction to fail to satisfy the holding period requirements and therefore to be taxed as ordinary income or to fail to qualify for the 70% dividends
received deduction, as the case may be. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The tax treatment of certain positions entered into by the Fund, including regulated futures
contracts, certain foreign currency positions and certain listed non-equity options, will be governed by section 1256 of the Code (&#147;section 1256 contracts&#148;). Gains or losses on section 1256 contracts generally are considered 60% long-term
and 40% short-term capital gains or losses (&#147;60/40&#148;), although certain foreign currency gains and losses from such contracts may be treated as ordinary in character. Also, section 1256 contracts held by the Fund at the end of each taxable
year (and, for purposes of the 4% excise tax, on certain other dates as prescribed under the Code) are &#147;marked to market&#148; with the result that unrealized gains or losses are treated as though they were realized and the resulting gain or
loss is treated as ordinary or 60/40 gain or loss, as applicable. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Derivatives, Hedging, and Other Transactions </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">In addition to the special rules described above in respect of futures and options transactions, the Fund&#146;s transactions in other
derivatives instruments (e.g., forward contracts and swap agreements), as well as any of its hedging, short sale, securities loan or similar transactions may be subject to one or more special tax rules (e.g., notional principal contract, straddle,
constructive sale, straddle, wash sale and short sale rules). These rules may affect whether gains and losses recognized by the Fund are treated as ordinary or capital, accelerate the recognition of income or gains to the Fund, defer losses to the
Fund, and cause adjustments in the holding periods of the Fund&#146;s securities, thereby affecting, among other things, whether capital gains and losses are treated as short-term or long-term. These rules could, therefore, affect the amount, timing
and/or character of distributions to shareholders. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Because these and other tax rules applicable to these types of transactions are in
some cases uncertain under current law, an adverse determination or future guidance by the IRS with respect to these rules (which determination or guidance could be retroactive) may affect whether the Fund has made sufficient distributions, and
otherwise satisfied the relevant requirements, to maintain its qualification as a regulated investment company and avoid a Fund-level tax. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Commodities
and Commodity-Linked Instruments </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund&#146;s investments in commodities and commodity-linked instruments, if any, will
potentially be limited by the Fund&#146;s intention to qualify as a regulated investment company, and will potentially limit the Fund&#146;s ability to so qualify. Income and gains from commodities and certain commodity-linked instruments do not
constitute qualifying income to a regulated investment company for purposes of the 90% gross income test described above. In addition, the tax treatment of some other commodity-linked instruments in which the Fund might invest is not certain, in
particular with respect to whether income or gains from such instruments constitute qualifying income to a regulated investment company. If the Fund were to treat income or gain from a particular instrument as qualifying income and the income or
gain were later determined not to </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">129 </P>


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constitute qualifying income, and, together with any other nonqualifying income, caused the Fund&#146;s nonqualifying income to exceed 10% of its gross income in any taxable year, the Fund would
fail to qualify as a regulated investment company unless it is eligible to and does pay a tax at the Fund level. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Book-Tax Differences </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Certain of the Fund&#146;s investments in derivative instruments and foreign currency-denominated instruments, and any of the Fund&#146;s
transactions in foreign currencies and hedging activities, are likely to produce a difference between its book income and the sum of its taxable income and net tax-exempt income (if any). If such a difference arises, and the Fund&#146;s book income
is less than the sum of its taxable income and net tax-exempt income (if any), the Fund could be required to make distributions exceeding book income to qualify as a regulated investment company that is accorded special tax treatment and to avoid an
entity-level tax. In the alternative, if the Fund&#146;s book income exceeds the sum of its taxable income (including realized capital gains) and net tax-exempt income (if any), the distribution (if any) of such excess generally will be treated as
(i)&nbsp;a dividend to the extent of the Fund&#146;s remaining earnings and profits, (ii)&nbsp;thereafter, as a return of capital to the extent of the recipient&#146;s basis in its shares and (iii)&nbsp;thereafter, as gain from the sale or exchange
of a capital asset. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Short Sales </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">To the extent the Fund participates in short sales by contracting for the sale of securities it does not own and later purchasing securities
necessary to close the sale, the character of the gain or loss realized on such a short sale is determined by reference to the property used to close the short sale and is thus generally short-term. Short sales therefore may increase the amount of
short-term capital gain realized by the Fund, which is taxed as ordinary income when distributed to shareholders. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Mortgage-Related Securities </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund may invest directly or indirectly in real estate mortgage investment conduits (&#147;REMICs&#148;) (including by investing in
residual interests in CMOs with respect to which an election to be treated as a REMIC is in effect) or equity interests in taxable mortgage pools (&#147;TMPs&#148;). Under a notice issued by the IRS in October 2006 and Treasury Regulations that have
yet to be issued but may apply retroactively, a portion of the Fund&#146;s income (including income allocated to the Fund from a REIT or other pass-through entity) that is attributable to a residual interest in a REMIC or an equity interest in a TMP
&#151; referred to in the Code as an &#147;excess inclusion&#148;&#151; will be subject to U.S. federal income tax in all events. This notice also provides, and the regulations are expected to provide, that &#147;excess inclusion income&#148; of a
regulated investment company, such as the Fund, will be allocated to shareholders of the regulated investment company in proportion to the dividends received by such shareholders, with the same consequences as if the shareholders held the related
interest directly. As a result, the Fund may not be a suitable investment for charitable remainder trusts, as noted below. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">In general,
excess inclusion income allocated to shareholders (i)&nbsp;cannot be offset by net operating losses (subject to a limited exception for certain thrift institutions), (ii)&nbsp;will constitute unrelated business taxable income (&#147;UBTI&#148;) to
entities (including a qualified pension plan, an individual retirement account, a 401(k) plan, a Keogh plan or other tax-exempt entity) subject to tax on UBTI, </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">130 </P>


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thereby potentially requiring such an entity that is allocated excess inclusion income, and otherwise might not be required to file a U.S. federal income tax return, to file such a tax return and
pay tax on such income and (iii)&nbsp;in the case of a non-U.S. shareholder, will not qualify for any reduction in U.S. federal withholding tax. A shareholder will be subject to U.S. federal income tax on such inclusions notwithstanding any
exemption from such income tax otherwise available under the Code. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Non-U.S. Taxation </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Income, proceeds and gains received by the Fund from sources within foreign countries may be subject to withholding and other taxes imposed by
such countries, which will reduce the return on those investments. Tax treaties between certain countries and the United States may reduce or eliminate such taxes. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">If, at the close of its taxable year, more than 50% of the value of the Fund&#146;s total assets consists of securities of foreign
corporations, including for this purpose foreign governments, the Fund will be permitted to make an election under the Code that will allow shareholders a deduction or credit for foreign taxes paid by the Fund. In such a case, shareholders will
include in gross income from foreign sources their pro rata shares of such taxes. A shareholder&#146;s ability to claim an offsetting foreign tax credit or deduction in respect of such foreign taxes is subject to certain limitations imposed by the
Code, which may result in the shareholder&#146;s not receiving a full credit or deduction (if any) for the amount of such taxes. Shareholders who do not itemize on their U.S. federal income tax returns may claim a credit (but not a deduction) for
such foreign taxes. If the Fund does not qualify for or chooses not to make such an election, shareholders will not be entitled separately to claim a credit or deduction for U.S. federal income tax purposes with respect to foreign taxes paid by the
Fund; in that case the foreign tax will nonetheless reduce the Fund&#146;s taxable income. Even if the Fund elects to pass through to its shareholders foreign tax credits or deductions, tax-exempt shareholders and those who invest in the Fund
through tax-advantaged accounts such as IRAs will not benefit from any such tax credit or deduction. </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Tax-Exempt Shareholders </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Income of a regulated investment company that would be UBTI if earned directly by a tax-exempt entity will not generally be attributed as UBTI
to a tax-exempt shareholder of the regulated investment company. Notwithstanding this &#147;blocking&#148; effect, a tax-exempt shareholder could realize UBTI by virtue of its investment in the Fund if shares in the Fund constitute debt-financed
property in the hands of the tax-exempt shareholder within the meaning of Code Section&nbsp;514(b). A tax-exempt shareholder may also recognize UBTI if the Fund recognizes &#147;excess inclusion income&#148; derived from direct or indirect
investments in residual interests in REMICs or equity interests in TMPs as described above, if the amount of such income recognized by the Fund exceeds the Fund&#146;s investment company taxable income (after taking into account deductions for
dividends paid by the Fund). </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">In addition, special tax consequences apply to charitable remainder trusts (&#147;CRTs&#148;) that
invest in regulated investment companies that invest directly or indirectly in residual interests in REMICs or equity interests in TMPs. Under legislation enacted in December 2006, if a charitable remainder trust (&#147;CRT&#148;), as defined in
Section&nbsp;664 of the Code, realizes any UBTI for a taxable year, a 100% excise tax is imposed on such UBTI. Under IRS guidance issued in October 2006, a CRT will not recognize UBTI solely as a result of investing in a regulated investment company
that recognizes </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">131 </P>


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&#147;excess inclusion income.&#148; Rather, if at any time during any taxable year a CRT (or one of certain other tax-exempt shareholders, such as the United States, a state or political
subdivision, or an agency or instrumentality thereof, and certain energy cooperatives) is a record holder of a share in a regulated investment company that recognizes &#147;excess inclusion income,&#148; then the regulated investment company will be
subject to a tax on that portion of its &#147;excess inclusion income&#148; for the taxable year that is allocable to such shareholders at the highest federal corporate income tax rate. The extent to which this IRS guidance remains applicable in
light of the December 2006 legislation is unclear. To the extent permitted under the 1940 Act, the Fund may elect to specially allocate any such tax to the applicable CRT, or other shareholder, and thus reduce such shareholder&#146;s distributions
for the year by the amount of the tax that relates to such shareholder&#146;s interest in the Fund. CRTs and other tax-exempt shareholders are urged to consult their tax advisors concerning the consequences of investing in the Fund. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Non-U.S. Shareholders </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Distributions by
the Fund to shareholders that are not &#147;United States persons&#148; within the meaning of the Code (&#147;foreign shareholders&#148;) properly reported by the Fund as (1)&nbsp;Capital Gain Dividends, (2)&nbsp;short-term capital gain dividends,
or (3)&nbsp;interest-related dividends, each as defined and subject to certain conditions described below generally are not subject to withholding of U.S. federal income tax. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">In general, the Code defines (1)&nbsp;&#147;short-term capital gain dividends&#148; as distributions of net short-term capital gains in excess
of net long-term capital losses and (2)&nbsp;&#147;interest-related dividends&#148; as distributions from U.S. source interest income of types similar to those not subject to U.S. federal income tax if earned directly by an individual foreign
shareholder, in each case to the extent such distributions are properly reported as such by the Fund in a written notice to shareholders. The exceptions to withholding for Capital Gain Dividends and short-term capital gain dividends do not apply to
(A)&nbsp;distributions to an individual foreign shareholder who is present in the United States for a period or periods aggregating 183 days or more during the year of the distribution and (B)&nbsp;distributions attributable to gain that is
effectively connected with the conduct by the foreign shareholder of a trade or business within the United States under special rules regarding the disposition of U.S. real property interests as described below. If the Fund invests in a regulated
investment company that pays such distributions to the Fund, such distributions retain their character as not subject to withholding if properly reported when paid by the Fund to foreign shareholders. The exception to withholding for
interest-related dividends does not apply to distributions to a foreign shareholder (A)&nbsp;that has not provided a satisfactory statement that the beneficial owner is not a United States person, (B)&nbsp;to the extent that the dividend is
attributable to certain interest on an obligation if the foreign shareholder is the issuer or is a 10% shareholder of the issuer, (C)&nbsp;that is within certain foreign countries that have inadequate information exchange with the United States, or
(D)&nbsp;to the extent the dividend is attributable to interest paid by a person that is a related person of the foreign shareholder and the foreign shareholder is a controlled foreign corporation. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund is permitted to report such part of its dividends as interest-related or short-term capital gain dividends as are eligible, but is
not required to do so. In the case of shares held through an intermediary, the intermediary may withhold even if the Fund reports all or a portion of a payment as an interest-related or short-term capital gain dividend to shareholders. Foreign
shareholders should contact their intermediaries regarding the application of withholding rules to their accounts. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">132 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Distributions by the Fund to foreign shareholders other than Capital Gain Dividends, short-term
capital gain dividends, and interest-related dividends (e.g., dividends attributable to dividend and foreign-source interest income or to short-term capital gains or U.S. source interest income to which the exception from withholding described above
does not apply) are generally subject to withholding of U.S. federal income tax at a rate of 30% (or lower applicable treaty rate). </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">A
foreign shareholder is not, in general, subject to U.S. federal income tax on gains (and is not allowed a deduction for losses) realized on the sale of shares of the Fund unless (i)&nbsp;such gain is effectively connected with the conduct by the
foreign shareholder of a trade or business within the United States, (ii)&nbsp;in the case of a foreign shareholder that is an individual, the shareholder is present in the United States for a period or periods aggregating 183 days or more during
the year of the sale and certain other conditions are met, or (iii)&nbsp;the special rules relating to gain attributable to the sale or exchange of &#147;U.S. real property interests&#148; (&#147;USRPIs&#148;) apply to the foreign shareholder&#146;s
sale of shares of the Fund (as described below). </P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Foreign shareholders with respect to whom income from the Fund is effectively
connected with a trade or business conducted by the foreign shareholder within the United States will in general be subject to U.S. federal income tax on the income derived from the Fund at the graduated rates applicable to U.S. citizens, residents
or domestic corporations, whether such income is received in cash or reinvested in shares of the Fund and, in the case of a foreign corporation, may also be subject to a branch profits tax. If a foreign shareholder is eligible for the benefits of a
tax treaty, any effectively connected income or gain will generally be subject to U.S. federal income tax on a net basis only if it is also attributable to a permanent establishment maintained by the shareholder in the United States. More generally,
foreign shareholders who are residents in a country with an income tax treaty with the United States may obtain different tax results than those described herein, and are urged to consult their tax advisors. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Special rules would apply if the Fund were a qualified investment entity (&#147;QIE&#148;) because it is either a &#147;U.S. real property
holding corporation&#148; (&#147;USRPHC&#148;) or would be a USRPHC but for the operation of certain exceptions to the definition thereof. Very generally, a USRPHC is a domestic corporation that holds USRPIs the fair market value of which equals or
exceeds 50% of the sum of the fair market values of the corporation&#146;s USRPIs, interests in real property located outside the United States, and other trade or business assets. USRPIs are generally defined as any interest in U.S. real property
and any interest (other than solely as a creditor) in a USRPHC or, very generally, an entity that has been a USRPHC in the last five years. A regulated investment company that holds, directly or indirectly, significant interests in REITs may be a
USRPHC. Interests in domestically controlled QIEs, including REITs and regulated investment companies that are QIEs, not-greater-than-10% interests in publicly traded classes of stock in REITs and not-greater-than-5% interests in publicly traded
classes of stock in regulated investment companies generally are not USRPIs, but these exceptions do not apply for purposes of determining whether the Fund is a QIE. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">If an interest in the Fund were a USRPI, the Fund would be required to withhold U.S. tax on the proceeds of a share redemption by a
greater-than-5% foreign shareholder or any foreign shareholder if shares of the Fund are not considered regularly traded on an established securities market, in which case such foreign shareholder generally would also be required to file a U.S. tax
return and pay any additional taxes due in connection with the redemption. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">133 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">If the Fund were a QIE, under a special &#147;look-through&#148; rule, any distributions by the
Fund to a foreign shareholder (including, in certain cases, distributions made by the Fund in redemption of its shares) attributable directly or indirectly to (i)&nbsp;distributions received by the Fund from a lower-tier regulated investment company
or REIT that the Fund is required to treat as USRPI gain in its hands, or (ii)&nbsp;gains realized by the Fund on the disposition of USRPIs would retain their character as gains realized from USRPIs in the hands of the Fund&#146;s foreign
shareholders, and would be subject to U.S. withholding tax. In addition, such distributions could result in the foreign shareholder being required to file a U.S. tax return and pay tax on the distributions at regular U.S. federal income tax rates.
The consequences to a foreign shareholder, including the rate of such withholding and character of such distributions (e.g., as ordinary income or USRPI gain), would vary depending upon the extent of the foreign shareholder&#146;s current and past
ownership of the Fund. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund generally does not expect that it will be a QIE. Foreign shareholders should consult their tax advisers
and, if holding shares through intermediaries, their intermediaries, concerning the application of these rules to their investment in the Fund. Foreign shareholders also may be subject to &#147;wash sale&#148; rules to prevent the avoidance of the
tax-filing and -payment obligations discussed above through the sale and repurchase of Fund shares. In order for a foreign shareholder to qualify for any exemptions from withholding described above or for lower withholding tax rates under income tax
treaties, or to establish an exemption from backup withholding, a foreign shareholder must comply with special certification and filing requirements relating to its non-U.S. status (including, in general, furnishing an IRS Form W-8BEN, W- 8BEN-E or
substitute form). Foreign shareholders should consult their tax advisors in this regard. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Special rules (including withholding and
reporting requirements) apply to foreign partnerships and those holding Fund shares through foreign partnerships. Additional considerations may apply to foreign trusts and estates. Investors holding Fund shares through foreign entities should
consult their tax advisers about their particular situation. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">A foreign shareholder may be subject to state and local tax and to the U.S.
federal estate tax in addition to the U.S. federal income tax referred to above. A beneficial holder of shares who is a non-U.S. person may be subject to state and local tax and to the U.S. federal estate tax in addition to the U.S. federal tax on
income referred to above. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Backup Withholding </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund is generally required to withhold and remit to the U.S. Treasury a percentage of taxable distributions and redemption proceeds, if
any, paid to any individual shareholder who fails to properly furnish the Fund with a correct taxpayer identification number, who has under-reported dividend or interest income, or who fails to certify to the Fund that he or she is not subject to
such withholding. Backup withholding is not an additional tax. Any amounts withheld may be credited against the shareholder&#146;s U.S. federal income tax liability, provided the appropriate information is furnished to the IRS. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Tax Shelter Reporting Regulations </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Under
U.S. Treasury regulations, if a shareholder recognizes a loss of $2 million or more for an individual shareholder or $10 million or more for a corporate shareholder, the shareholder must file with the IRS a disclosure statement on IRS Form 8886.
Direct shareholders of portfolio securities </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">134 </P>


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are in many cases excepted from this reporting requirement, but under current guidance, shareholders of a regulated investment company are not excepted. Future guidance may extend the current
exception from this reporting requirement to shareholders of most or all regulated investment companies. The fact that a loss is reportable under these regulations does not affect the legal determination of whether the taxpayer&#146;s treatment of
the loss is proper. Shareholders should consult their tax advisors to determine the applicability of these regulations in light of their individual circumstances. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Other Reporting and Withholding Requirements </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Sections 1471-1474 of the Code and the U.S. Treasury and IRS guidance issued thereunder (collectively, &#147;FATCA&#148;) generally require
the Fund to obtain information sufficient to identify the status of each of its shareholders under FATCA or under an applicable intergovernmental agreement (an &#147;IGA&#148;) between the United&nbsp;States and a foreign government. If a
shareholder fails to provide the requested information or otherwise fails to comply with FATCA or an IGA, the Fund may be required to withhold under FATCA at a rate of 30% with respect to that shareholder on ordinary dividends, and, on or after
January&nbsp;1, 2019, 30% of the gross proceeds of sales or exchanges and certain Capital Gain Dividends it pays. If a payment by the Fund is subject to FATCA withholding, the Fund is required to withhold even if such payment would otherwise be
exempt from withholding under the rules applicable to foreign shareholders described above (e.g., Capital Gain Dividends, short-term capital gain dividends and interest-related dividends). </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Shareholders that are U.S. persons and own, directly or indirectly, more than 50% of the Fund could be required to report annually their
&#147;financial interest&#148; in the Fund&#146;s foreign financial accounts,&#148; if any, on FinCEN Form&nbsp;114, Report of Foreign Bank and Financial Accounts (FBAR). Shareholders should consult a tax advisor, and persons investing in the Fund
through an intermediary should contact their intermediary, regarding the applicability to them of this reporting requirement. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Each
prospective investor is urged to consult its tax adviser regarding the applicability of FATCA and any other reporting requirements with respect to the prospective investor&#146;s own situation, including investments through an intermediary. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>Shares Purchased Through Tax-Qualified Plans </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Special tax rules apply to investments through defined contribution plans and other tax-qualified plans. Shareholders should consult their tax
advisers to determine the suitability of shares of the Fund as an investment through such plans and the precise effect of an investment on their particular tax situation. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B><A NAME="sai450385_12"></A>PERFORMANCE RELATED AND COMPARATIVE INFORMATION </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund may quote certain performance-related information and may compare certain aspects of its portfolio and structure to other
substantially similar closed-end funds as categorized by Broadridge Financial Solutions, Inc. (&#147;Broadridge&#148;), Morningstar Inc. or other independent services. Comparison of the Fund to an alternative investment should be made with
consideration of differences in features and expected performance. The Fund may obtain data from sources or reporting services, such as Bloomberg Financial and Broadridge, that the Fund believes to be generally accurate. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">135 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund, in its advertisements, may refer to pending legislation from time to time and the
possible effect of such legislation on investors, investment strategy and related matters. At any time in the future, yields and total return may be higher or lower than past yields and there can be no assurance that any historical results will
continue. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Past performance is not indicative of future results. At the time Common Shareholders sell their shares, they may be worth more
or less than their original investment. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B><A NAME="sai450385_13"></A>CUSTODIAN, TRANSFER AGENT AND DIVIDEND DISBURSEMENT AGENT </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">State Street Bank and Trust Company, 801 Pennsylvania Avenue Kansas City, MO 64105, serves as custodian for assets of the Fund. The custodian
performs custodial and fund accounting services. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">American Stock Transfer&nbsp;&amp; Trust Company, LLC, 6201 15<SUP
STYLE="font-size:85%; vertical-align:top">th</SUP> Avenue, Brooklyn, New York 11219 serves as the Fund&#146;s transfer agent, registrar, dividend disbursement agent and shareholder servicing agent for the Common Shares, as well as agent for the
Dividend Reinvestment Plan relating to the Common Shares. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B><A NAME="sai450385_14"></A>INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
</B></P>  <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">PricewaterhouseCoopers LLP, 1100 Walnut Street, Suite 1300, Kansas City, MO 64106, serves as the independent registered public
accounting firm for the Fund. PricewaterhouseCoopers LLP provides audit services, tax assistance and consultation in connection with the review of SEC and IRS filings. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B><A NAME="sai450385_15"></A>COUNSEL </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Ropes&nbsp;&amp; Gray LLP, Prudential Tower, 800 Boylston Street, Boston, Massachusetts 02199, passes upon certain legal matters in connection
with shares offered by the Fund, and also acts as counsel to the Fund. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B><A NAME="sai450385_16"></A>REGISTRATION STATEMENT </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">A Registration Statement on Form N-2, including any amendments thereto (the &#147;Registration Statement&#148;), relating to the Common Shares
of the Fund offered hereby, has been filed by the Fund with the SEC, Washington, D.C. The Prospectus and this Statement of Additional Information are parts of, but do not contain all of the information set forth in, the Registration Statement,
including any exhibits and schedules thereto. For further information with respect to the Fund and the Common Shares offered or to be offered hereby, reference is made to the Fund&#146;s Registration Statement. Statements contained in the Prospectus
and this Statement of Additional Information as to the contents of any contract or other document referred to are not necessarily complete and in each instance reference is made to the copy of such contract or other document filed as an exhibit to
the Registration Statement, each such statement being qualified in all respects by such reference. Copies of the Registration Statement may be inspected without charge at the SEC&#146;s principal office in Washington, D.C., and copies of all or any
part thereof may be obtained from the SEC upon the payment of certain fees prescribed by the SEC. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">136 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B><A NAME="sai450385_17"></A>FINANCIAL STATEMENTS </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Fund&#146;s financial statements appearing in the Fund&#146;s annual shareholder report for the year ended June&nbsp;30, 2017 are
incorporated by reference in this Statement of Additional Information and have been so incorporated in reliance upon the reports of PwC, independent registered public accounting firm for the Fund, which report is included in such annual shareholder
report. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The annual shareholder reports are available upon request and without charge by writing to the Fund at c/o Pacific Investment
Management Company LLC, 1633 Broadway, New York, New York 10019. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">137 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="right"><B><U><A NAME="sai450385_18"></A>Appendix A</U> </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><B><U>Procedures for Shareholders to Submit Nominee Candidates for the PIMCO Sponsored Closed-End Funds</U> </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">A Fund shareholder must follow the following procedures in order to properly submit a nominee recommendation for the Committee&#146;s
consideration. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:12pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">1.</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">The shareholder/stockholder must submit any such recommendation (a &#147;Shareholder Recommendation&#148;) in
writing to a Fund, to the attention of the Secretary, at the address of the principal executive offices of the Fund. </P></TD></TR></TABLE> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:12pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">2.</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">The Shareholder Recommendation must be delivered to or mailed and received at the principal executive offices
of a Fund not less than forty-five (45)&nbsp;calendar days nor more than seventy-five (75)&nbsp;calendar days prior to the date of the Board or shareholder meeting at which the nominee would be elected. </P></TD></TR></TABLE>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:12pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">3.</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">The Shareholder Recommendation must include: (i)&nbsp;a statement in writing setting forth (A)&nbsp;the name,
age, date of birth, business address, residence address and nationality of the person recommended by the shareholder (the &#147;candidate&#148;); (B)&nbsp;the class and number of all shares of the Fund owned of record or beneficially by the
candidate, as reported to such shareholder by the candidate; (C)&nbsp;any other information regarding the candidate called for with respect to director nominees by paragraphs (a), (d), (e)&nbsp;and (f)&nbsp;of Item&nbsp;401 of Regulation S-K or
paragraph (b)&nbsp;of Item&nbsp;22 of Rule 14a-101 (Schedule 14A) under the Securities Exchange Act of 1934, as amended (the &#147;Exchange Act&#148;), adopted by the Securities and Exchange Commission (or the corresponding provisions of any
regulation or rule subsequently adopted by the Securities and Exchange Commission or any successor agency applicable to the Fund); (D)&nbsp;any other information regarding the candidate that would be required to be disclosed if the candidate were a
nominee in a proxy statement or other filing required to be made in connection with solicitation of proxies for election of Directors/Trustees or directors pursuant to Section&nbsp;14 of the Exchange Act and the rules and regulations promulgated
thereunder; and (E)&nbsp;whether the recommending shareholder believes that the candidate is or will be an &#147;interested person&#148; of the Fund (as defined in the Investment Company Act of 1940, as amended) and, if not an &#147;interested
person,&#148; information regarding the candidate that will be sufficient for the Fund to make such determination; (ii)&nbsp;the written and signed consent of the candidate to be named as a nominee and to serve as a Director/Trustee if elected;
(iii)&nbsp;the recommending shareholder&#146;s name as it appears on the Fund&#146;s books; (iv)&nbsp;the class and number of all shares of the Fund owned beneficially and of record by the recommending shareholder; and (v)&nbsp;a description of all
arrangements or understandings between the recommending shareholder and the candidate and any other person or persons (including their names) pursuant to which the recommendation is being made by the recommending shareholder. In addition, the
Committee may require the candidate to furnish such other information as it may reasonably require or deem necessary to determine the eligibility of such candidate to serve on the Board. </P></TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="right"><B>CEF001SAI_122117 </B></P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">A-1 </P>


<p Style='page-break-before:always'>
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<h5 align="left"><a href="#toc">Table of Contents</a></h5>

 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>PART C&#151;OTHER INFORMATION </B></P>
<P STYLE="font-size:24pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="12%" VALIGN="top" ALIGN="left"><B>Item&nbsp;25:</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Financial Statements and Exhibits </B></TD></TR></TABLE> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="7%" VALIGN="top" ALIGN="left">1.</TD>
<TD ALIGN="left" VALIGN="top">Financial Statements: </TD></TR></TABLE> <P STYLE="margin-top:2pt; margin-bottom:0pt; margin-left:7%; font-size:10pt; font-family:Times New Roman"><B>Included in Part A:</B> </P>
<P STYLE="margin-top:2pt; margin-bottom:0pt; margin-left:7%; font-size:10pt; font-family:Times New Roman">Financial highlights for fiscal years ended June&nbsp;30, 2017 and 2016; the fiscal period ended 2015; and the fiscal years ended
March&nbsp;31, 2015, 2014 and 2013. </P> <P STYLE="margin-top:2pt; margin-bottom:0pt; margin-left:7%; font-size:10pt; font-family:Times New Roman"><B>Incorporated into Part B by reference to Registrant&#146;s most recent Certified Shareholder Report
on Form <FONT STYLE="white-space:nowrap">N-CSR,</FONT> filed August&nbsp;28, 2017 (File No.&nbsp;811- 22673): </B></P> <P STYLE="margin-top:2pt; margin-bottom:0pt; margin-left:7%; font-size:10pt; font-family:Times New Roman">Consolidated Schedule of
Investments as of June&nbsp;30, 2017 </P> <P STYLE="margin-top:2pt; margin-bottom:0pt; margin-left:7%; font-size:10pt; font-family:Times New Roman">Consolidated Statement of Assets and Liabilities as of June&nbsp;30, 2017 </P>
<P STYLE="margin-top:2pt; margin-bottom:0pt; margin-left:7%; font-size:10pt; font-family:Times New Roman">Consolidated Statement of Operations for the year ended June&nbsp;30, 2017 </P>
<P STYLE="margin-top:2pt; margin-bottom:0pt; margin-left:7%; font-size:10pt; font-family:Times New Roman">Consolidated Statements of Changes in Net Assets for the years ended June&nbsp;30, 2017 and 2016 </P>
<P STYLE="margin-top:2pt; margin-bottom:0pt; margin-left:7%; font-size:10pt; font-family:Times New Roman">Consolidated Statement of Cash Flows as of June&nbsp;30, 2017 </P>
<P STYLE="margin-top:2pt; margin-bottom:0pt; margin-left:7%; font-size:10pt; font-family:Times New Roman">Notes to Financial Statements </P>
<P STYLE="margin-top:2pt; margin-bottom:0pt; margin-left:7%; font-size:10pt; font-family:Times New Roman">Report of Independent Registered Public Accounting Firm dated August&nbsp;25, 2017 </P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="7%" VALIGN="top" ALIGN="left">2.</TD>
<TD ALIGN="left" VALIGN="top">Exhibits: </TD></TR></TABLE> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="7%" VALIGN="top" ALIGN="left">a.1</TD>
<TD ALIGN="left" VALIGN="top">Amended and Restated Agreement and Declaration of Trust dated May&nbsp;7, 2012. <SUP STYLE="font-size:85%; vertical-align:top">(1)</SUP> </TD></TR></TABLE>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="7%" VALIGN="top" ALIGN="left">a.2</TD>
<TD ALIGN="left" VALIGN="top">Notice of Change of Trustee and Principal Address dated September&nbsp;5, 2014.<SUP STYLE="font-size:85%; vertical-align:top"> (3)</SUP> </TD></TR></TABLE>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="7%" VALIGN="top" ALIGN="left">b.</TD>
<TD ALIGN="left" VALIGN="top">Amended and Restated Bylaws of Registrant dated May&nbsp;7, 2012.<SUP STYLE="font-size:85%; vertical-align:top"> (1)</SUP> </TD></TR></TABLE> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="7%" VALIGN="top" ALIGN="left">c.</TD>
<TD ALIGN="left" VALIGN="top">None. </TD></TR></TABLE> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="7%" VALIGN="top" ALIGN="left">d.1</TD>
<TD ALIGN="left" VALIGN="top">Article III (Shares) and Article V (Shareholders&#146; Voting Powers and Meetings) of the Amended and Restated Agreement and Declaration of Trust.<SUP STYLE="font-size:85%; vertical-align:top">(1)</SUP>
</TD></TR></TABLE> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="7%" VALIGN="top" ALIGN="left">d.2</TD>
<TD ALIGN="left" VALIGN="top">Article 10 (Shareholders&#146; Voting Powers and Meetings) of the Amended and Restated Bylaws of Registrant.<SUP STYLE="font-size:85%; vertical-align:top">(1)</SUP> </TD></TR></TABLE>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="7%" VALIGN="top" ALIGN="left">d.3</TD>
<TD ALIGN="left" VALIGN="top">Form of Share Certificate of the Common Shares.<SUP STYLE="font-size:85%; vertical-align:top">(1)</SUP> </TD></TR></TABLE> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="7%" VALIGN="top" ALIGN="left">e.</TD>
<TD ALIGN="left" VALIGN="top">Terms and Conditions of Dividend Reinvestment Plan.<SUP STYLE="font-size:85%; vertical-align:top"> (3)</SUP> </TD></TR></TABLE> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="7%" VALIGN="top" ALIGN="left">f.</TD>
<TD ALIGN="left" VALIGN="top">None. </TD></TR></TABLE> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="7%" VALIGN="top" ALIGN="left">g.1</TD>
<TD ALIGN="left" VALIGN="top">Investment Management Agreement between Registrant and Pacific Investment Management Company LLC dated September&nbsp;5, 2014.<SUP STYLE="font-size:85%; vertical-align:top"> (3)</SUP> </TD></TR></TABLE>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="7%" VALIGN="top" ALIGN="left">h.</TD>
<TD ALIGN="left" VALIGN="top">Capital on Demand<SUP STYLE="font-size:85%; vertical-align:top">TM</SUP> Sales Agreement between Registrant and JonesTrading Institutional Services LLC <SUP STYLE="font-size:85%; vertical-align:top">(4)</SUP>
</TD></TR></TABLE> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="7%" VALIGN="top" ALIGN="left">i.</TD>
<TD ALIGN="left" VALIGN="top">None. </TD></TR></TABLE> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="7%" VALIGN="top" ALIGN="left">j.1</TD>
<TD ALIGN="left" VALIGN="top">Custodian Agreement between Registrant and State Street Bank&nbsp;&amp; Trust Co. dated April&nbsp;16, 2012.<SUP STYLE="font-size:85%; vertical-align:top">(3)</SUP> </TD></TR></TABLE>

<p Style='page-break-before:always'>
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<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="7%" VALIGN="top" ALIGN="left">j.2</TD>
<TD ALIGN="left" VALIGN="top">Amendment to Custodian Agreement between Registrant and State Street Bank&nbsp;&amp; Trust Co. dated September&nbsp;5, 2014&nbsp;.<SUP STYLE="font-size:85%; vertical-align:top"> (3)</SUP> </TD></TR></TABLE>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="7%" VALIGN="top" ALIGN="left">k.1</TD>
<TD ALIGN="left" VALIGN="top">Transfer Agency Services Agreement between Registrant and American Stock Transfer&nbsp;&amp; Trust Company, LLC dated April&nbsp;19, 2016.<SUP STYLE="font-size:85%; vertical-align:top"> (3)</SUP> </TD></TR></TABLE>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="7%" VALIGN="top" ALIGN="left">k.2</TD>
<TD ALIGN="left" VALIGN="top">Support Services Agreement between Registrant and PIMCO Investments LLC dated April&nbsp;4, 2012, as amended May&nbsp;23, 2012 and January&nbsp;4, 2013.<SUP STYLE="font-size:85%; vertical-align:top"> (3)</SUP>
</TD></TR></TABLE> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="7%" VALIGN="top" ALIGN="left">l.</TD>
<TD ALIGN="left" VALIGN="top">Opinion and consent of Ropes&nbsp;&amp; Gray LLP.<SUP STYLE="font-size:85%; vertical-align:top"> (3)</SUP> </TD></TR></TABLE> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="7%" VALIGN="top" ALIGN="left">m.</TD>
<TD ALIGN="left" VALIGN="top">None. </TD></TR></TABLE> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="7%" VALIGN="top" ALIGN="left">n.</TD>
<TD ALIGN="left" VALIGN="top">Consent of Registrant&#146;s independent registered public accounting firm. &#150; filed herewith. </TD></TR></TABLE> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="7%" VALIGN="top" ALIGN="left">o.</TD>
<TD ALIGN="left" VALIGN="top">None. </TD></TR></TABLE> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="7%" VALIGN="top" ALIGN="left">p.</TD>
<TD ALIGN="left" VALIGN="top">Subscription Agreement of Allianz Asset Management of America L.P.<SUP STYLE="font-size:85%; vertical-align:top">(1)</SUP> </TD></TR></TABLE> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="7%" VALIGN="top" ALIGN="left">q.</TD>
<TD ALIGN="left" VALIGN="top">None. </TD></TR></TABLE> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="7%" VALIGN="top" ALIGN="left">r.1</TD>
<TD ALIGN="left" VALIGN="top">Code of Ethics of Registrant &#150; filed herewith. </TD></TR></TABLE> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="7%" VALIGN="top" ALIGN="left">r.2</TD>
<TD ALIGN="left" VALIGN="top">Code of Ethics of Pacific Investment Management Company LLC &#150; filed herewith. </TD></TR></TABLE> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="7%" VALIGN="top" ALIGN="left">r.3</TD>
<TD ALIGN="left" VALIGN="top">Code of Ethics Pursuant to Section&nbsp;406 of the Sarbanes-Oxley Act of 2002 for Principal Executive and Senior Financial Officers.<SUP STYLE="font-size:85%; vertical-align:top"> (3)</SUP> </TD></TR></TABLE>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="7%" VALIGN="top" ALIGN="left">s.1</TD>
<TD ALIGN="left" VALIGN="top">Powers of Attorney for William Gallipeau, Peter Strelow, Deborah A. DeCotis, Bradford K. Gallagher, James A. Jacobson, Hans W. Kertess, John C. Maney, William B. Ogden, IV, Alan Rappaport, and Craig A. Dawson.<SUP
STYLE="font-size:85%; vertical-align:top">(2) </SUP> </TD></TR></TABLE> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR style = "page-break-inside:avoid">
<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="7%" VALIGN="top" ALIGN="left">s.2</TD>
<TD ALIGN="left" VALIGN="top">Power of Attorney for Trent W. Walker &#150; filed herewith. </TD></TR></TABLE> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<P STYLE="line-height:8.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000;width:21%">&nbsp;</P>
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<TD WIDTH="7%" VALIGN="top" ALIGN="left">(1)</TD>
<TD ALIGN="left" VALIGN="top">Incorporated by reference to <FONT STYLE="white-space:nowrap">Pre-Effective</FONT> Amendment No.&nbsp;3 the Registrant&#146;s Registration Statement on Form <FONT STYLE="white-space:nowrap">N-2,</FONT> Registration <FONT
STYLE="white-space:nowrap">Nos.&nbsp;333-179887</FONT> and 811- 22673 (filed on May&nbsp;11, 2012). </TD></TR></TABLE>
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<TR style = "page-break-inside:avoid">
<TD WIDTH="7%" VALIGN="top" ALIGN="left">(2)</TD>
<TD ALIGN="left" VALIGN="top">Incorporated by reference to Registrant&#146;s Registration Statement on Form <FONT STYLE="white-space:nowrap">N-2,</FONT> Registration Nos. <FONT STYLE="white-space:nowrap">333-215573</FONT> and 811- 22673 (filed on
January&nbsp;17, 2017). </TD></TR></TABLE>
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<TR style = "page-break-inside:avoid">
<TD WIDTH="7%" VALIGN="top" ALIGN="left">(3)</TD>
<TD ALIGN="left" VALIGN="top">Incorporated by reference to <FONT STYLE="white-space:nowrap">Pre-Effective</FONT> Amendment No.&nbsp;1 to the Registrant&#146;s Registration Statement on Form <FONT STYLE="white-space:nowrap">N-2,</FONT> Registration
Nos. <FONT STYLE="white-space:nowrap">333-215573</FONT> and 811- 22673 (filed on March&nbsp;23, 2017). </TD></TR></TABLE>
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<TR style = "page-break-inside:avoid">
<TD WIDTH="7%" VALIGN="top" ALIGN="left">(4)</TD>
<TD ALIGN="left" VALIGN="top">Incorporated by reference to Post-Effective Amendment No.&nbsp;1 to the Registrant&#146;s Registration Statement on Form <FONT STYLE="white-space:nowrap">N-2,</FONT> Registration Nos.
<FONT STYLE="white-space:nowrap">333-215573</FONT> and <FONT STYLE="white-space:nowrap">811-22673</FONT> (filed on March&nbsp;27, 2017). </TD></TR></TABLE> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR style = "page-break-inside:avoid">
<TD WIDTH="12%" VALIGN="top" ALIGN="left"><B>Item&nbsp;26:</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Marketing Arrangements </B></TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman">Reference is made to the form of sales agreement for the
Registrant&#146;s common shares filed as exhibit h to the registration statement previously filed on Form <FONT STYLE="white-space:nowrap">N-2</FONT> (No. <FONT STYLE="white-space:nowrap">333-215573)</FONT> and the section entitled &#147;Plan of
Distribution&#148; contained in Registrant&#146;s Prospectus, filed as Part&nbsp;A of Registrant&#146;s Registration Statement incorporated herein by reference. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR style = "page-break-inside:avoid">
<TD WIDTH="12%" VALIGN="top" ALIGN="left"><B>Item&nbsp;27:</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Other Expenses of Issuance and Distribution </B></TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman">Not applicable. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">-2- </P>


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<TD WIDTH="12%" VALIGN="top" ALIGN="left"><B>Item&nbsp;28:</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Persons Controlled by or under Common Control with Registrant </B></TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman">Registrant owns 100% of
the following consolidated&nbsp;subsidiaries: PCILS I LLC, a Delaware limimted company and PDILS I LLC, a Delaware limited liability company. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR style = "page-break-inside:avoid">
<TD WIDTH="12%" VALIGN="top" ALIGN="left"><B>Item&nbsp;29:</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Number of Holders of Securities </B></TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman">At November&nbsp;30, 2017: </P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>
<TD WIDTH="4%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="48%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="46%"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:7.5pt">
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:7.5pt; font-family:Times New Roman" ALIGN="center"><B>Title of Class</B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:7.5pt; font-family:Times New Roman" ALIGN="center"><B>Number&nbsp;of&nbsp;Record&nbsp;Holders</B></P></TD></TR>


<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Common Shares, par value $0.00001</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">114</TD></TR>
</TABLE> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR style = "page-break-inside:avoid">
<TD WIDTH="12%" VALIGN="top" ALIGN="left"><B>Item&nbsp;30:</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Indemnification </B></TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman">Reference is made to Article VIII, Sections 1 through 4, of the
Registrant&#146;s Amended and Restated Agreement and Declaration of Trust, which is incorporated by reference herein. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman">Insofar as
indemnification for liabilities arising under the Securities Act of 1933, as amended (the &#147;Securities Act&#148;), may be permitted to trustees, officers and controlling persons of the Registrant by the Registrant pursuant to the Trust&#146;s
Amended and Restated Agreement and Declaration of Trust, its Amended and Restated Bylaws or otherwise, the Registrant is aware that in the opinion of the Securities and Exchange Commission, such indemnification is against public policy as expressed
in the Securities Act and, therefore, is unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Registrant of expenses incurred or paid by trustees, officers or controlling persons of the
Registrant in the successful defense of any action, suit or proceeding) is asserted by such trustees, officers or controlling persons in connection with the securities being registered, the Registrant will, unless in the opinion of its counsel the
matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final
adjudication of such issue. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="12%" VALIGN="top" ALIGN="left"><B>Item&nbsp;31:</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Business and Other Connections of Investment Adviser </B></TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman">Pacific Investment Management
Company LLC (&#147;PIMCO&#148;) is an investment adviser registered under the Advisers Act. The list required by this Item 31 of officers and directors of PIMCO, together with any information as to any business, profession, vocation, or employment
of a substantial nature engaged in by such officers and directors during the past two years, is incorporated herein by reference from Form ADV filed by PIMCO pursuant to the Advisers Act (SEC File
<FONT STYLE="white-space:nowrap">No.&nbsp;801-48187).</FONT> </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR style = "page-break-inside:avoid">
<TD WIDTH="12%" VALIGN="top" ALIGN="left"><B>Item&nbsp;32:</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Location of Accounts and Records </B></TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman">The account books and other documents required to be
maintained by the Registrant pursuant to Section&nbsp;31(a) of the Investment Company Act of 1940 and the rules thereunder will be maintained at the offices of Pacific Investment Management Company LLC, 1633 Broadway, New York, NY 10019 or the
Registrant&#146;s custodian, State Street Bank and Trust Company, 801 Pennsylvania Avenue, Kansas City, Missouri 64105. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="12%" VALIGN="top" ALIGN="left"><B>Item&nbsp;33:</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Management Services </B></TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman">Not applicable. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">-3- </P>


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<TD WIDTH="12%" VALIGN="top" ALIGN="left"><B>Item&nbsp;34:</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Undertakings </B></TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="7%" VALIGN="top" ALIGN="left">1.</TD>
<TD ALIGN="left" VALIGN="top">Registrant undertakes to suspend the offering of its Common Shares until it amends the prospectus filed herewith if (1)&nbsp;subsequent to the effective date of its registration statement, the net asset value declines
more than 10&nbsp;percent from its net asset value as of the effective date of the registration statement, or (2)&nbsp;the net asset value increases to an amount greater than its net proceeds as stated in the prospectus. </TD></TR></TABLE>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR style = "page-break-inside:avoid">
<TD WIDTH="7%" VALIGN="top" ALIGN="left">2.</TD>
<TD ALIGN="left" VALIGN="top">Not applicable. </TD></TR></TABLE> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="7%" VALIGN="top" ALIGN="left">3.</TD>
<TD ALIGN="left" VALIGN="top">Not applicable. </TD></TR></TABLE> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR style = "page-break-inside:avoid">
<TD WIDTH="7%" VALIGN="top" ALIGN="left">4.</TD>
<TD ALIGN="left" VALIGN="top">The Registrant undertakes: </TD></TR></TABLE> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="7%" VALIGN="top" ALIGN="left">(a)</TD>
<TD ALIGN="left" VALIGN="top">to file, during any period in which offers or sales are being made, a post-effective amendment to this Registration Statement: </TD></TR></TABLE> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="14%">&nbsp;</TD>
<TD WIDTH="7%" VALIGN="top" ALIGN="left">(1)</TD>
<TD ALIGN="left" VALIGN="top">to include any prospectus required by Section&nbsp;10(a)(3)&nbsp;of the Securities Act; </TD></TR></TABLE> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="14%">&nbsp;</TD>
<TD WIDTH="7%" VALIGN="top" ALIGN="left">(2)</TD>
<TD ALIGN="left" VALIGN="top">to reflect in the prospectus any facts or events after the effective date of the Registration Statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a
fundamental change in the information set forth in the Registration Statement; and </TD></TR></TABLE> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="14%">&nbsp;</TD>
<TD WIDTH="7%" VALIGN="top" ALIGN="left">(3)</TD>
<TD ALIGN="left" VALIGN="top">to include any material information with respect to the plan of distribution not previously disclosed in the Registration Statement or any material change to such information in the Registration Statement.
</TD></TR></TABLE> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="7%" VALIGN="top" ALIGN="left">(b)</TD>
<TD ALIGN="left" VALIGN="top">that for the purpose of determining any liability under the Securities Act, each post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering
of such securities at that time shall be deemed to be the initial bona fide offering thereof; </TD></TR></TABLE> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="7%" VALIGN="top" ALIGN="left">(c)</TD>
<TD ALIGN="left" VALIGN="top">to remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering; and </TD></TR></TABLE>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="7%" VALIGN="top" ALIGN="left">(d)</TD>
<TD ALIGN="left" VALIGN="top">that, for the purpose of determining liability under the Securities Act to any purchaser, if the Registrant is subject to Rule 430C: Each prospectus filed pursuant to Rule 497(b), (c), (d) or (e)&nbsp;under the
Securities Act as part of a registration statement relating to an offering, other than prospectuses filed in reliance on Rule 430A under the Securities Act shall be deemed to be part of and included in the registration statement as of the date it is
first used after effectiveness. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration or made in a document incorporated or deemed incorporated by reference into the registration
statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was
part of the registration statement or made in any such document immediately prior to such date of first use. </TD></TR></TABLE> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="7%" VALIGN="top" ALIGN="left">(e)</TD>
<TD ALIGN="left" VALIGN="top">that for the purpose of determining liability of the Registrant under the Securities Act to any purchaser in the initial distribution of securities: </TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:14%; font-size:10pt; font-family:Times New Roman">The undersigned Registrant undertakes that in a primary offering of securities of the undersigned Registrant pursuant to this registration
statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned Registrant will be a seller to
the purchaser and will be considered to offer or sell such securities to the purchaser: </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">-4- </P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>


<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="14%">&nbsp;</TD>
<TD WIDTH="7%" VALIGN="top" ALIGN="left">(1)</TD>
<TD ALIGN="left" VALIGN="top">any preliminary prospectus or prospectus of the undersigned Registrant relating to the offering required to be filed pursuant to Rule 497 under the Securities Act. </TD></TR></TABLE>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="14%">&nbsp;</TD>
<TD WIDTH="7%" VALIGN="top" ALIGN="left">(2)</TD>
<TD ALIGN="left" VALIGN="top">the portion of any advertisement pursuant to Rule 482 under the Securities Act relating to the offering containing material information about the undersigned Registrant or its securities provided by or on behalf of the
undersigned Registrant; and </TD></TR></TABLE> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="14%">&nbsp;</TD>
<TD WIDTH="7%" VALIGN="top" ALIGN="left">(3)</TD>
<TD ALIGN="left" VALIGN="top">any other communication that is an offer in the offering made by the undersigned Registrant to the purchaser. </TD></TR></TABLE> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="7%" VALIGN="top" ALIGN="left">5.</TD>
<TD ALIGN="left" VALIGN="top">The Registrant undertakes that: </TD></TR></TABLE> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="7%" VALIGN="top" ALIGN="left">a.</TD>
<TD ALIGN="left" VALIGN="top">For purposes of determining any liability under the 1933 Act, the information omitted from the form of prospectus filed as part of this registration statement in reliance upon Rule 430A and contained in the form of
prospectus filed by the Registrant under Rule 497(h) under the 1933 Act shall be deemed to be part of this registration statement as of the time it was declared effective; and </TD></TR></TABLE>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="7%" VALIGN="top" ALIGN="left">b.</TD>
<TD ALIGN="left" VALIGN="top">For the purpose of determining any liability under the 1933 Act, each post-effective amendment that contains a form of prospectus shall be deemed to be a new registration statement relating to the securities offered
therein, and the offering of the securities at that time shall be deemed to be the initial bona fide offering thereof. </TD></TR></TABLE> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="7%" VALIGN="top" ALIGN="left">6.</TD>
<TD ALIGN="left" VALIGN="top">The Registrant undertakes to send by first class mail or other means designed to ensure equally prompt delivery, within two business days of receipt of a written or oral request, any Statement of Additional Information.
</TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>NOTICE </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman">A copy of the Amended and Restated Agreement and Declaration of Trust of PIMCO Dynamic Income Fund (the &#147;Fund&#148;), together with all
amendments thereto, is on file with the Secretary of State of The Commonwealth of Massachusetts, and notice is hereby given that this instrument is executed on behalf of the Fund by any officer of the Fund as an officer and not individually and that
the obligations of or arising out of this instrument are not binding upon any of the Trustees of the Fund or shareholders of the Fund individually, but are binding only upon the assets and property of the Fund. </P>
<P STYLE="font-size:24pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">-5- </P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>

 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>SIGNATURES </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Pursuant to the requirements of the Securities Act of 1933, as amended, and the Investment Company Act of 1940, as amended, the Registrant
certifies that this Post-Effective Amendment No.&nbsp;2 to its Registration Statement meets all of the requirements for effectiveness under Rule 486(b) and has duly caused this Post-Effective Amendment No.&nbsp;2 to its Registration Statement to be
signed on its behalf by the undersigned, thereunto duly authorized, in the City of New York, and the State of New York on the 21<SUP STYLE="font-size:85%; vertical-align:top">st</SUP> day of December, 2017. </P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><DIV ALIGN="right">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="45%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt">


<TR>
<TD WIDTH="14%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="75%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="9%"></TD></TR>


<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" COLSPAN="3"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">PIMCO DYNAMIC INCOME FUND</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">By:</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="margin-top:0pt; margin-bottom:1pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Peter G. Strelow*</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">Name:&nbsp;&nbsp;</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">Peter G. Strelow</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">Title:</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">President</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD></TR>
</TABLE></DIV> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Pursuant to the requirements of the Securities Act of 1933, this Post-Effective Amendment No.&nbsp;2 to the
Registrant&#146;s Registration Statement has been signed below by the following persons in the capacities and on the date indicated. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>
<TD WIDTH="35%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="32%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="31%"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="bottom"><B><U>Name</U></B></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"><B><U>Capacity</U></B></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"><B><U>Date</U></B></TD></TR>


<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="bottom"> <P STYLE="margin-top:0pt; margin-bottom:1pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Peter G. Strelow*</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">President (Principal Executive Officer)</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">December&nbsp;21, 2017</P></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">Peter G. Strelow</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="bottom"> <P STYLE="margin-top:0pt; margin-bottom:1pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Trent W. Walker**</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">Treasurer (Principal Financial&nbsp;&amp; Accounting Officer)</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">December&nbsp;21, 2017</P></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">Trent W. Walker</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="24"></TD>
<TD HEIGHT="24" COLSPAN="2"></TD>
<TD HEIGHT="24" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="bottom"> <P STYLE="margin-top:0pt; margin-bottom:1pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Craig A. Dawson*</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">Trustee</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">December&nbsp;21, 2017</P></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">Craig A. Dawson</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="24"></TD>
<TD HEIGHT="24" COLSPAN="2"></TD>
<TD HEIGHT="24" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="bottom"> <P STYLE="margin-top:0pt; margin-bottom:1pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Deborah A. DeCotis*</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">Trustee</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">December&nbsp;21, 2017</P></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">Deborah A. DeCotis</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="24"></TD>
<TD HEIGHT="24" COLSPAN="2"></TD>
<TD HEIGHT="24" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="bottom"> <P STYLE="margin-top:0pt; margin-bottom:1pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Bradford K. Gallagher*</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">Trustee</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">December&nbsp;21, 2017</P></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">Bradford K. Gallagher</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="24"></TD>
<TD HEIGHT="24" COLSPAN="2"></TD>
<TD HEIGHT="24" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="bottom"> <P STYLE="margin-top:0pt; margin-bottom:1pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman" ALIGN="justify">James A. Jacobson*</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">Trustee</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">December&nbsp;21, 2017</P></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">James A. Jacobson</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="24"></TD>
<TD HEIGHT="24" COLSPAN="2"></TD>
<TD HEIGHT="24" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="bottom"> <P STYLE="margin-top:0pt; margin-bottom:1pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Hans W. Kertess*</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">Trustee</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">December&nbsp;21, 2017</P></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">Hans W. Kertess</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="24"></TD>
<TD HEIGHT="24" COLSPAN="2"></TD>
<TD HEIGHT="24" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="bottom"> <P STYLE="margin-top:0pt; margin-bottom:1pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman" ALIGN="justify">John C. Maney*</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">Trustee</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">December&nbsp;21, 2017</P></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">John C. Maney</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="24"></TD>
<TD HEIGHT="24" COLSPAN="2"></TD>
<TD HEIGHT="24" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="bottom"> <P STYLE="margin-top:0pt; margin-bottom:1pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman" ALIGN="justify">William B. Ogden, IV*</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">Trustee</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">December&nbsp;21, 2017</P></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">William B. Ogden, IV</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD></TR></TABLE>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">-6- </P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>


<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>
<TD WIDTH="35%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="32%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="31%"></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>

<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="bottom"> <P STYLE="margin-top:0pt; margin-bottom:1pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Alan Rappaport*</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">Trustee</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">December&nbsp;21, 2017</P></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">Alan Rappaport</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD></TR></TABLE> <P STYLE="font-size:36pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="40%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt">


<TR>
<TD WIDTH="8%"></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD WIDTH="90%"></TD></TR>

<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt"><SUP STYLE="font-size:85%; vertical-align:top">*</SUP>By:</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt"><U>/s/ David C. Sullivan</U></P></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">David C. Sullivan</P></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">as <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">attorney-in-fact</FONT></FONT></P></TD></TR>
</TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><SUP STYLE="font-size:85%; vertical-align:top">*</SUP>Pursuant to power of attorney filed on January&nbsp;17, 2017 with the
Registrant&#146;s Registration Statement on Form <FONT STYLE="white-space:nowrap">N-2,</FONT> Registration <FONT STYLE="white-space:nowrap">Nos.&nbsp;333-215573</FONT> and 811- 22673. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify"><SUP STYLE="font-size:85%; vertical-align:top">**</SUP>Pursuant to power of attorney filed herewith. </P>
<P STYLE="font-size:24pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">-7- </P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>

 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>INDEX OF EXHIBITS </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>
<TD></TD>
<TD VALIGN="bottom" WIDTH="4%"></TD>
<TD WIDTH="92%"></TD></TR>


<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:7.5pt">
<TD VALIGN="top"><B>Exhibit</B></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"><B>Exhibit Name</B></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">n.</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">Consent of PricewaterhouseCoopers LLP, the Registrant&#146;s independent registered public accounting firm</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">r.1.</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">Code of Ethics of Registrant</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">r.2.</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">Code of Ethics of Pacific Investment Management Company LLC</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">s.2.</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">Power of Attorney for Trent W. Walker</TD></TR>
</TABLE>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">-8- </P>

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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.N
<SEQUENCE>2
<FILENAME>d450385dex99n.htm
<DESCRIPTION>CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
<TEXT>
<HTML><HEAD>
<TITLE>Consent of Independent Registered Public Accounting Firm</TITLE>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><U>CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM </U></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">We hereby consent to the incorporation by reference in this Registration Statement on Form <FONT STYLE="white-space:nowrap">N-2</FONT> of our report dated
August&nbsp;25, 2017, relating to the financial statements and financial highlights which appears in PIMCO Dynamic Income Fund&#146;s Annual Report on Form&nbsp;N-CSR for the year ended June 30, 2017. We also consent to the references to us under
the headings &#147;Financial Statements&#148;, &#147;Independent Registered Public Accounting Firm&#148; and &#147;Financial Highlights&#148; in such Registration Statement. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">/s/ PricewaterhouseCoopers LLP </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">PricewaterhouseCoopers LLP </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Kansas City, Missouri </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">December&nbsp;21, 2017 </P>
<P STYLE="font-size:12pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P>
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<DOCUMENT>
<TYPE>EX-99.R.1
<SEQUENCE>3
<FILENAME>d450385dex99r1.htm
<DESCRIPTION>CODE OF ETHICS OF REGISTRANT
<TEXT>
<HTML><HEAD>
<TITLE>Code of Ethics of Registrant</TITLE>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B><U>Code of Ethics </U></B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>PIMCO Funds </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>PIMCO
Variable Insurance Trust </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>PIMCO ETF Trust </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>PIMCO Equity Series </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>PIMCO Equity Series VIT </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>PIMCO Managed Accounts Trust </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>PIMCO Sponsored <FONT STYLE="white-space:nowrap">Closed-End</FONT> Funds </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>PIMCO Sponsored Interval Funds </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Pacific Investment Management Company LLC (&#147;PIMCO&#148;), the investment adviser and administrator or investment manager to PIMCO Funds,
PIMCO Variable Insurance Trust, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, the PIMCO Sponsored <FONT STYLE="white-space:nowrap">Closed-End</FONT> Funds, and the PIMCO Sponsored Interval Funds (each a
&#147;Fund&#148;, and collectively the &#147;Funds&#148;), has adopted a Code of Ethics that applies to any officer, director, or employee of PIMCO. The following Code of Ethics (the &#147;Code&#148;) is adopted by each Fund pursuant to Rule <FONT
STYLE="white-space:nowrap">17j-1</FONT> of the Investment Company Act of 1940 (the &#147;Act&#148;). This Code is intended to ensure that all acts, practices and courses of business engaged in by access persons (as defined in this Code) of each Fund
reflect high standards and comply with the requirements of Section&nbsp;17(j) of the Act and <FONT STYLE="white-space:nowrap">Rule&nbsp;17j-1</FONT> thereunder. This Code incorporates the PIMCO Code of Ethics (the &#147;PIMCO Code&#148;) with
respect to any officer, employee, associated person, or director of PIMCO who may be an &#147;access person&#148; or &#147;advisory person&#148; of each Fund, as defined in the Rule. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">This Code is not applicable to any Trustee<SUP STYLE="font-size:85%; vertical-align:top">1</SUP> or officer of a Fund or any other access
person who is employed by PIMCO or Allianz Asset Management of America L.P. (&#147;AAM&#148;) as each such person is already covered by the PIMCO Code or the Code of Ethics adopted by AAM (the &#147;AAM Code&#148;). </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">This Code sets forth general fiduciary standards and standards of business conduct that govern the personal investment activities of access
persons in accordance with Rule <FONT STYLE="white-space:nowrap">17j-1.</FONT> Certain personal trading restrictions and reporting obligations under the Code may not be applicable under circumstances in which an access person does not obtain access
to particular types of information (as defined in the Code). Access persons should contact the Chief Compliance Officer (the &#147;CCO&#148;) of the relevant Fund with any questions regarding the applicability of the Code&#146;s provisions. </P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:12pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="5%" VALIGN="top" ALIGN="left">I.</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt"><U>Definitions</U> </P></TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:5%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(A) &#147;Access person&#148; means any director, trustee, officer, general partner, or advisory person (as defined in this
Code) of a Fund or PIMCO. However, the term &#147;access person,&#148; as contained herein, shall not include any Trustee or officer of the Fund or any other access person of the Fund who is subject to the Code of Ethics adopted by PIMCO
(&#147;PIMCO Personnel&#148;) or the AAM Code. PIMCO has represented to the Trustees of each Fund that the PIMCO Code covers all of the officers of the Fund and any other access persons of the Fund, with the exception of (i)&nbsp;the </P>
<P STYLE="line-height:8.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000;width:31%">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><SUP STYLE="font-size:85%; vertical-align:top">1</SUP>&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">References to &#147;Trustees&#148; include Directors, as applicable. </P></TD></TR></TABLE>

<p Style='page-break-before:always'>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="right">Code of Ethics </P> <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Trustees who are not &#147;interested persons&#148; of the Fund within the meaning of Section&nbsp;2(a)(19) of the Act (&#147;Independent
Trustees&#148;) and (ii)&nbsp;Trustee(s) who are &#147;interested persons&#148; of the Fund but are covered by the AAM Code (such Trustee(s), together with the Independent Trustees, the <FONT STYLE="white-space:nowrap">&#147;Non-PIMCO</FONT>
Trustees&#148;). </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:5%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(B) &#147;Advisory person&#148; means (1)&nbsp;any director, trustee, officer, general partner or
employee of a Fund or PIMCO (or of any company in a control relationship to the Fund or PIMCO), who, in connection with his or her regular functions or duties, makes, participates in, or obtains information regarding the purchase or sale of a
financial instrument (as defined in this Code) by the Fund, or whose functions relate to the making of any recommendations with respect to such purchases or sales; and (2)&nbsp;any natural person in a control relationship to the Fund or PIMCO who
obtains information concerning recommendations made to the Fund with regard to the purchase or sale of a financial instrument. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:5%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(C) A financial instrument is &#147;being considered for purchase or sale&#148; when a recommendation to purchase or sell a
financial instrument has been made and communicated or, with respect to the person making the recommendation, when such person seriously considers making such a recommendation. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:5%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(D) A financial instrument is &#147;being purchased or sold&#148; by a Fund from the time when a purchase or sale program has
been communicated to the person who places the buy and sell orders for the Fund until the time when such program has been fully completed or terminated. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:5%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(E) &#147;Beneficial ownership&#148; shall be interpreted in the same manner as it would be under Rule <FONT
STYLE="white-space:nowrap">16a-1(a)(2)</FONT> in determining whether a person is subject to the provisions of Section&nbsp;16 of the Securities Exchange Act of 1934 and the rules and regulations thereunder. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:5%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(F) &#147;Control&#148; has the same meaning as that set forth in Section&nbsp;2(a)(9) of the Act. Section&nbsp;2(a)(9)
provides that &#147;control&#148; generally means the power to exercise a controlling influence over the management or policies of a company, unless such power is solely the result of an official position with such company. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:5%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(G) A &#147;financial instrument held or to be acquired&#148; by a Fund means: (1)&nbsp;any financial instrument which, within
the most recent 15 days: (a)&nbsp;is or has been held by the Fund; or (b)&nbsp;is being or has been considered by the Fund or PIMCO for purchase by the Fund; and (2)&nbsp;any option to purchase or sell, and any financial instrument convertible into
or exchangeable for, a financial instrument described in Section I (K)&nbsp;of this Code. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:5%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(H) An &#147;initial public
offering&#148; means an offering of securities registered under the Securities Act of 1933, the issuer of which, immediately before the registration, was not subject to the reporting requirements of Section&nbsp;13 or 15(d) of the Securities
Exchange Act of 1934. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:5%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(I) &#147;Investment personnel&#148; means: (1)&nbsp;any employee of a Fund or PIMCO (or of any
company in a control relationship to the Fund or PIMCO) who, in connection with his or her regular functions or duties, makes or participates in making recommendations regarding the purchase or </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">2 </P>


<p Style='page-break-before:always'>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="right">Code of Ethics </P> <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">sale of financial instruments by the Fund; and (2)&nbsp;any natural person who controls the Fund or PIMCO and who obtains information
concerning recommendations made to the Fund regarding the purchase or sale of financial instruments by the Fund. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:5%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(J) A
&#147;limited offering&#148; means an offering that is exempt from registration under the Securities Act of 1933 pursuant to Section&nbsp;4(a)(2) or Section&nbsp;4(a)(6) or pursuant to Rule 504, Rule 505, or Rule 506 under the Securities Act of
1933. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:5%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(K) &#147;Security&#148; has the meaning set forth in Section&nbsp;2(a)(36) of the Act, except that it shall not
include direct obligations of the Government of the United States, bankers&#146; acceptances, bank certificates of deposit, commercial paper and high quality short-term debt instruments, including repurchase agreements, and shares of registered <FONT
STYLE="white-space:nowrap">open-end</FONT> investment companies (excluding exchange-traded funds other than a series of the Funds), or such other securities as may be excepted under the provisions of Rule
<FONT STYLE="white-space:nowrap">17j-1</FONT> (such securities, &#147;excluded securities&#148;). For the avoidance of doubt, exchange-traded funds, whether registered as <FONT STYLE="white-space:nowrap">open-end</FONT> investment companies or unit
investment trusts, are deemed to be securities, provided that series of the Funds shall not be deemed to be securities. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:5%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(L) &#147;Automatic Investment Plan&#148; means a program in which regular periodic purchases (or withdrawals) are made
automatically in (or from) investment accounts in accordance with a predetermined schedule and allocation. An Automatic Investment Plan includes a dividend reinvestment plan. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:5%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(M) &#147;Financial instrument&#148; means a security, derivative, commodity or currency as investment. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:5%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(N) &#147;Derivative&#148;<B> </B>means (1)&nbsp;a futures contract and an option on a futures contract traded on a U.S. or <FONT
STYLE="white-space:nowrap">non-U.S.</FONT> board of trade, such as the Chicago Board of Trade or the London International Financial Futures Exchange; and (2)&nbsp;a forward contract, a &#147;swap&#148;, a &#147;cap&#148;, a &#147;collar&#148;, a
&#147;floor&#148; and an <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">over-the-counter</FONT></FONT> option (other than an option on a foreign currency, an option on a basket of currencies, an option on a security or an option
on an index of securities, which are included in the definition of &#147;security&#148;). Questions regarding whether a particular instrument or transaction is a derivative for purposes of this policy should be directed to PIMCO Compliance. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:5%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(O) &#147;Personal securities transactions&#148; shall include transactions in securities, derivatives, currencies for
investment purposes and commodities for investment purposes. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:12pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="5%" VALIGN="top" ALIGN="left">II.</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt"><U>Prohibited Purchases and Sales</U> </P></TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:5%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(A) No access person shall, in connection with the purchase or sale, directly or indirectly, by such person of a financial
instrument held or to be acquired by a Fund: </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(1) employ any device, scheme or artifice to defraud the Fund; </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(2) make to the Fund any untrue statement of a material fact or omit to state to the Fund a material fact necessary in order
to make the statements made, in light of the circumstances under which they are made, not misleading; </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">3 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="right">Code of Ethics </P> <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(3) engage in any act, practice or course of business which would operate as a fraud or deceit upon the Fund; or </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(4) engage in any manipulative practice with respect to the Fund. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:5%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(B) In this connection, it shall be impermissible for any access person to purchase or sell, directly or indirectly, any
financial instrument (or any option to purchase or sell such financial instrument) in which he or she has, or by reason of such transaction acquires, any direct or indirect beneficial ownership and which he or she knows or, in the ordinary course of
fulfilling his or her official duties as such access person, should have known, at the time of such purchase or sale: </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:12pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="10%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">(1)</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">is being considered for purchase or sale by a Fund, or </P></TD></TR></TABLE>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:12pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="10%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">(2)</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">is being purchased or sold by a Fund. </P></TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:5%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">This prohibition shall apply to a transaction if it occurs within 15 days prior to or after either: </P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:12pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="10%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">(1)</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">the purchase or sale of such financial instrument by a Fund; or </P></TD></TR></TABLE>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:12pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="10%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">(2)</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">the consideration of such purchase or sale by a Fund or PIMCO. </P></TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:5%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(C) With respect to investment personnel not subject to the PIMCO Code or the AAM Code, no such investment personnel may
acquire any direct or indirect beneficial ownership in any securities in an initial public offering or in a limited offering unless the CCO of the Fund (or his or her designee), as appropriate, has authorized the transaction in advance. All other
investment personnel are subject to the PIMCO Code or AAM Code, which contain substantively equivalent provisions concerning initial public offerings and limited offerings. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:5%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(D) With respect to the PIMCO Sponsored <FONT STYLE="white-space:nowrap">Closed-End</FONT> Funds and PIMCO Sponsored Interval
Funds, <FONT STYLE="white-space:nowrap">Non-PIMCO</FONT> Trustees who serve on the Board of the applicable Fund may not transact in the shares of such Fund unless he or she receives preclearance from the Fund&#146;s CCO, or his or her designee, in
writing. In order to receive preclearance: </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:12pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="10%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">(1)</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">A <FONT STYLE="white-space:nowrap">Non-PIMCO</FONT> Trustee must have submitted a preclearance request in
writing on the applicable form attached to this Code as Appendix VI, or in such other form as is deemed acceptable by the CCO or his or her designee; and </P></TD></TR></TABLE> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:12pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="10%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">(2)</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">It must be determined that the purchase or sale of the <FONT STYLE="white-space:nowrap">Closed-End</FONT> Fund
or Interval Fund shares complies with this Code, including the other provisions of this Section II. </P></TD></TR></TABLE>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">4 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="right">Code of Ethics </P> <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:5%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">It is noted that PIMCO Personnel may be subject to preclearance requirements for shares of PIMCO Sponsored <FONT
STYLE="white-space:nowrap">Closed-End</FONT> Funds and the PIMCO Sponsored Interval Funds, restrictions on transactions in initial public offerings, private placements and hedge funds and trading in <FONT STYLE="white-space:nowrap">closed-end</FONT>
funds during certain periods, as set forth in the PIMCO Code. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:5%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(E) The fiduciary principles of this Code and securities
and commodities laws prohibit any access person from purchasing or selling, directly or indirectly, any financial instrument based on material, <FONT STYLE="white-space:nowrap">non-public</FONT> information (&#147;MNPI&#148;) received from any
source or communicating this information to others. The insider trading prohibition also applies to MNPI received with respect to any Fund, including information concerning events that may immediately impact the publicly traded share price or net
asset value of a Fund. Accordingly, the Independent Trustees are prohibited from purchasing or selling, directly or indirectly, any shares of a Fund based on MNPI. The CCO, PIMCO legal counsel and/or counsel to the Independent Trustees will monitor
for situations in which the Independent Trustees receive MNPI relating to a Fund and, if the Independent Trustees receive such MNPI, advise the Independent Trustees as appropriate. The same procedure will be followed with respect to MNPI that may be
received by the Independent Trustees with respect to a financial instrument held by a Fund. If an access person believes he or she may have access to material, <FONT STYLE="white-space:nowrap">non-public</FONT> information or is unsure about whether
information is material or <FONT STYLE="white-space:nowrap">non-public,</FONT> such access person should consult the CCO of the relevant Fund. Please refer to Appendix VII for a brief reference guide regarding MNPI. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:5%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(F) Any access person who questions whether a contemplated transaction is prohibited by this Code should discuss the
transaction with the CCO of the relevant Fund (or his or her designee), or both, as appropriate, prior to proceeding with the transaction. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:12pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="5%" VALIGN="top" ALIGN="left">III.</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt"><U>Exempted Transactions</U> </P></TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The prohibitions of Section II(B), II(C) and, to the extent indicated below, II(D) of this Code shall not apply to the following transactions
by access persons: </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(1) Purchases or sales of financial instruments over which the access person has no direct or
indirect influence or control (exemption applies to Section II(D)); </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(2) Purchases or sales of financial instruments
which are not eligible for purchase or sale by a Fund; </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(3) Purchases or sales of financial instruments which are <FONT
STYLE="white-space:nowrap">non-volitional</FONT> on the part of either the access person or a Fund (exemption applies to Section II(D)); </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(4) Purchases of financial instruments which are part of an Automatic Investment Plan (exemption applies to Section II(D));
</P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(5) Purchases of securities effected upon the exercise of rights issued by an issuer <U>pro</U> <U>rata</U> to all
holders of a class of its securities, to the extent such rights were acquired from such issuer (exemption applies to Section II(D)); </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">5 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="right">Code of Ethics </P> <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(6) Transactions which appear to the CCO of the Fund (or his or her designee), as appropriate, to present no reasonable
likelihood of harm to the Fund, which are otherwise in accordance with Rule <FONT STYLE="white-space:nowrap">17j-1,</FONT> and which the CCO of the Fund (or his or her designee), as appropriate, has authorized in advance; </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(7) Purchases or sales of derivatives on broad-based indices and major market currencies; and </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(8) Purchases or sales of physical currencies and physical commodities. </P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR style = "page-break-inside:avoid">
<TD WIDTH="5%" VALIGN="top" ALIGN="left">IV.</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt"><U>Reporting</U> </P></TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:5%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(A) Every access person shall file with the Fund reports containing the information described in Sections&nbsp;IV(B), (C) and
(D)&nbsp;of this Code with respect to transactions in any financial instrument in which such access person has, or by reason of such transaction acquires, any direct or indirect beneficial ownership in the financial instrument (regardless of whether
such transaction is listed in Section III (1)&nbsp;through (6)), provided, however, that such access person shall not be required to make a report with respect to transactions effected for any account over which such person does not have any direct
or indirect influences or control; provided, further, that if such access person is an Independent Trustee, and would be required to make such a report solely by reason of being a Trustee of the Fund, such Trustee is not required to file a report
under this Section IV, except that, where such Trustee knew or, in the ordinary course of fulfilling his or her official duties as a Trustee of the Fund, should have known that during the <FONT STYLE="white-space:nowrap">15-day</FONT> period
immediately preceding or after the date of the transaction in a financial instrument by the Trustee, such financial instrument is or was purchased or sold by the Fund or such purchase or sale by the Fund is or was considered by the Fund or PIMCO,
such Trustee must file a Quarterly Transaction Report under Section IV(C). PIMCO does not intend to provide any information to the Independent Trustees in the ordinary course about Fund transactions occurring within the 15 day period immediately
preceding or after a transaction by a Trustee, and as such, Quarterly Transaction Reports will typically not be required to be filed by Independent Trustees. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:5%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(B) <U>Initial Holding Reports</U>. No later than ten (10)&nbsp;days after a person becomes an access person, the person shall
file a report containing the following information (which information must be current as of a date no more than 45 days prior to the date the person becomes an access person): </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(1) The title, number of shares and principal amount of each financial instrument in which the access person had any direct
or indirect beneficial ownership when the person became an access person; </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(2) The name of any broker, dealer or bank
with whom the access person maintained an account in which any financial instruments (including excluded securities) were held for the direct or indirect benefit of the access person as of the date the person became an access person; and </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">6 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="right">Code of Ethics </P> <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:5%; text-indent:5%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(3) The date that the report is submitted by the access person. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:5%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(C) <U>Quarterly Reports</U>. <I>Transaction Report. </I>No later than thirty (30)&nbsp;days after the end of the calendar
quarter in which the transaction to which the report relates was effected, every access person shall file a report containing the following information: </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(1) The date of the transaction, the title, the interest rate and maturity (if applicable), the number of shares, and the
principal amount of each financial instrument involved; </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(2) The nature of the transaction (<U>i.e.</U>, purchase, sale
or any other type of acquisition or disposition), including information sufficient to establish any exemption listed in Section III (2)&nbsp;through (6), or exception to Section II(C) which is relied upon; </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(3)The price at which the transaction was effected; </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(4) The name of the broker, dealer or bank with or through whom the transaction was effected; and </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(5) The date that the report is submitted by the access person. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><I>Account Report.</I> With respect to any account established by an access person in which any financial instruments
(including excluded securities) were held during the quarter for the direct or indirect benefit of the access person, the access person shall file a report containing the following information: </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(1) The name of the broker, dealer or bank with whom the access person established the account; </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(2) The date the account was established; and </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(3) The date that the report is submitted by the access person. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman" ALIGN="justify"><I>Automatic Investment Plans</I>. An access person need not make a quarterly transaction report with respect to transactions
effected pursuant to an Automatic Investment Plan. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:5%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(D) <U>Annual Holdings Reports</U>. Annually, every access person
shall file a report containing the following information (which information must be current as of a date no more than 45 days before the report is submitted): </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(1) The title, number of shares and principal amount of each financial instrument in which the access person had any direct
or indirect beneficial ownership; </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(2) The name of any broker, dealer or bank with whom the access person maintains an
account in which any financial instruments (including excluded securities) are held for the direct or indirect benefit of the access person; and </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">7 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="right">Code of Ethics </P> <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(3) The date that the report is submitted by the access person. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:5%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(E) Any report may contain a statement that the report shall not be construed as an admission by the person making such report
that he or she has any direct or indirect beneficial ownership in the financial instrument to which the report relates, and the existence of any report shall not be construed as an admission that any event reported on constitutes a violation of
Section II(A) hereof. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:5%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(F) If any access person is required to file reports of all his or her personal securities
transactions on a current basis with the CCO of a Fund (or his or her designee), and such reports contain the information required by Section IV (C), such reports shall be deemed to be sufficient for purposes of Section IV(C) of this Code and no
separate report shall be required. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:5%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(G) All reports of personal securities transactions and any other information filed
with a Fund pursuant to this Code shall be treated as confidential, except as regards appropriate examinations by representatives of the SEC or other regulatory body having jurisdiction. </P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR style = "page-break-inside:avoid">
<TD WIDTH="5%" VALIGN="top" ALIGN="left">V.</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt"><U>Review, Enforcement and Compliance</U> </P></TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:5%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(A) <U>Review</U> </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(1) The CCO of each Fund (or his or her designee) shall from time to time review the reported personal securities
transactions of the access persons to determine whether any transaction (&#147;Reviewable Transactions&#148;) listed in Section II may have occurred.<SUP STYLE="font-size:85%; vertical-align:top">2</SUP> </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(2) If the CCO of the relevant Fund (or his or her designee) determines that a Reviewable Transaction may have occurred, he
or she shall then determine whether a violation of this Code may have occurred, taking into account all the exemptions provided under Section III. Before making any determination that a violation has been committed by an individual, the CCO of the
relevant Fund (or his or her designee) shall give such person an opportunity to supply additional information regarding the transaction in question. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:5%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(B) <U>Enforcement</U> </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(1) If the CCO of a Fund (or his or her designee) determines that a violation of this Code may have occurred, he or she shall
take such steps as he or she deems appropriate under the circumstances, including, if appropriate, notification of the Trustees of the Fund. The Trustees, with the exception of any person whose transaction is under consideration, shall take such
actions as they consider appropriate, including imposition of any sanctions that they consider appropriate. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(2) No
person shall participate in a determination of whether he or she has </P> <P STYLE="line-height:8.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000;width:31%">&nbsp;</P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify"><SUP STYLE="font-size:85%; vertical-align:top">2</SUP> The CCO of PIMCO, or his or her designee, reviews the personal trading activity of
access persons subject to the PIMCO Code on a quarterly basis. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">8 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="right">Code of Ethics </P> <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">committed a violation of this Code or in the imposition of any sanction against himself/herself. If, for example, a personal securities
transaction of the CCO of a Fund is under consideration, a Trustee of the Fund designated for the purpose by the Trustees of the Fund shall act in all respects in the manner prescribed herein for the CCO. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:5%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(C) <U>Compliance</U> </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(1) The CCO of each Fund (or his or her designee) shall identify all access persons required to make reports under this Code
and inform them of their reporting obligation. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(2) Each access person shall be required to sign an acknowledgement that
such person has read and understands this Code. A form for this purpose is attached to this Code as Appendix I. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(3) Each
access person shall be required to certify annually that such person has complied with the requirements of this Code during the prior year, and that such person has disclosed, reported, or caused to be reported all transactions during the prior year
in financial instruments of which such person had or acquired beneficial ownership. A form for this purpose is attached to this Code as Appendix II. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(4) No less frequently than annually, each Fund shall furnish to the Fund&#146;s Board of Trustees, and the Board must
consider, a written report that: </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:15%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(i) Describes any issues arising under the Code or procedures since the last report to
the Board of Trustees, including, but not limited to, information about material violations of the Code or procedures and sanctions imposed in response to the material violations; and </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:15%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(ii) Certifies that the Fund has adopted procedures reasonably necessary to prevent access person from violating the Code. A
form for this purpose is attached to this Code as Appendices III, IV and V. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR style = "page-break-inside:avoid">
<TD WIDTH="5%" VALIGN="top" ALIGN="left">VI.</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt"><U>Records</U> </P></TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Each Fund shall maintain records in the manner and to the extent set forth below, under the conditions described in Rule <FONT
STYLE="white-space:nowrap">31a-2(f)(1)</FONT> under the Act and shall be available for appropriate examination by representatives of the Securities and Exchange Commission (&#147;SEC&#148;). </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(1) A copy of this Code and any other Code of Ethics which is, or at any time within the past five years has been, in effect
shall be preserved in an easily accessible place; </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(2) A record of any violation of this Code and of any action taken as
a result of such violation shall be preserved in an easily accessible place for a period of not less than five years following the end of the fiscal year in which the violation occurs; </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">9 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="right">Code of Ethics </P> <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(3) A copy of each report made pursuant to this Code by an access person, including any information provided under Section
IV(F) in lieu of the reports under Section IV(C), shall be preserved by the Fund for a period of not less than five years from the end of the fiscal year in which it is made, the first two years in an easily accessible place; </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(4) A list of all persons who are, or within the past five years have been, required to make reports pursuant to this Code,
or who are or were responsible for reviewing these reports, shall be maintained in an easily accessible place. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(5) A
copy of each report required by Section V(C)(4) of the Code shall be preserved by the Fund for at least five years after the end of the fiscal year in which it is made, the first two years in an easily accessible place. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:10%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(6) The Fund shall preserve a record of any decision, and the reasons supporting the decision, to approve the acquisition by
investment personnel of financial instruments under Section II(C) of this Code, for at least five years after the end of the fiscal year in which the approval is granted. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:12pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="5%" VALIGN="top" ALIGN="left">VII.</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt"><U>Fiduciary Duties</U> </P></TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:5%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(A) <U>Disclosure of <FONT STYLE="white-space:nowrap">Non-Public</FONT> Portfolio Holdings Information</U>. If an access
person has access to <FONT STYLE="white-space:nowrap">non-public</FONT> portfolio holdings information of a Fund, then he or she must treat <FONT STYLE="white-space:nowrap">non-public</FONT> portfolio holdings information of a Fund in accordance
with the Funds&#146; Portfolio Holdings Disclosure Policies and Procedures. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:5%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">(B) <U>Confidentiality</U>. The officers and
Trustees of each Fund acknowledge that each Fund discloses to its officers and Trustees, and such persons will otherwise come into possession of while acting in their capacities as officers or Trustees, certain information and data which a Fund
wishes to keep confidential, including, but not limited to, information regarding a Fund&#146;s governance, Board of Trustees, officers and other management (including regarding the Fund&#146;s investment advisers and
<FONT STYLE="white-space:nowrap">sub-advisers),</FONT> minutes and other records of meetings, investment program, strategies and performance, portfolio holdings, dividends and distributions, secondary offerings, investment leverage, compliance,
legal and regulatory matters (including Fund policies and procedures), valuation of assets, administration, custody, finances or operations (including information relating to financial statements), corporate actions, strategic plans, litigation and
regulatory inquiries, communications, examinations and enforcement activities, shareholders and related communications, marketing, intellectual property and trade secrets, and information which is proprietary to the Fund or its advisers or which the
Fund has obtained from third parties and with respect to which the Fund is obligated to maintain confidentiality (collectively, &#147;Confidential Information&#148;). The officers and Trustees of each Fund acknowledge that each Fund&#146;s business
is extremely competitive, dependent in part upon the maintenance of confidentiality, and that any disclosure of Confidential Information could result in serious harm to a Fund or its officers, Trustees or management. For these reasons, as officers
or Trustees of one or more Funds, you must use Confidential Information only in connection with your duties as a Fund officer or Trustee and may not use Confidential Information in any way that is or could be deemed to be detrimental to a Fund
</P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">10 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="right">Code of Ethics </P> <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">or its officers, Trustees or management. Further, you may not disclose, directly or indirectly, Confidential Information with respect to a Fund
to any third person or entity, other than representatives of Fund management and their affiliates and authorized representatives or agents of the Fund, and only to the extent that such person or entity requires such Confidential Information in order
to perform services for a Fund, and must treat all such information as confidential and proprietary property of the Fund. Individuals who no longer serve as Fund officers or Trustees may not disclose, directly or indirectly, Confidential Information
that they obtained during their service as a Fund officer or Trustee, other than as provided for in the preceding sentence. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">From time to
time, the Boards of Trustees of the Funds may conduct joint meetings of the Boards of Trustees of some or all of the Funds. In connection with such joint meetings, a Trustee or officer may come into possession of Confidential Information with
respect to a Fund that he or she does not oversee. The preceding paragraph shall apply to the receipt of Confidential Information by a Trustee or officer under such circumstances. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">In addition to the general obligations regarding Confidential Information discussed above and in acknowledgement of the fact that the role of
Independent Trustees and of chairpersons and members of committees of the Board of Trustees may be misconstrued by the general public, Independent Trustees should not comment to the press or make any postings or comments on the internet or any form
of social media, including blogs or other similar forums, regarding their position or matters related to their service as Independent Trustees or members of committees. Failure to abide by this policy may lead to a full range of sanctions permitted
by a Fund&#146;s organizational documents, up to and including removal from the Board of Trustees. In the event that an Independent Trustee resigns or otherwise no longer serves as an Independent Trustee, such individual is expected to continue to
abide by this policy with respect to information obtained during his or her service as an Independent Trustee. This policy does not apply to legally compelled disclosure or testimony to a regulator or court of law. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">In addition, this Code will not be interpreted or applied in any manner that would violate the legal rights of any person subject to this Code
as an employee under applicable law. For example, nothing in this Code or the Appendices attached hereto prohibits or in any way restricts any person subject to this Code from reporting possible violations of law or regulation to, otherwise
communicating directly with, cooperating with or providing information to any governmental or regulatory body or any self-regulatory organization or making other disclosures that are protected under applicable law or regulations of the SEC or any
other governmental or regulatory body or self-regulatory organization. A person subject to this Code does not need prior authorization of PIMCO or a Fund before taking any such action and is not required to inform PIMCO or a Fund if he or she
chooses to take such action. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:12pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="5%" VALIGN="top" ALIGN="left">VIII.</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt"><U>Amendment; Interpretation of Provisions</U> </P></TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">The Trustees may from time to time amend this Code or adopt such interpretations of this Code as they deem appropriate. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">11 </P>


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 <P>&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>History of Amendments </B></P>
<P STYLE="font-size:4pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P> <P STYLE="margin-top:4pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>PIMCO Funds </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>PIMCO Variable Insurance Trust </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>PIMCO ETF Trust </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman">Adopted:
September&nbsp;29, 2004 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman">Effective: October&nbsp;5, 2004 </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman">Amended: November&nbsp;16, 2004 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman">Effective: February&nbsp;1, 2005
</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman">Amended: August&nbsp;16, 2005 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman">Effective: August&nbsp;16,
2005 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman">Amended: February&nbsp;28, 2006 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman">Effective:
February&nbsp;28, 2006 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman">Amended: February&nbsp;24, 2009 </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman">Effective: February&nbsp;24, 2009 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman">Amended: May&nbsp;19, 2009
</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman">Effective: May&nbsp;19, 2009 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman">Amended: May&nbsp;25, 2010
</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman">Effective: May&nbsp;25, 2010 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman">Amended: March&nbsp;1, 2011
</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman">Effective: March&nbsp;1, 2011 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman">Amended: November&nbsp;5,
2013 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman">Effective: November&nbsp;5, 2013 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman">Amended:
August&nbsp;14, 2014 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman">Amended: September&nbsp;18, 2014 </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman">Effective: September&nbsp;18, 2014 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman">Amended: August&nbsp;11, 2015
</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman">Effective: August&nbsp;11, 2015 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman">Amended: February&nbsp;14,
2017 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman">Effective: February&nbsp;14, 2017 </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>PIMCO Equity Series </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>PIMCO Equity Series VIT </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman">Adopted:
March&nbsp;30, 2010 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman">Effective: March&nbsp;30, 2010 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman">Amended:
May&nbsp;25, 2010 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman">Effective: May&nbsp;25, 2010 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman">Amended:
March&nbsp;1, 2011 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman">Effective: March&nbsp;1, 2011 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman">Amended:
November&nbsp;7, 2013 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman">Effective: November&nbsp;7, 2013 </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman">Amended: August&nbsp;14, 2014 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman">Amended: September&nbsp;18, 2014
</P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">12 </P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="right">Code of Ethics </P> <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman">Effective: September&nbsp;18, 2014 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman">Amended: August&nbsp;11, 2015
</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman">Effective: August&nbsp;12, 2015 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman">Amended: February&nbsp;15,
2017 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman">Effective: February&nbsp;15, 2017 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman">Amended:
May&nbsp;17, 2017 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman">Effective: May&nbsp;17, 2017 </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>PIMCO Managed Accounts Trust </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>PIMCO Sponsored <FONT STYLE="white-space:nowrap">Closed-End</FONT> Funds </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman">Adopted: June&nbsp;24, 2014 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman">Effective: September&nbsp;5, 2014
</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman">Amended: September&nbsp;18, 2014 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman">Effective:
September&nbsp;18, 2014 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman">Amended: August&nbsp;11, 2015 </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman">Effective: October&nbsp;6, 2015 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman">Amended: March&nbsp;23, 2017
</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman">Effective: March&nbsp;23, 2017 </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>PIMCO
Sponsored Interval Funds </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman">Adopted: December&nbsp;14, 2016 </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman">Effective: December&nbsp;14, 2016 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman">Amended: March&nbsp;23, 2017
</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman">Effective: March&nbsp;23, 2017 </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">13 </P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="right"><B>Appendix I </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">ACKNOWLEDGMENT CERTIFICATION </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">PIMCO FUNDS </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">PIMCO VARIABLE
INSURANCE TRUST </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">PIMCO ETF TRUST </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">PIMCO EQUITY SERIES </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">PIMCO EQUITY
SERIES VIT </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">PIMCO MANAGED ACCOUNTS TRUST </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">PIMCO SPONSORED <FONT STYLE="white-space:nowrap">CLOSED-END</FONT> FUNDS </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">PIMCO SPONSORED INTERVAL FUNDS </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; text-indent:5%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">I hereby certify that I have read and understand the attached Code of Ethics. Pursuant to such Code, I have recognized that I
must disclose or report all personal securities transactions required to be disclosed or reported thereunder and comply in all other respects with the requirements of such Code. I also agree to cooperate fully with any investigation or inquiry as to
whether a possible violation of the foregoing Code has occurred. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P> <P STYLE="font-size:24pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:12pt" ALIGN="center">


<TR>
<TD WIDTH="33%"></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD WIDTH="63%"></TD></TR>


<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:12pt">
<TD VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">Date:
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">
<P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:12pt">
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">Signature</P></TD></TR>
</TABLE>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">A-1 </P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="right"><B>Appendix II </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">ANNUAL CERTIFICATION OF COMPLIANCE </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">PIMCO FUNDS </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">PIMCO VARIABLE
INSURANCE TRUST </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">PIMCO ETF TRUST </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">PIMCO EQUITY SERIES </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">PIMCO EQUITY
SERIES VIT </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">PIMCO MANAGED ACCOUNTS TRUST </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">PIMCO SPONSORED <FONT STYLE="white-space:nowrap">CLOSED-END</FONT> FUNDS </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">PIMCO SPONSORED INTERVAL FUNDS </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:5%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">I hereby certify that I have complied with the requirements of the Code of Ethics for the year ended December&nbsp;31,
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>. Pursuant to such Code, I have disclosed or reported all personal securities transactions required to be disclosed or reported thereunder and complied in all other respects with the
requirements of such Code. I also agree to cooperate fully with any investigation or inquiry as to whether a possible violation of the foregoing Code has occurred. </P> <P STYLE="font-size:36pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:12pt" ALIGN="center">


<TR>
<TD WIDTH="33%"></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD WIDTH="63%"></TD></TR>


<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:12pt">
<TD VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">Date:
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">
<P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:12pt">
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">Signature</P></TD></TR>
</TABLE>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">A-2 </P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="right"><B>Appendix III </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">ANNUAL CERTIFICATION </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">PIMCO EQUITY
SERIES </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">PIMCO EQUITY SERIES VIT </P>
<P STYLE="margin-top:48pt; margin-bottom:0pt; text-indent:5%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">I, the undersigned, hereby certify on behalf of PIMCO Equity Series and PIMCO Equity Series VIT (each a &#147;Fund&#148;), to
the Board of Trustees pursuant to Rule <FONT STYLE="white-space:nowrap">17j-1(c)(2)(B)</FONT> under the Investment Company Act of 1940, and pursuant to Section V(C)(4)(ii) of the Fund&#146;s Code of Ethics (the &#147;Code&#148;), that each Fund has
adopted procedures that are reasonably necessary to prevent access persons from violating the Code. </P> <P STYLE="font-size:36pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:12pt" ALIGN="center">


<TR>
<TD WIDTH="33%"></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD WIDTH="63%"></TD></TR>


<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:12pt">
<TD VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">Date:
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">
<P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:12pt">
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">Fund CCO</P></TD></TR>
</TABLE>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">A-3 </P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="right"><B>Appendix IV </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">ANNUAL CERTIFICATION </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">PIMCO FUNDS
</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">PIMCO VARIABLE INSURANCE TRUST </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">PIMCO ETF TRUST </P>
<P STYLE="margin-top:48pt; margin-bottom:0pt; text-indent:5%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">I, the undersigned, hereby certify on behalf of PIMCO Funds, PIMCO Variable Insurance Trust and PIMCO ETF Trust (each a
&#147;Fund&#148;), to the Board of Trustees pursuant to Rule <FONT STYLE="white-space:nowrap">17j-1(c)(2)(B)</FONT> under the Investment Company Act of 1940, and pursuant to Section V(C)(4)(ii) of the Fund&#146;s Code of Ethics (the
&#147;Code&#148;), that each Fund has adopted procedures that are reasonably necessary to prevent access persons from violating the Code. </P> <P STYLE="font-size:36pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:12pt" ALIGN="center">


<TR>
<TD WIDTH="33%"></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD WIDTH="63%"></TD></TR>


<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:12pt">
<TD VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">Date:
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">
<P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:12pt">
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">Fund CCO</P></TD></TR>
</TABLE>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">A-4 </P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="right"><B>Appendix V </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">ANNUAL CERTIFICATION </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">PIMCO
MANAGED ACCOUNTS TRUST </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">PIMCO SPONSORED <FONT STYLE="white-space:nowrap">CLOSED-END</FONT> FUNDS </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center">PIMCO SPONSORED INTERVAL FUNDS </P>
<P STYLE="margin-top:48pt; margin-bottom:0pt; text-indent:5%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">I, the undersigned, hereby certify on behalf of PIMCO Managed Accounts Trust, the PIMCO Sponsored <FONT
STYLE="white-space:nowrap">Closed-End</FONT> Funds, and the PIMCO Sponsored Interval Funds (each a &#147;Fund&#148;), to the Board of Trustees pursuant to Rule <FONT STYLE="white-space:nowrap">17j-1(c)(2)(B)</FONT> under the Investment Company Act
of 1940, and pursuant to Section V(C)(4)(ii) of the Fund&#146;s Code of Ethics (the &#147;Code&#148;), that each Fund has adopted procedures that are reasonably necessary to prevent access persons from violating the Code. </P>
<P STYLE="font-size:36pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:12pt" ALIGN="center">


<TR>
<TD WIDTH="33%"></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD WIDTH="63%"></TD></TR>


<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:12pt">
<TD VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">Date:
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">
<P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:12pt">
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">Fund CCO</P></TD></TR>
</TABLE>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">A-5 </P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="right"><B>Appendix VI </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:16pt; font-family:Times New Roman" ALIGN="center"><B>PACIFIC INVESTMENT MANAGEMENT COMPANY LLC </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B><I>PRECLEARANCE OF </I></B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B><I>PIMCO SPONSORED <FONT STYLE="white-space:nowrap">CLOSED-END</FONT> FUND </I></B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B><I>OR PIMCO SPONSORED INTERVAL FUND </I></B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B><I>SHARES TRANSACTION FORM </I></B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:9pt; font-family:Times New Roman" ALIGN="center"><B>(To be submitted to PIMCO Compliance) </B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>
<TD WIDTH="3%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="47%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="48%"></TD></TR>


<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">(1)</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">Name of trustee requesting authorization:</TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE="BORDER-BOTTOM:1px solid #000000">&nbsp;</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">(2)</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">Name of the account where the trade will occur (if different from #1):</TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE="BORDER-BOTTOM:1px solid #000000">&nbsp;</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">(3)</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">Relationship of (2)&nbsp;to (1):</TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE="BORDER-BOTTOM:1px solid #000000">&nbsp;</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">(4)</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">Name of fund and type of financial instrument (e.g. common or preferred shares):</TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE="BORDER-BOTTOM:1px solid #000000">&nbsp;</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">(5)</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">Ticker Symbol:</TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE="BORDER-BOTTOM:1px solid #000000">&nbsp;</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">(6)</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">Intended number of shares:</TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE="BORDER-BOTTOM:1px solid #000000">&nbsp;</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">(7)</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">Is the transaction being requested a purchase or sale?</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">(<B>NOTE:</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;short&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;sales&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;are&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;not<BR>permitted)</TD></TR></TABLE>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>
<TD WIDTH="3%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="60%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="35%"></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>

<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">(8)</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">Has the fund completed all its initial common and preferred shares offerings and is not otherwise engaged in an offering of its shares?</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">
<P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&nbsp;Yes<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&nbsp;No</P></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">(9)</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">Do you possess material nonpublic information regarding the financial instrument or the issuer of the financial instrument?</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">
<P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&nbsp;Yes<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&nbsp;No</P></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">(10)</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">If the requested transaction is a sale, have the shares been held at least 6&nbsp;months?</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">
<P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&nbsp;Yes<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&nbsp;No</P></TD></TR>
</TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify"><B>NOTE: If you have any questions about how to complete this form, please contact the Code of Ethics
Compliance team at <FONT STYLE="white-space:nowrap">(949)&nbsp;720-7821</FONT> or by email at <FONT STYLE="font-family:Times New Roman" COLOR="#0000ff"><U>Tradeclearcompliance@pimco.com</U>.</FONT> </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify">Approvals are valid on the day approval has been granted and the next business day (the &#147;Approval Period&#148;). Accordingly, GTC (good
till canceled) orders are prohibited. If a trade is not executed by the close of business of the Approval Period, you must submit a new preclearance request. Obtaining preclearance satisfies the preclearance requirements of the Fund&#146;s Code of
Ethics (the &#147;Code&#148;) and does not imply compliance with the Code&#146;s other provisions. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">A-6 </P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">* * * * * * </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="justify">By signing below, the undersigned certifies the following: The undersigned agrees that the above requested transaction is in compliance with
the Code and Section&nbsp;16 of the Securities and Exchange Act of 1934 and Section&nbsp;30(h) of the Investment Company Act of 1940. </P> <P STYLE="font-size:36pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>
<TD WIDTH="14%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="43%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="41%"></TD></TR>


<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" COLSPAN="3"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Trustee Signature</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="32"></TD>
<TD HEIGHT="32" COLSPAN="2"></TD>
<TD HEIGHT="32" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Date Submitted</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="24" COLSPAN="3"></TD>
<TD HEIGHT="24" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" COLSPAN="3">Authorized <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Not Authorized <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">By:</TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="top" STYLE="BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Printed Name:</TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="top" STYLE="BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Date:</TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="top" STYLE="BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD></TR>
</TABLE>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">A-7 </P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="right"><B>Appendix VII </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>Guidelines Regarding Material, <FONT STYLE="white-space:nowrap">Non-Public</FONT> Information </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Whether information is material and <FONT STYLE="white-space:nowrap">non-public</FONT> (&#147;MNPI&#148;) must be evaluated on a
fact-specific, <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">case-by-case</FONT></FONT> basis and will be judged by regulators and prosecutors with the benefit of hindsight. Identifying MNPI is highly complex and risky. DO NOT
attempt to make this judgment on your own. Contact the relevant Fund&#146;s CCO if you think you have received or may receive MNPI. DO NOT share the information you have with anyone. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><I>Examples of &#147;Material&#148; Information </I></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">A common definition is &#147;information that a reasonable investor would consider important to making an investment decision.&#148; Examples
include: </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:12pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">Earnings Results </P></TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:12pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">Earnings projections or guidance </P></TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:12pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">Merger, tender offer or joint venture </P></TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:12pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">Major change in issuer assets </P></TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:12pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">Change in control or management </P></TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:12pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">Major events regarding financial instruments (e.g., cash flows, losses, defaults) </P></TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:12pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">Financial liquidity problems, bankruptcy or receivership </P></TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:12pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">Actual or threatened litigation </P></TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:12pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">Departure of key personnel </P></TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><I>Examples of <FONT STYLE="white-space:nowrap">&#147;Non-Public&#148;</FONT> Information </I></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Information is generally deemed <FONT STYLE="white-space:nowrap">non-public</FONT> if it has not been widely disseminated to the public. Key
questions when evaluating whether information is <FONT STYLE="white-space:nowrap">non-public</FONT> include: </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:12pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">Can the information be found in an SEC filing or in any other document that is publicly available?
</P></TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:12pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">Has the information appeared in a newspaper or other publication of general circulation?
</P></TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:12pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">Is the information available on a public website? </P></TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Exercise extreme caution when information has been disseminated to only a small number of investors or others outside the issuer. The
prevalence of a market rumor does not constitute public disclosure of otherwise <FONT STYLE="white-space:nowrap">non-public</FONT> information. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">A-8 </P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><I>What is MNPI when Purchasing or Selling Funds? </I></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="justify">MNPI in the context of buying or selling Fund shares could generally include the recent or pending occurrence of one of the items below or
significant likelihood that such an item will occur, that you are aware of at the time of a possible trade, and that has not yet been made public, such as: </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><I>For All Funds: </I></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:12pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">Material changes in value of the Fund&#146;s portfolio securities that have not yet been reflected in NAV
</P></TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:12pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">Material undisclosed revenues or liabilities to be realized by the Fund (such as from litigation or resolution
of a regulatory or compliance matter) </P></TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><I>For <FONT STYLE="white-space:nowrap">Open-End</FONT> Funds and ETFs: </I></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:12pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">Material increases in illiquid or fair valued assets in the portfolio </P></TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:12pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">Actions or events likely to lead to material redemptions and/or a &#147;fire sale&#148; of Fund assets
</P></TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><I>For <FONT STYLE="white-space:nowrap">Closed-End</FONT> Funds and Interval Funds (as applicable): </I></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:12pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">Changes in dividend rates or a special dividend </P></TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:12pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">Material changes to the Fund&#146;s leverage or other strategies that will materially impact income and
dividend levels and/or result in a &#147;fire sale&#148; of Fund shares </P></TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:12pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">Actions to address trading discounts (e.g., open-ending, tender offers, open-market purchases) or secondary
offerings </P></TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:12pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">Other material corporate actions involving the Fund (e.g., a Fund merger) </P></TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:12pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">Material changes in the Fund&#146;s stated investment objectives or fundamental policies
</P></TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:12pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">A determination to liquidate a Fund </P></TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:12pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">Material regulatory action or litigation involving the Fund or PIMCO </P></TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:12pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">Material developments involving senior management at PIMCO </P></TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:12pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">Material transactions involving PIMCO (e.g., resulting in a change in control or ownership)
</P></TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:11pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:11pt">The amount and/or timing of shares repurchased pursuant to a share repurchase program, including pursuant to
Rule <FONT STYLE="white-space:nowrap">23c-3</FONT> under the 1940 Act or otherwise </P></TD></TR></TABLE> <P STYLE="font-size:12pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">A-9 </P>

</BODY></HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.R.2
<SEQUENCE>4
<FILENAME>d450385dex99r2.htm
<DESCRIPTION>CODE OF ETHICS OF PACIFIC INVESTMENT MANAGEMENT COMPANY LLC AND PIMCO INVESTMENT
<TEXT>
<HTML><HEAD>
<TITLE>Code of Ethics of Pacific Investment Management Company LLC and PIMCO Investment</TITLE>
</HEAD>
 <BODY BGCOLOR="WHITE">

 <P STYLE="margin-top:0pt;margin-bottom:0pt" ALIGN="center">


<IMG SRC="g450385wwww.jpg" ALT="LOGO">
 </P>

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<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:13pt; font-family:ARIAL"><I>PIMCO&#146;s Code of Ethics (&#147;Code&#148;) contains the rules that govern your conduct and personal trading. These
rules are summarized below. Please see the Code* for more details. </I></P> <P STYLE="margin-top:20pt; margin-bottom:0pt; font-size:10pt; font-family:ARIAL"><FONT COLOR="#0071ce"><B>YOU HAVE THE FOLLOWING FUNDAMENTAL RESPONSIBILITIES:
</B></FONT></P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:SYMBOL; " COLOR="#0071ce">&#183;</FONT></TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:ARIAL; font-size:10pt">You have a duty to place the interests of Clients first </P></TD></TR></TABLE>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:SYMBOL; " COLOR="#0071ce">&#183;</FONT></TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:ARIAL; font-size:10pt">You must avoid any actual or potential conflict of interest </P></TD></TR></TABLE>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:SYMBOL; " COLOR="#0071ce">&#183;</FONT></TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:ARIAL; font-size:10pt">You must not take inappropriate advantage of your position at PIMCO </P></TD></TR></TABLE>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:SYMBOL; " COLOR="#0071ce">&#183;</FONT></TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:ARIAL; font-size:10pt">You must comply with all applicable Securities and Commodities Laws </P></TD></TR></TABLE>
<P STYLE="margin-top:14pt; margin-bottom:0pt; font-size:10pt; font-family:ARIAL"><B>You must preclear and receive approval for your Personal Securities Transactions, unless an exemption is available. A Personal Securities Transaction is a very broad
concept and includes transactions in Securities, Derivatives, currencies for investment purposes and commodities for investment purposes. Make sure you know whether your trade is covered by this Code by checking the definitions found in Appendix I.
You can preclear and receive approval for your trade by the following <FONT STYLE="white-space:nowrap">two-step</FONT> process: </B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" ALIGN="center">


<TR>
<TD WIDTH="99%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD></TD></TR>


<TR STYLE="page-break-inside:avoid ; font-family:ARIAL; font-size:10pt">
<TD VALIGN="top" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000; BORDER-BOTTOM:1px solid #000000; padding-left:8pt"> <P STYLE="font-size:6pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:ARIAL"><B>Step 1:</B> To preclear a trade, you must input the details of the proposed trade into the TradeClear system (accessible through the PIMCO Intranet) and follow the
instructions.</P> <P STYLE="font-size:10pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:ARIAL"><B>Step 2:</B> You will receive notification as to whether your proposed trade
is approved or denied. If your proposed trade is approved, the approval is valid for the day on which the approval was granted and the following business day, unless you are notified differently by a Compliance Officer. If you do not execute your
transaction within the required timeframe or if the information in your request changes, you must repeat the preclearance process prior to undertaking the transaction.</P> <P STYLE="font-size:10pt; margin-top:0pt; margin-bottom:1pt">&nbsp;</P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-TOP:1px solid #000000; BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="top" STYLE="BORDER-TOP:1px solid #000000; BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000; padding-right:2pt">&nbsp;</TD></TR>
</TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:ARIAL">Generally, certain types of transactions, such as purchases or sales of government securities,
<FONT STYLE="white-space:nowrap">open-end</FONT> mutual funds, and interval funds, do not require preclearance and approval. See Sections III.C.2. and III.C.3. of the Code for specific guidance. </P>
<P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:ARIAL">However Portfolio Persons are subject to more restrictive <FONT STYLE="white-space:nowrap">pre-clearance</FONT> requirements that are specifically provided in Section
III.C.2.a. </P> <P STYLE="margin-top:20pt; margin-bottom:0pt; font-size:10pt; font-family:ARIAL"><FONT COLOR="#0071ce"><B><FONT STYLE="white-space:nowrap">BLACK-OUT</FONT> PERIODS FOR PORTFOLIO PERSONS: </B></FONT></P>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:SYMBOL; " COLOR="#0071ce">&#183;</FONT></TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:ARIAL; font-size:10pt">Purchases or sales prior to, and including, seven calendar days before a Client trade in the same Security, Derivative,
commodity or currency Financial Instrument or any Related Financial Instrument (each as defined in Appendix I) </P></TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:SYMBOL; " COLOR="#0071ce">&#183;</FONT></TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:ARIAL; font-size:10pt">Purchases or sales within three calendar days following a Client trade in the same Financial Instrument or any Related
Financial Instrument </P></TD></TR></TABLE> <P STYLE="margin-top:14pt; margin-bottom:0pt; font-size:10pt; font-family:ARIAL"><FONT COLOR="#0071ce"><B>PROVISIONS THAT MAY RESTRICT YOUR PERSONAL SECURITIES TRANSACTIONS: </B></FONT></P>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:SYMBOL; " COLOR="#0071ce">&#183;</FONT></TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:ARIAL; font-size:10pt">When there are pending client orders in the same Financial Instrument or a Related Financial Instrument
</P></TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:SYMBOL; " COLOR="#0071ce">&#183;</FONT></TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:ARIAL; font-size:10pt">Initial public offerings (with certain exemptions for fixed income and other securities) </P></TD></TR></TABLE>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:SYMBOL; " COLOR="#0071ce">&#183;</FONT></TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:ARIAL; font-size:10pt">Private Placements and hedge funds </P></TD></TR></TABLE>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:SYMBOL; " COLOR="#0071ce">&#183;</FONT></TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:ARIAL; font-size:10pt">Investments in Allianz SE </P></TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:SYMBOL; " COLOR="#0071ce">&#183;</FONT></TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:ARIAL; font-size:10pt"><FONT STYLE="white-space:nowrap">Black-out</FONT> periods in <FONT STYLE="white-space:nowrap">closed-end</FONT> funds
advised or subadvised by PIMCO </P></TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:SYMBOL; " COLOR="#0071ce">&#183;</FONT></TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:ARIAL; font-size:10pt">Securities on PIMCO&#146;s Trade Restricted Securities List </P></TD></TR></TABLE>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:SYMBOL; " COLOR="#0071ce">&#183;</FONT></TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:ARIAL; font-size:10pt">Section&nbsp;16 holding periods </P></TD></TR></TABLE>
<P STYLE="margin-top:14pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:ARIAL"><B>*</B> <FONT STYLE="font-family:ARIAL" COLOR="#3f595b">Capitalized terms are defined in Appendix I.</FONT><FONT STYLE="font-family:ARIAL"> </FONT></P>

 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:ARIAL" ALIGN="right"><FONT COLOR="#0071ce">CODE OF
ETHICS&nbsp;|&nbsp;JULY 2017&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2 </FONT></P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:ARIAL"><B>The Code has other requirements that may restrict your personal securities transactions in addition to those summarized
above. Please review the entire Code. Remember that you can be sanctioned for failing to comply with the Code. If you have any questions, please ask a Compliance Officer. </B></P>
<P STYLE="margin-top:30pt; margin-bottom:0pt; font-size:12pt; font-family:ARIAL"><FONT COLOR="#0071ce"><B>PIMCO CODE OF ETHICS </B></FONT></P> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT COLOR="#0071ce"><B>I.</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT COLOR="#0071ce"><B>INTRODUCTION </B></FONT></TD></TR></TABLE> <P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:ARIAL">This Code of Ethics (this &#147;Code&#148;) sets out standards of
conduct to help PIMCO&#146;s directors, officers and employees (each, an &#147;Employee&#148; and collectively, the &#147;Employees&#148;)<SUP STYLE="font-size:85%; vertical-align:top">1</SUP> avoid potential conflicts that may arise from their
actions and their Personal Securities Transactions. You must read and understand this Code.<SUP STYLE="font-size:85%; vertical-align:top">2</SUP> A Compliance Officer is the person responsible for administering this Code and can assist you with any
questions. </P> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT COLOR="#0071ce"><B>II.</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT COLOR="#0071ce"><B>YOUR FUNDAMENTAL RESPONSIBILITIES </B></FONT></TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:ARIAL">PIMCO insists on a culture that promotes honesty
and high ethical standards. This Code is intended to assist Employees in meeting the high ethical standards PIMCO follows in conducting its business. The following general fiduciary principles must govern your activities: </P>
<P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:SYMBOL; " COLOR="#0071ce">&#183;</FONT></TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:ARIAL; font-size:10pt">You have a duty to place the interests of Clients first </P></TD></TR></TABLE>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:SYMBOL; " COLOR="#0071ce">&#183;</FONT></TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:ARIAL; font-size:10pt">You must avoid any actual or potential conflict of interest </P></TD></TR></TABLE>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:SYMBOL; " COLOR="#0071ce">&#183;</FONT></TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:ARIAL; font-size:10pt">You must not take inappropriate advantage of your position at PIMCO </P></TD></TR></TABLE>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:SYMBOL; " COLOR="#0071ce">&#183;</FONT></TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:ARIAL; font-size:10pt">You must comply with all applicable Securities and Commodities Laws </P></TD></TR></TABLE>
<P STYLE="margin-top:14pt; margin-bottom:0pt; font-size:10pt; font-family:ARIAL"><B>If you violate this Code or its associated policies and procedures PIMCO may impose disciplinary action against you, including fines, disgorgement of profits, and
possibly suspension and/or dismissal. </B></P> <P STYLE="font-size:20pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT COLOR="#0071ce"><B>III.</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT COLOR="#0071ce"><B>PERSONAL INVESTMENTS </B></FONT></TD></TR></TABLE> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT COLOR="#0071ce"><B>A.</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT COLOR="#0071ce"><B>In General </B></FONT></TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:ARIAL">In general, when making personal investments you must
exercise extreme care to ensure that you do not violate this Code and your fiduciary duties. You may not take inappropriate advantage of your position at PIMCO in connection with your personal investments. This Code covers the personal investments
of all Employees and their Immediate Family Members (e.g., persons sharing the same household as the Employee). Therefore, you and your Immediate Family Members must conduct all your personal investments consistent with this Code. </P>
<P STYLE="font-size:22pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT COLOR="#0071ce"><B>B.</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT COLOR="#0071ce"><B>Disgorging Short-Term Trading Profits (&#147;30 Calendar Day Rule&#148;) </B></FONT></TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:ARIAL">PIMCO discourages its employees from engaging short-term trading strategies for their own accounts. Any excessive or inappropriate trading that, in
PIMCO&#146;s view, interferes with job performance, or compromises the duty that PIMCO owes to its Clients, will not be tolerated. Employees must always conduct their personal trading activities lawfully, properly and responsibly. </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:ARIAL">Except as noted below, PIMCO employees shall disgorge any gains that result from executing a transaction in a Financial Instrument that requires
preclearance under the Code (as provided in Section III.C.) and then </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<P STYLE="line-height:8.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000;width:26%">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:8pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="1%" VALIGN="top" ALIGN="left"><FONT COLOR="#3f595b"><SUP STYLE="font-size:85%; vertical-align:top">1</SUP>&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT COLOR="#3f595b">PIMCO&#146;s supervised persons also include certain employees of PIMCO Investments, PIMCO&#146;s affiliated broker-dealer. Additionally, employees of certain
<FONT STYLE="white-space:nowrap">non-U.S.</FONT> affiliates of PIMCO are known as &#147;Associated Persons&#148;. Associated Persons are subject to the respective Code of Ethics of the affiliate with whom they are employed. </FONT></TD></TR></TABLE>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:8pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="1%" VALIGN="top" ALIGN="left"><FONT COLOR="#3f595b"><SUP STYLE="font-size:85%; vertical-align:top">2</SUP>&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:ARIAL; font-size:8pt"><FONT COLOR="#3f595b">Capitalized terms are defined in Appendix I.<I> </I>
</FONT></P></TD></TR></TABLE>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:ARIAL" ALIGN="right"><FONT COLOR="#0071ce">CODE OF
ETHICS&nbsp;|&nbsp;JULY 2017&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3 </FONT></P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:ARIAL">
affirmatively executing an opposite way transaction (buying and then selling, or selling and then buying at a lower price) in the same Financial Instrument within 30 calendar days. This applies
across all brokerage accounts. </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:ARIAL">For purposes of the 30 calendar day calculation, the date of the transaction is considered day one. Please note,
profits are calculated differently under this rule than they would be for tax purposes. Also, it is important to know that transaction costs and potential tax liabilities will NOT be offset against the amount that must be surrendered under this
rule.<SUP STYLE="font-size:85%; vertical-align:top">3</SUP> </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:ARIAL">Profits from such trades must be disgorged in a manner acceptable to a Compliance
Officer. Any disgorgement amount shall be calculated by the Compliance Officer or their designee(s), the calculation of which shall be binding. </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:ARIAL">Note, an option transaction containing an initial expiration date within the 30 calendar days, as described above, of purchase or sale is considered to
be a short-term trading strategy and is subject to the 30 Calendar Day Rule. </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:ARIAL">The following transactions are excluded from the <B>30 Calendar Day
Rule</B>: </P> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">1.</TD>
<TD ALIGN="left" VALIGN="top">Transactions that are exempt from the preclearance and approval requirement as provided in Sections III.C.2. and III.C.3. of the Code (i.e., Exempt Reportable Transactions and Exempt Transactions as defined below). For
purposes of this exclusion, although Portfolio Persons must observe the preclearance requirements specified in Section II.C.2.a., Portfolio Persons&#146; transactions in direct obligations of the U.S. Government, or any other national government are
excluded from the 30 Calendar Day Rule. </TD></TR></TABLE> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">2.</TD>
<TD ALIGN="left" VALIGN="top">Transactions that &#145;roll forward&#146; options or Futures; that is, the simultaneous closing and opening of options or Futures solely in order to extend the expiration or maturity of the initial position to the
month immediately following such expiration or maturity, but that otherwise maintains the economic features (e.g., size and strike price) of the position (when a transaction is rolled forward the transaction date for purposes of calculating
compliance with the 30 Calendar Day Rule will be the date of the initial purchase and not the date of the roll forward transaction). </TD></TR></TABLE>
<P STYLE="margin-top:10pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:ARIAL"><B>Note:</B> Notwithstanding the exclusion from the 30 Calendar Day Rule, transactions that roll forward options or Futures positions are still subject
to the applicable preclearance requirements of the Code. </P> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">3.</TD>
<TD ALIGN="left" VALIGN="top">Transactions in cash-equivalent ETFs provided permission is obtained from Compliance in advance. </TD></TR></TABLE> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">4.</TD>
<TD ALIGN="left" VALIGN="top">Transactions in which the gains to be disgorged pursuant to the 30 Calendar Day Rule amount to less than $25. </TD></TR></TABLE> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" ALIGN="center">


<TR>
<TD WIDTH="100%"></TD></TR>


<TR STYLE="page-break-inside:avoid ; font-family:ARIAL; font-size:10pt">
<TD VALIGN="top" STYLE="BORDER:1px solid #000000; padding-left:8pt; padding-right:2pt" BGCOLOR="#0071ce"> <P STYLE="font-size:8pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:0.50em; font-size:10pt; font-family:ARIAL"><FONT COLOR="#FFFFFF"><B>Prior to transacting, all Employees must represent in their preclearance request that the transaction is not in
contravention of the 30 Calendar Day Rule.</B></FONT></P> <P STYLE="font-size:10pt; margin-top:0pt; margin-bottom:1pt">&nbsp;</P></TD></TR>
</TABLE> <P STYLE="font-size:20pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT COLOR="#0071ce"><B>C.</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT COLOR="#0071ce"><B>Preclearance and Approval of Personal Securities Transactions </B></FONT></TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:ARIAL">You
must <B><I>preclear and receive prior approval</I></B> for all your Personal Securities Transactions unless your Personal Securities Transaction is subject to an exemption under this Code. </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:ARIAL">The Preclearance and Approval Process described below applies to all Employees and their Immediate Family Members. </P>
<P STYLE="font-size:36pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<P STYLE="line-height:8.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000;width:26%">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:8pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="1%" VALIGN="top" ALIGN="left"><FONT COLOR="#3f595b"><SUP STYLE="font-size:85%; vertical-align:top">3</SUP>&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT COLOR="#3f595b">For example, if a purchase is considered to be made on day one, calendar day 31 is the first day a sale of the same Financial Instrument may be made without having to disgorge any gains (assuming
there were no additional purchases of the same Financial Instrument during that time period). You may sell the same Financial Instrument at a loss within 30 calendar days (subject to preclearance approval, where applicable).
</FONT></TD></TR></TABLE>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:ARIAL" ALIGN="right"><FONT COLOR="#0071ce">CODE OF
ETHICS&nbsp;|&nbsp;JULY 2017&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4 </FONT></P>


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<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">1.</TD>
<TD ALIGN="left" VALIGN="top"><B>Preclearance and Approval Process</B> </TD></TR></TABLE> <P STYLE="margin-top:10pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:ARIAL">Preclearance and approval of Personal Securities Transactions
helps PIMCO prevent certain investments that may conflict with Client trading activities. Except as provided in Sections III.C.2. and III.C.3. below, you must preclear and receive prior approval for all Personal Securities Transactions by following
the <FONT STYLE="white-space:nowrap">two-step</FONT> preclearance and approval process:<SUP STYLE="font-size:85%; vertical-align:top">4</SUP> </P> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR>
<TD WIDTH="99%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD></TD></TR>


<TR STYLE="page-break-inside:avoid ; font-family:ARIAL; font-size:10pt">
<TD VALIGN="top" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000; BORDER-BOTTOM:1px solid #000000; padding-left:8pt"> <P STYLE="font-size:6pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:ARIAL"><B>The Preclearance and Approval Process is a <FONT STYLE="white-space:nowrap">two-step</FONT> process:</B></P>
<P STYLE="font-size:12pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:ARIAL"><B>Step 1:</B> To preclear a trade, you must input the details of the proposed trade into the
TradeClear system (accessible through the PIMCO Intranet) and follow the instructions. See Sections III.C.2. and III.C.3. for certain transactions that do not require preclearance and approval.</P>
<P STYLE="font-size:10pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:ARIAL"><B>Step 2:</B> You will receive notification as to whether your proposed trade is approved or
denied. If your proposed trade is approved, the approval is valid for the day on which the approval was granted and the following business day, unless you are notified differently by a Compliance Officer. If you do not execute your transaction
within the required timeframe or if the information in your preclearance request changes, you must repeat the preclearance process prior to undertaking the transaction.</P> <P STYLE="font-size:10pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:ARIAL">Note: If you place a Good-until-Canceled (&#147;GTC&#148;) or Limit Order and the order is not fully executed or filled by the end of the following business day
(midnight local time), you must repeat the preclearance process.</P> <P STYLE="font-size:10pt; margin-top:0pt; margin-bottom:1pt">&nbsp;</P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-TOP:1px solid #000000; BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="top" STYLE="BORDER-TOP:1px solid #000000; BORDER-RIGHT:1px solid #000000; BORDER-BOTTOM:1px solid #000000; padding-right:2pt">&nbsp;</TD></TR>
</TABLE> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">2.</TD>
<TD ALIGN="left" VALIGN="top"><B>Transactions Excluded from the Preclearance and Approval Requirement (but still subject to the Reporting Requirements)</B> </TD></TR></TABLE>
<P STYLE="margin-top:10pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:ARIAL">Except as otherwise provided below, you are not required to preclear and receive prior approval for the following Personal Securities Transactions,
although you are still responsible for complying with the reporting requirements of Section V. of this Code for these transactions (each, an &#147;Exempt Reportable Transaction&#148;): </P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="13%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">a.</TD>
<TD ALIGN="left" VALIGN="top">Purchases<SUP STYLE="font-size:85%; vertical-align:top">5</SUP> or sales of direct obligations of the U.S. Government or any other national government, <B>however, if you are a Portfolio Person, as defined in the Code,
you are required to preclear and receive prior approval for purchases and sales of direct obligations of the U.S. Government or any other national government</B> except as set forth in Section III.C.3.f. below; </TD></TR></TABLE>
<P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="13%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">b.</TD>
<TD ALIGN="left" VALIGN="top">The acquisition or disposition of a Financial Instrument as the result of a stock dividend, stock split, reverse stock split, merger, consolidation, <FONT STYLE="white-space:nowrap">spin-off</FONT> or other similar
corporate distribution or reorganization applicable to such holders of a class of Financial Instrument or, with respect to Financial Instruments except Futures, assignment or call pursuant to an options contract; </TD></TR></TABLE>
<P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="13%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">c.</TD>
<TD ALIGN="left" VALIGN="top">Transactions in <FONT STYLE="white-space:nowrap">open-end</FONT> mutual funds or interval funds (including those held through a variable insurance product account) managed or
<FONT STYLE="white-space:nowrap">sub-advised</FONT> by PIMCO or an Allianz affiliated entity (i.e., funds managed or <FONT STYLE="white-space:nowrap">sub-advised</FONT> by PIMCO or an Allianz affiliated entity must be reported but do not need to be
precleared). The Compliance department has access to information on your holdings in PIMCO private funds and <FONT STYLE="white-space:nowrap">open-end</FONT> mutual funds in your PIMCO/Allianz 401(k). However, your PCRA, deferred compensation plans,
Fund Invest and Allianz Employee Stock Purchase Plan must be reported to Compliance; </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<P STYLE="line-height:8.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000;width:26%">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:8pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="1%" VALIGN="top" ALIGN="left"><FONT COLOR="#3f595b"><SUP STYLE="font-size:85%; vertical-align:top">4</SUP>&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT COLOR="#3f595b">Personal Real Estate Investment Transactions (as defined in Appendix II) that constitute Private Placements are Personal Securities Transactions that are subject to, and must be <FONT
STYLE="white-space:nowrap">pre-cleared</FONT> and receive prior approval in accordance with this Section III.C of the Code. </FONT></TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:8pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="1%" VALIGN="top" ALIGN="left"><FONT COLOR="#3f595b"><SUP STYLE="font-size:85%; vertical-align:top">5</SUP>&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT COLOR="#3f595b">See Section III.C.3.f. for certain additional exemptions. </FONT></TD></TR></TABLE>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:ARIAL" ALIGN="right"><FONT COLOR="#0071ce">CODE OF
ETHICS&nbsp;|&nbsp;JULY 2017&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5 </FONT></P>


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<TD WIDTH="13%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">d.</TD>
<TD ALIGN="left" VALIGN="top">Transactions in any <FONT STYLE="white-space:nowrap">Non-Discretionary</FONT> Account (i)&nbsp;over which neither you nor an Immediate Family Member exercises investment discretion; (ii)&nbsp;have no notice of specific
transactions prior to execution; or (iii)&nbsp;otherwise have no direct or indirect influence or control. You must still report the account, including the name of any broker, dealer or bank with which you have an account. You must contact the
Compliance Officer if you have this type of account; </TD></TR></TABLE> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="13%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">e.</TD>
<TD ALIGN="left" VALIGN="top">Transactions pursuant to an Automatic Investment Plan, except that transactions overriding the Automatic Investment Plan&#146;s predetermined schedule and allocation must be precleared and approved </TD></TR></TABLE>
<P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="13%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">f.</TD>
<TD ALIGN="left" VALIGN="top">Transactions in accounts held on automated asset allocation platforms over which neither you nor an Immediate Family Member exercises any investment discretion, including with respect to the Financial Instruments
involved in such transactions and the allocation percentages utilized within the asset allocation platform. You must contact the Compliance Officer if you have this type of account. </TD></TR></TABLE>
<P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR>
<TD WIDTH="100%"></TD></TR>


<TR STYLE="page-break-inside:avoid ; font-family:ARIAL; font-size:10pt">
<TD VALIGN="top" STYLE="BORDER:1px solid #000000; padding-left:8pt; padding-right:2pt" BGCOLOR="#0071ce"> <P STYLE="font-size:8pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:0.50em; font-size:10pt; font-family:ARIAL"><FONT COLOR="#FFFFFF"><B>It is important to remember that transactions in <FONT STYLE="white-space:nowrap">Closed-End</FONT> Funds and ETFs are
subject to the preclearance and blackout period requirements.</B></FONT></P> <P STYLE="font-size:10pt; margin-top:0pt; margin-bottom:1pt">&nbsp;</P></TD></TR>
</TABLE> <P STYLE="font-size:20pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">3.</TD>
<TD ALIGN="left" VALIGN="top"><B>Transactions Excluded from the Preclearance and Approval Requirement and </B><B>Reporting Requirements</B> </TD></TR></TABLE>
<P STYLE="margin-top:10pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:ARIAL">All Personal Securities Transactions by Employees must be reported under the Code with a few limited exceptions set forth below. The following Personal
Securities Transactions are exempt from the reporting requirements provided in Section V. of the Code (each, an &#147;Exempt Transaction&#148;): </P> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="13%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">a.</TD>
<TD ALIGN="left" VALIGN="top">Purchases or sales of bank certificates of deposit (&#147;CDs&#148;), bankers acceptances, commercial paper and other high quality short-term debt instruments (with a maturity of less than one year), including
repurchase agreements; </TD></TR></TABLE> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="13%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">b.</TD>
<TD ALIGN="left" VALIGN="top">Purchases which are made by reinvesting dividends (cash or <FONT STYLE="white-space:nowrap">in-kind)</FONT> on a Financial Instrument including reinvestments pursuant to an Automatic Investment Plan; </TD></TR></TABLE>
<P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="13%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">c.</TD>
<TD ALIGN="left" VALIGN="top">Purchases/sales of physical currencies or physical commodities not for investment purposes; </TD></TR></TABLE> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="13%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">d.</TD>
<TD ALIGN="left" VALIGN="top">Purchases or sales of <FONT STYLE="white-space:nowrap">open-end</FONT> mutual funds or interval funds (including those held through a variable insurance product direct account) not managed or <FONT
STYLE="white-space:nowrap">sub-advised</FONT> by PIMCO or an Allianz affiliated entity (i.e., open&#150;end mutual funds and interval funds are not required to be reported unless the fund is managed or
<FONT STYLE="white-space:nowrap">sub-advised</FONT> by PIMCO or an Allianz affiliated entity). Transactions in <FONT STYLE="white-space:nowrap">open-end</FONT> funds and interval funds do not need to be precleared; </TD></TR></TABLE>
<P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="13%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">e.</TD>
<TD ALIGN="left" VALIGN="top">Purchases or sales of unit investment trusts that are invested exclusively in one or more <FONT STYLE="white-space:nowrap">open-end</FONT> mutual funds that are not advised or
<FONT STYLE="white-space:nowrap">sub-advised</FONT> by PIMCO or an Allianz affiliated entity; and </TD></TR></TABLE> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="13%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">f.</TD>
<TD ALIGN="left" VALIGN="top">Purchases of direct obligations of the U.S. Government where such transactions are effected via <FONT STYLE="white-space:nowrap">non-competitive</FONT> bid through the U.S. Department of the Treasury&#146;s
TreasuryDirect system. </TD></TR></TABLE>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:ARIAL" ALIGN="right"><FONT COLOR="#0071ce">CODE OF
ETHICS&nbsp;|&nbsp;JULY 2017&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6 </FONT></P>


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<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT COLOR="#0071ce"><B>D.</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT COLOR="#0071ce"><B>Additional Requirements Applicable to Portfolio Persons </B></FONT></TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:ARIAL">If you are
a &#147;Portfolio Person&#148;<SUP STYLE="font-size:85%; vertical-align:top">6</SUP> with respect to a Client transaction, you are subject to the blackout periods listed below. Note that transactions that do not require preclearance under Sections
III.C.2. and III.C.3. of the Code are not subject to these blackout periods. Regardless of whether you are required to preclear your trade, you must not take inappropriate advantage of your position as a Portfolio Person in violation of the Code.
</P> <P STYLE="font-size:8pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">1.</TD>
<TD ALIGN="left" VALIGN="top"><B>Purchases and sales prior to, and including, seven calendar days prior to a Client trade</B> </TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:ARIAL">A
Portfolio Person may not transact in a Financial Instrument prior to, and including, seven calendar days before transacting in the same Financial Instrument or a Related Financial Instrument for a Client. Similarly, a Portfolio Person may not
transact in a Financial Instrument prior to, and including, seven calendar days if the Portfolio Person knows of another Portfolio Person&#146;s intention to transact in the same Financial Instrument for a Client. Thus, if you personally transact
within seven calendar days (inclusive) of a Client trade in the same or Related Financial Instrument, your personal securities transaction will be considered a violation of the Code of Ethics unless the client trade was directed by someone else
without your knowledge or you obtain prior approval from Compliance. </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; margin-left:17%; font-size:10pt; font-family:ARIAL"><B><I>Specific conditions for research analysts </I></B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:ARIAL">A research analyst may not transact in the same Financial Instrument, any other Financial Instrument issued by the same issuer or a Related Financial
Instrument that such research analyst is analyzing for a Client (whether such analysis was requested by another person or was undertaken on the research analyst&#146;s own initiative). Such prohibition remains in effect until the research analyst is
notified in writing that the Financial Instrument has been selected or rejected for purchase or sale for a Client account or until the research analyst obtains permission to transact in the same Financial Instrument or a Related Financial Instrument
from a senior supervisor and a Compliance Officer. </P> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">2.</TD>
<TD ALIGN="left" VALIGN="top"><B>Purchases and sales within three calendar days following a Client trade</B> </TD></TR></TABLE> <P STYLE="margin-top:10pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:ARIAL">A Portfolio Person may
not transact in a Financial Instrument within three calendar days after (i)&nbsp;transacting in the same Financial Instrument or a Related Financial Instrument for a Client; or (ii)&nbsp;a Client&#146;s transaction in the same Financial Instrument
or a Related Financial Instrument if the Portfolio Person knows that another Portfolio Person has transacted in such Financial Instrument or a Related Financial Instrument for a Client. </P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">3.</TD>
<TD ALIGN="left" VALIGN="top"><B>Specific provisions for Real Estate Portfolio Persons with respect to PIMCO advised private funds that invest in real estate<SUP STYLE="font-size:85%; vertical-align:top">7</SUP></B><B><I> </I></B><B></B>
</TD></TR></TABLE> <P STYLE="margin-top:10pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:ARIAL">Real Estate Portfolio Persons must report Personal Real Estate Investment
Transactions<SUP STYLE="font-size:85%; vertical-align:top">8</SUP> and <FONT STYLE="white-space:nowrap">pre-clear</FONT> and receive prior approval of certain Personal Real Estate Investment Transactions. </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:ARIAL">Please refer to Appendix II for a discussion of the <FONT STYLE="white-space:nowrap">pre-clearance</FONT> and reporting requirements for Personal Real
Estate Investment Transactions. </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:ARIAL"><I>Please note that Personal Real Estate Investment Transactions that constitute Private Placements are Personal
Securities Transactions and must be <FONT STYLE="white-space:nowrap">pre-cleared</FONT> and receive prior approval in accordance with Section III.C of the Code. </I></P> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR>
<TD WIDTH="100%"></TD></TR>


<TR BGCOLOR="#0071ce" STYLE="page-break-inside:avoid ; font-family:ARIAL; font-size:10pt">
<TD VALIGN="top" STYLE="BORDER:1px solid #000000; padding-left:8pt; padding-right:2pt"> <P STYLE="font-size:6pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:ARIAL"><FONT
 COLOR="#ffffff"><B><FONT COLOR="#ffffff">Prior to transacting, Portfolio Persons must represent in their preclearance request that they are not aware of any pending trades or proposed trades in the next seven calendar days in the same Financial
Instrument or a Related Financial Instrument for any Client. Please consider the timing of your personal trades carefully.</FONT></B></FONT></P> <P STYLE="font-size:10pt; margin-top:0pt; margin-bottom:1pt">&nbsp;</P></TD></TR>
</TABLE> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P> <P STYLE="line-height:8.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000;width:26%">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:8pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="1%" VALIGN="top" ALIGN="left"><FONT COLOR="#3f595b"><SUP STYLE="font-size:85%; vertical-align:top">6</SUP>&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT COLOR="#3f595b">See Appendix I for the definition of &#147;Portfolio Person.&#148; Generally, a Portfolio Person with respect to a Client trade includes the generalist portfolio manager for the Client account, the
specialist portfolio manager or trading assistant with respect to the transactions in that account attributable to that specialist or trading assistant, any research analyst that played a role in researching or recommending a particular Financial
Instrument, and members of portfolio risk management. </FONT></TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:8pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="1%" VALIGN="top" ALIGN="left"><FONT COLOR="#3f595b"><SUP STYLE="font-size:85%; vertical-align:top">7</SUP>&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT COLOR="#3f595b">For purposes of this clause 3 and Appendix II, the term Financial Instrument as it applies to Personal Securities Transactions of Portfolio Persons shall include Real Estate Investment
Transactions. </FONT></TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:8pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="1%" VALIGN="top" ALIGN="left"><FONT COLOR="#3f595b"><SUP STYLE="font-size:85%; vertical-align:top">8</SUP>&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT COLOR="#3f595b">See Appendix II for definition of Real Estate Portfolio Person and Personal Real Estate Investment Transactions. </FONT></TD></TR></TABLE>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:ARIAL" ALIGN="right"><FONT COLOR="#0071ce">CODE OF
ETHICS&nbsp;|&nbsp;JULY 2017&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7 </FONT></P>


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<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">


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<TR style = "page-break-inside:avoid">
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT COLOR="#0071ce"><B>E.</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT COLOR="#0071ce"><B>Provisions that May Restrict Your Trading </B></FONT></TD></TR></TABLE> <P STYLE="margin-top:10pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:ARIAL">If your Personal
Securities Transaction falls within one of the following categories, it will generally be denied by the Compliance Officer. It is your responsibility to initially determine if any of the following categories apply to your situation or transaction:
</P> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">1.</TD>
<TD ALIGN="left" VALIGN="top"><B>Pending Orders</B> </TD></TR></TABLE> <P STYLE="margin-top:10pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:ARIAL">If the gross aggregate market value exposure of your transaction in the Financial
Instrument requiring preclearance over a 30 calendar day period across all your Personal Brokerage Accounts exceeds $25,000 and (i)&nbsp;the Financial Instrument or a Related Financial Instrument has been purchased or sold by a Client on that day;
or (ii)&nbsp;there is a pending Client order in the Financial Instrument or a Related Financial Instrument then you CANNOT trade the Financial Instrument or any Related Financial Instrument on the same day and your preclearance request will be
denied. This prohibition is in addition to any other requirements or prohibitions in this Code that may be applicable (e.g., under &#147;III.D. Additional Requirements Applicable to Portfolio Persons&#148;). </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:ARIAL">As a general matter, transactions up to $250,000 per day in common stock publicly issued by an issuer, and options thereon, included in the
Standard&nbsp;&amp; Poor&#146;s 500 Index (&#147;S&amp;P 500<SUP STYLE="font-size:85%; vertical-align:top">&reg;</SUP> Index&#148;) will be permitted (subject to any other applicable requirements of the Code, such as the preclearance and blackout
period requirements). Note, with respect to an option transaction, exposure is measured by the underlying notional value of the option. </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:ARIAL">Transactions that &#145;roll forward&#146; Futures contracts or Options on Futures contracts may be approved.&nbsp;Such a roll forward is considered to
be the simultaneous closing and opening of Futures or Options on Futures solely to extend the expiration or maturity of the previous position to the next available contract period immediately following such expiration or maturity, but that otherwise
maintains the same economic features (e.g., size and strike price) of the position. </P> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">2.</TD>
<TD ALIGN="left" VALIGN="top"><B>Initial Public Offerings, Private Placements and Investments in Hedge Funds</B> </TD></TR></TABLE> <P STYLE="margin-top:10pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:ARIAL">As a general matter,
you should expect that most preclearance requests involving initial public offerings (except for fixed-income, preferred, business development companies, registered investment companies, commodity pools and convertible securities offerings) will be
denied. If your proposed transaction is an initial public offering, a private placement, or an investment in a hedge fund, the Compliance Officer will determine whether the investment opportunity should be reserved for Clients. </P>
<P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">3.</TD>
<TD ALIGN="left" VALIGN="top"><B>Allianz SE Investments</B> </TD></TR></TABLE> <P STYLE="margin-top:10pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:ARIAL">You may not trade in shares of Allianz SE during any designated blackout
period. In general, the trading windows end six weeks prior to the release of Allianz SE annual financial statements and two weeks prior to the release of Allianz SE quarterly results. This restriction applies to the exercise of cash-settled options
or any kind of rights granted under compensation or incentive programs that completely or in part refer to Allianz SE. Allianz SE blackout dates are communicated to employees and are posted on the employee trading center. A list of such blackout
periods is accessible through the PIMCO Intranet. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:ARIAL" ALIGN="right"><FONT COLOR="#0071ce">CODE OF
ETHICS&nbsp;|&nbsp;JULY 2017&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8 </FONT></P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">


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<TR style = "page-break-inside:avoid">
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">4.</TD>
<TD ALIGN="left" VALIGN="top"><B>Blackout Period in any Closed End Fund Advised or <FONT STYLE="white-space:nowrap">Sub-Advised</FONT> by PIMCO</B> </TD></TR></TABLE>
<P STYLE="margin-top:10pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:ARIAL">You may not trade any closed end fund advised or <FONT STYLE="white-space:nowrap">sub-advised</FONT> by PIMCO during a designated blackout period. A
list of such blackout periods is accessible through the PIMCO Intranet. </P> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">5.</TD>
<TD ALIGN="left" VALIGN="top"><B>Trade Restricted Securities List </B> </TD></TR></TABLE> <P STYLE="margin-top:10pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:ARIAL">The Legal and Compliance department maintains and periodically
updates the Trade Restricted Securities List that contains certain securities that may not be traded by Employees. The Trade Restricted Securities List is not distributed to employees, but requests to purchase or sell any security on the Trade
Restricted Securities List will be denied. </P> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">6.</TD>
<TD ALIGN="left" VALIGN="top"><B>Section</B><B><I></I></B><B>&nbsp;16 Holding Periods</B> </TD></TR></TABLE> <P STYLE="margin-top:10pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:ARIAL">If you are a reporting person under
Section&nbsp;16 of the Securities Exchange Act of 1934, with respect to any closed end fund advised or subadvised by PIMCO, you are subject to a six month holding period and you must make certain filings with the SEC. It is your responsibility to
determine if you are subject to Section&nbsp;16 requirements and to arrange for appropriate filings. Please consult a Compliance Officer for more information. </P> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT COLOR="#0071ce"><B>F.</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT COLOR="#0071ce"><B>Excessive Trading and Market Timing of Mutual Fund Shares. </B></FONT></TD></TR></TABLE> <P STYLE="margin-top:10pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:ARIAL">The
issue of excessive trading and market timing by mutual fund shareholders is serious and not unique to PIMCO. You are subject to the terms and restrictions of an <FONT STYLE="white-space:nowrap">open-end</FONT> mutual fund&#146;s prospectus,
including restrictions such fund may impose on excessive trading. You may not engage in trading of shares of an <FONT STYLE="white-space:nowrap">open-end</FONT> mutual fund that is inconsistent with the prospectus of that fund. </P>
<P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT COLOR="#0071ce"><B>G.</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT COLOR="#0071ce"><B>Your Actions are Subject to Review by a Compliance Officer and Your Supervisor </B></FONT></TD></TR></TABLE>
<P STYLE="margin-top:10pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:ARIAL">The Compliance Officer may undertake such investigation as he or she considers necessary to determine if your proposed trade complies with this Code,
including post-trade monitoring. The Compliance Officer may impose measures intended to avoid potential conflicts of interest or to address any trading that requires additional scrutiny. </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:ARIAL">In addition to the Compliance Officer, your supervisor may, unless restricted by relevant regulations, review your personal trading activity on a
periodic or more frequent basis. This individual will work with the Compliance Officer on any such reviews. </P> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT COLOR="#0071ce"><B>H.</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT COLOR="#0071ce"><B>Consequences for Violations of this Code </B></FONT></TD></TR></TABLE> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">1.</TD>
<TD ALIGN="left" VALIGN="top">If determined appropriate by the General Counsel or Compliance Officer you may be subject to remedial actions (a)&nbsp;if you violate this Code; or (b)<I></I>&nbsp;to protect the integrity and reputation of PIMCO even
in the absence of a proven violation. Such remedial actions may include, but are not limited to, full or partial disgorgement of the profits you earned on an investment transaction, imposition of a fine, censure, demotion, suspension or dismissal,
or any other sanction or remedial action required or permitted by law, rule or regulation. As part of any remedial action, you may be required to reverse an investment transaction and forfeit any profit or to absorb any loss from the transaction.
</TD></TR></TABLE> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">2.</TD>
<TD ALIGN="left" VALIGN="top">PIMCO&#146;s General Counsel or Compliance Officer shall have the authority to determine whether you have violated this Code and, if so, to impose the remedial actions they consider appropriate or required by law, rule
or regulation. In making their determination, the General Counsel or Compliance Officer may consider, among other factors, the gravity of your violation, the frequency of your violations, whether any violation caused harm or the potential of harm to
a Client, your efforts to cooperate with their investigation, and your efforts to correct any conduct that led to a violation. </TD></TR></TABLE> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT COLOR="#0071ce"><B>IV.</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT COLOR="#0071ce"><B>YOUR ONGOING OBLIGATIONS UNDER THIS CODE </B></FONT></TD></TR></TABLE> <P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:ARIAL">This Code imposes certain ongoing
obligations on you. If you have any questions regarding these obligations please contact the Compliance Officer. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:ARIAL" ALIGN="right"><FONT COLOR="#0071ce">CODE OF
ETHICS&nbsp;|&nbsp;JULY 2017&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9 </FONT></P>


<p Style='page-break-before:always'>
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<TR style = "page-break-inside:avoid">
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT COLOR="#0071ce"><B>A.</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT COLOR="#0071ce"><B>Insider Trading </B></FONT></TD></TR></TABLE> <P STYLE="margin-top:10pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:ARIAL">The fiduciary principles of this Code and
Securities and Commodities Laws prohibit you from trading based on material, <FONT STYLE="white-space:nowrap">non-public</FONT> information (&#147;MNPI&#148;) received from any source or communicating this information to others.<SUP
STYLE="font-size:85%; vertical-align:top">9</SUP> If you believe you may have access to material, <FONT STYLE="white-space:nowrap">non-public</FONT> information or are unsure about whether information is material or
<FONT STYLE="white-space:nowrap">non-public,</FONT> please consult a Compliance Officer and the PIMCO MNPI Policy. Any violation of PIMCO&#146;s MNPI Policy may result in penalties that could include termination of employment with PIMCO. </P>
<P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT COLOR="#0071ce"><B>B.</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT COLOR="#0071ce"><B>Compliance with Securities Laws </B></FONT></TD></TR></TABLE> <P STYLE="margin-top:10pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:ARIAL">You must comply with all applicable
Securities and Commodities Laws. </P> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT COLOR="#0071ce"><B>C.</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT COLOR="#0071ce"><B>Duty to Report Violations of this Code </B></FONT></TD></TR></TABLE> <P STYLE="margin-top:10pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:ARIAL">You are required to promptly
report any violation of this Code of which you become aware, whether your own or another Employee&#146;s. Reports of violations other than your own may be made anonymously and confidentially to the Compliance Officer. </P>
<P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT COLOR="#0071ce"><B>D.</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT COLOR="#0071ce"><B>Right to Communicate Directly with Governmental, Regulatory or Self-Regulatory Bodies </B></FONT></TD></TR></TABLE>
<P STYLE="margin-top:10pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:ARIAL">This Code will not be interpreted or applied in any manner that would violate any PIMCO employee&#146;s legal rights as an employee under applicable
law. For example, nothing in this Code or Appendices attached hereto prohibits or in any way restricts any PIMCO employee from reporting possible violations of law or regulation to, otherwise communicating directly with, cooperating with or
providing information to any governmental or regulatory body or any self-regulatory organization or making other disclosures that are protected under applicable law or regulations of the Securities and Exchange Commission or any other governmental
or regulatory body or self-regulatory organization. A PIMCO employee does not need prior PIMCO authorization before taking any such action and a PIMCO employee is not required to inform PIMCO if he or she chooses to take such action. </P>
<P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT COLOR="#0071ce"><B>V.</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT COLOR="#0071ce"><B>YOUR REPORTING REQUIREMENTS </B></FONT></TD></TR></TABLE> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT COLOR="#0071ce"><B>A.</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT COLOR="#0071ce"><B><FONT STYLE="white-space:nowrap">On-Line</FONT> Certification of Receipt and Quarterly Compliance Certification </B></FONT></TD></TR></TABLE>
<P STYLE="margin-top:10pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:ARIAL">You will be required to certify your receipt of this Code. On a quarterly basis you must certify that any personal investments effected during the
quarter were done in compliance with this Code. You will also be required to certify your ongoing compliance with this Code on a quarterly basis. Required certifications must be completed within 30 calendar days following the end of the quarter.
</P> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT COLOR="#0071ce"><B>B.</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT COLOR="#0071ce"><B>Reports of Securities Holdings </B></FONT></TD></TR></TABLE> <P STYLE="margin-top:10pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:ARIAL">You and your Immediate Family
Members must report all your Personal Brokerage Accounts and all transactions in your Personal Brokerage Accounts unless the transaction is an Exempt Transaction. You must agree to allow your broker-dealer to provide the Compliance Officer with
electronic reports of your Personal Brokerage Accounts and transactions and to allow the Compliance department to access all Personal Brokerage Account information. You will also be required to certify that you have reported all of your Personal
Brokerage Accounts to the Compliance Officer on a quarterly basis. Required certifications must be completed within 30 calendar days following the end of the quarter. </P> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">1.</TD>
<TD ALIGN="left" VALIGN="top"><B>Approved Brokers</B> </TD></TR></TABLE> <P STYLE="margin-top:10pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:ARIAL">You and your Immediate Family Members must maintain your Personal Brokerage
Accounts with an Approved Broker. The list of Approved Brokers is accessible through the PIMCO Intranet. </P> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:8pt; font-family:ARIAL">&nbsp;&nbsp;</P> <P STYLE="line-height:8.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000;width:26%">&nbsp;</P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:ARIAL"><FONT COLOR="#3f595b"><SUP STYLE="font-size:85%; vertical-align:top">9</SUP> As described in Section III.C.2, purchases or sales of
<FONT STYLE="white-space:nowrap">open-end</FONT> mutual funds and interval funds managed or <FONT STYLE="white-space:nowrap">sub-advised</FONT> by PIMCO are exempt from the preclearance and approval process; however, the<B> </B>insider trading
prohibition described above applies to MNPI received with respect to an <FONT STYLE="white-space:nowrap">open-end</FONT> mutual fund or interval fund advised or <FONT STYLE="white-space:nowrap">sub-advised</FONT> by PIMCO or its affiliates. <FONT
STYLE="white-space:nowrap">Non-public</FONT> information regarding a mutual fund or interval fund is MNPI if such information could materially impact the fund&#146;s net asset value. </FONT></P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:ARIAL" ALIGN="right"><FONT COLOR="#0071ce">CODE OF
ETHICS&nbsp;|&nbsp;JULY 2017&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10 </FONT></P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:ARIAL">If you maintain a Personal Brokerage Account at a broker-dealer other than at an Approved Broker, you will
need to close those accounts or transfer them to an Approved Broker within a specified period of time as determined by the Compliance Officer. Upon opening a Personal Brokerage Account at an Approved Broker, Employees are required to disclose the
Personal Brokerage Account to the Compliance Officer. By maintaining your Personal Brokerage Account with one or more of the Approved Brokers, you and your Immediate Family Member&#146;s quarterly and annual trade summaries will be sent directly to
the Compliance department for review. </P> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">2.</TD>
<TD ALIGN="left" VALIGN="top"><B>Initial Holdings Report</B> </TD></TR></TABLE> <P STYLE="margin-top:10pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:ARIAL">Within ten calendar days of becoming an Employee, you must submit to the
Compliance Officer an Initial Report of Personal Brokerage Accounts and all holdings in securities except Exempt Transactions. Please contact the Compliance Officer if you have not already completed this Initial Report of Personal Brokerage
Accounts. </P> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">3.</TD>
<TD ALIGN="left" VALIGN="top"><B>Quarterly and Annual Holdings Report</B> </TD></TR></TABLE> <P STYLE="margin-top:10pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:ARIAL">If you maintain Personal Brokerage Accounts with
broker-dealers who are not on the list of Approved Brokers, please contact the Compliance Officer to arrange for providing quarterly and annual reports. </P> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">4.</TD>
<TD ALIGN="left" VALIGN="top"><B>Changes in Your Immediate Family Members</B> </TD></TR></TABLE> <P STYLE="margin-top:10pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:ARIAL">You must promptly notify a Compliance Officer of any
change to your Immediate Family Members (e.g., as a result of a marriage, divorce, legal separation, death, adoption, movement from your household or change in dependence status) that may affect the Personal Brokerage Accounts for which you have
reporting or other responsibilities. </P> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT COLOR="#0071ce"><B>VI.</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT COLOR="#0071ce"><B>COMPLIANCE DEPARTMENT RESPONSIBILITIES </B></FONT></TD></TR></TABLE> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT COLOR="#0071ce"><B>A.</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT COLOR="#0071ce"><B>Authority to Grant Waivers of the Requirements of this Code </B></FONT></TD></TR></TABLE> <P STYLE="margin-top:10pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:ARIAL">The
Compliance Officer, in consultation with PIMCO&#146;s General Counsel, has the authority to exempt any Employee or any personal investment transaction from any or all of the provisions of this Code if the Compliance Officer determines that such
exemption would not be against the interests of any Client and is consistent with applicable laws and regulations, including Rule <FONT STYLE="white-space:nowrap">204A-1</FONT> under the Advisers Act and Rule
<FONT STYLE="white-space:nowrap">17j-1</FONT> under the Investment Company Act. The Compliance Officer will prepare and file a written memorandum of any exemption granted, describing the circumstances and reasons for the exemption. </P>
<P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT COLOR="#0071ce"><B>B.</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT COLOR="#0071ce"><B>Annual Report to Boards of Funds that PIMCO Advises or <FONT STYLE="white-space:nowrap">Sub-Advises</FONT> </B></FONT></TD></TR></TABLE>
<P STYLE="margin-top:10pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:ARIAL">PIMCO will furnish a written report annually to the directors or trustees of each fund that PIMCO advises or
<FONT STYLE="white-space:nowrap">sub-advises.</FONT> Each report will describe any issues arising under this Code, or under procedures implemented by PIMCO to prevent violations of this Code, since PIMCO&#146;s last report, including, but not
limited to, information about material violations of this Code, procedures and sanctions imposed in response to such material violations, and certify that PIMCO has adopted procedures reasonably necessary to prevent its Employees from violating this
Code. </P> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT COLOR="#0071ce"><B>C.</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT COLOR="#0071ce"><B>Maintenance of Records </B></FONT></TD></TR></TABLE> <P STYLE="margin-top:10pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:ARIAL">The Compliance Officer will keep all records
maintained at PIMCO&#146;s primary office for at least two years and will otherwise keep in an easily accessible place for at least five years from the end of either the fiscal year in which the document was created or the last fiscal year during
which the document was effective or in force, </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:ARIAL" ALIGN="right"><FONT COLOR="#0071ce">CODE OF
ETHICS&nbsp;|&nbsp;JULY 2017&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11 </FONT></P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:ARIAL">
whichever is later. Such records include: copies of this Code and any amendments hereto, all Personal Brokerage Account statements and reports of Employees, a list of all Employees and persons
responsible for reviewing Employees reports, copies of all preclearance forms, records of violations and actions taken as a result of violations, and acknowledgments, certifications and other memoranda relating to the administration of this Code.
</P> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT COLOR="#0071ce"><B>VII.</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT COLOR="#0071ce"><B>ACTIVITIES OUTSIDE OF PIMCO </B></FONT></TD></TR></TABLE> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT COLOR="#0071ce"><B>A.</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT COLOR="#0071ce"><B>Approval of Activities Outside of PIMCO </B></FONT></TD></TR></TABLE> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">1.</TD>
<TD ALIGN="left" VALIGN="top">You may not engage in full-time or part-time service as an officer, director, partner, manager, member, proprietor, principal, consultant or employee of any Business Organization or
<FONT STYLE="white-space:nowrap">Non-Profit</FONT> Organization other than PIMCO, PIMCO Investments, the PIMCO Foundation, PIMCO Partners, or a fund for which PIMCO is an adviser (whether or not that business organization is publicly traded) unless
you have received the prior written approval from PIMCO&#146;s General Counsel or other designated person. </TD></TR></TABLE> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">2.</TD>
<TD ALIGN="left" VALIGN="top">Without prior written approval, you may not provide financial advice (e.g., through service on a finance or investment committee) to a private, educational or charitable organization (other than a trust or foundation
established by you or an Immediate Family Member) or enter into any agreement to be employed or to accept compensation in any form (e.g., in the form of commissions, salary, fees, bonuses, shares or contingent compensation) from any person or entity
other than PIMCO or one of its affiliates. </TD></TR></TABLE> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">3.</TD>
<TD ALIGN="left" VALIGN="top">Certain <FONT STYLE="white-space:nowrap">non-compensated</FONT> positions in which you would serve in a decision-making capacity (such as on a board of directors for a charity or
<FONT STYLE="white-space:nowrap">Non-Profit</FONT> Organization) must also have been reviewed or approved by PIMCO&#146;s General Counsel or other designated person. </TD></TR></TABLE>
<P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">4.</TD>
<TD ALIGN="left" VALIGN="top">PIMCO&#146;s General Counsel or other designated person may approve such an outside activity if he or she determines that your service or activities outside of PIMCO would not be inconsistent with the interests of PIMCO
and its Clients. Other factors that may be considered include any remuneration received or proposed to be received as part of the activity, whether the activity or expected time spent is consistent with your duties to PIMCO and its Clients, and any
other factors deemed relevant. PIMCO&#146;s General Counsel or other designated person may also stipulate that approval of your participation in the outside activity is subject to specified conditions. Requests to serve on the board of a publicly
traded entity will generally be denied. </TD></TR></TABLE> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">5.</TD>
<TD ALIGN="left" VALIGN="top">Regardless of the outcome of PIMCO&#146;s review of your participation in any proposed outside activity, you may not, directly or indirectly, publicly suggest, claim or imply that PIMCO is associated with or in any way
approves the activity. </TD></TR></TABLE> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="5%" VALIGN="top" ALIGN="left"><FONT COLOR="#0071ce"><B>VIII.</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT COLOR="#0071ce"><B>TEMPORARY EMPLOYEES </B></FONT></TD></TR></TABLE> <P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:ARIAL">Temporary Employees that are classified as Contingent Workforce
are considered &#147;Employees&#148; for purposes of this Code. The Compliance Officer may exempt such persons from any requirement hereunder if the Compliance Officer determines that such exemption would not have a material adverse effect on any
Client account. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:ARIAL" ALIGN="right"><FONT COLOR="#0071ce">CODE OF
ETHICS&nbsp;|&nbsp;JULY 2017&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12 </FONT></P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:ARIAL"><FONT COLOR="#0071ce"><B>APPENDIX I </B></FONT></P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:ARIAL"><FONT COLOR="#0071ce"><B>Glossary </B></FONT></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:ARIAL">The following definitions apply to the
capitalized terms used in this Code: </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:ARIAL"><B>Approved Broker</B> &#150; means a broker-dealer approved by the Compliance Officer. The list of Approved Brokers for each
PIMCO location is accessible through the PIMCO Intranet or can be obtained from the Compliance Officer. </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:ARIAL"><B>Associated Persons</B> &#150; means an employee of PIMCO
LLC&#146;s <FONT STYLE="white-space:nowrap">non-U.S.</FONT> affiliates. Associated Persons are subject to the respective Code of Ethics of the <FONT STYLE="white-space:nowrap">non-U.S.</FONT> affiliate with whom they are employed, which are, in
relevant part, substantially the same as this Code. Associated Persons are subject to the oversight and supervision of PIMCO LLC. </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:ARIAL"><B>Automatic Investment Plan</B>
&#150; means a program in which regular periodic purchases (or withdrawals) are made automatically in (or from) investment accounts in accordance with a predetermined schedule and allocation. An Automatic Investment Plan includes a dividend
reinvestment plan. </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:ARIAL"><B>Beneficial Interest</B> &#150; means when a person has or shares direct or indirect pecuniary interest in accounts or in reportable Financial
Instruments. Pecuniary interest means that a person has the ability to profit, directly or indirectly, or share in any profit from a transaction. Indirect pecuniary interest extends to, unless specifically excepted by a Compliance Officer, an
interest in a Financial Instrument held by: (1)&nbsp;a joint account to which you are a party; (2)&nbsp;a partnership in which you are a general partner; (3)&nbsp;a partnership in which you or an Immediate Family Member holds a controlling interest
and with respect to which Financial Instrument you or an Immediate Family Member has investment discretion; (4)&nbsp;a limited liability company in which you are a managing member; (5)&nbsp;a limited liability company in which you or an Immediate
Family Member holds a controlling interest and with respect to which Financial Instrument you or an Immediate Family Member has investment discretion; (6)&nbsp;a trust in which you or an Immediate Family Member has a vested interest or serves as a
trustee with investment discretion; (7)&nbsp;a closely-held corporation in which you or an Immediate Family Member holds a controlling interest and with respect to which Financial Instrument you or an Immediate Family Member has investment
discretion; or (8)&nbsp;any account (including retirement, pension, deferred compensation or similar account) in which you or an Immediate Family has a substantial economic interest. </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:ARIAL"><B>Business Organization</B> &#150; means an entity formed for the purpose of carrying on a commercial enterprise and/or to achieve certain commercial goals. It may
take the form a sole proprietorship, partnership, limited liability company, corporation or other structure. </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:ARIAL"><B>Client</B> &#150; means any person or entity to
which PIMCO provides investment advisory services. </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:ARIAL"><B>Contingent Workforce</B> &#150; means individuals subject to provisional work agreements which may include
temporary contract workers, independent contractors or independent consultants. </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:ARIAL"><B>Derivative</B> &#150; means (1)&nbsp;any Futures (as defined below); and
(2)&nbsp;a forward contract, a &#147;swap&#148;, a &#147;cap&#148;, a &#147;collar&#148;, a &#147;floor&#148; and an <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">over-the-counter</FONT></FONT> option (other than an option on a
foreign currency, an option on a basket of currencies, an option on a Security or an option on an index of Securities, which are included in the definition of &#147;Security&#148;). Questions regarding whether a particular instrument or transaction
is a Derivative for purposes of this policy should be directed to the Compliance Officer or his or her designee. </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:ARIAL"><B>Financial Instrument</B> &#150; means a
Security, Derivative, commodity or currency as investment. </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:ARIAL"><B>Futures</B> &#150; means a futures contract and an option on a futures contract traded on a U.S. or <FONT
STYLE="white-space:nowrap">non-U.S.</FONT> board of trade, such as the Chicago Board of Trade or the London International Financial Futures Exchange. </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:ARIAL"><B>Immediate
Family Member of an Employee</B> &#150; means: (1)&nbsp;any of the following persons sharing the same household with the Employee (which does not include temporary house guests): a person&#146;s child, stepchild, grandchild, parent, stepparent,
grandparent, spouse, sibling, <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">mother-in-law,</FONT></FONT> <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">father-in-law,</FONT></FONT> <FONT
STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">son-in-law,</FONT></FONT> <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">daughter-in-law,</FONT></FONT>
<FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">brother-in-law,</FONT></FONT> </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:ARIAL" ALIGN="right"><FONT COLOR="#0071ce">CODE OF
ETHICS&nbsp;|&nbsp;JULY 2017&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13 </FONT></P>


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<FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">sister-in-law,</FONT></FONT> legal guardian, adoptive relative, or domestic partner; (2)&nbsp;any person sharing the same
household with the Employee (which does not include temporary house guests) that holds an account in which the Employee is a joint owner or listed as a beneficiary; or (3)&nbsp;any person sharing the same household with the Employee in which the
Employee contributes to the maintenance of the household and material financial support of such person. </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:ARIAL"><B>Initial Public Offering</B> &#150; means an offering of
securities registered under the Securities Act of 1933, the issuer of which, immediately before the registration, was not subject to the reporting requirements of Sections 13 or 15(d) of the Securities Exchange Act of 1934. </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:ARIAL"><B><FONT STYLE="white-space:nowrap">Non-Discretionary</FONT> Account </B>&#150; means any account managed or held by a broker dealer, futures commission merchant, or
trustee as to which neither the Employee nor an Immediate Family Member: (1)&nbsp;exercises investment discretion; (2)&nbsp;receives notice of specific transactions prior to execution; or (3)&nbsp;has direct or indirect influence or control over the
account. </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:ARIAL"><B><FONT STYLE="white-space:nowrap">Non-Profit</FONT> Organization</B> &#150; means an organization (generally
<FONT STYLE="white-space:nowrap">tax-exempt)</FONT> that serves the public interest. In general, the purpose of this type of organization must be charitable, educational, scientific, religious or literary. A nonprofit organization is often dedicated
to furthering a particular social cause or advocating for a particular point of view. </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:ARIAL"><B>Personal Brokerage Account</B> &#150; means (1)&nbsp;any account
(including any custody account, safekeeping account, retirement account such as an IRA or 401(k) plan, and any account maintained by an entity that may act as a broker or principal) in which an Employee has any direct or indirect Beneficial
Interest, including Personal Brokerage Accounts and trusts for the benefit of such persons; and (2)&nbsp;any account maintained for a financial dependent. Thus, the term &#147;Personal Brokerage Accounts&#148; also includes, among others: </P>
<P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left">(i)</TD>
<TD ALIGN="left" VALIGN="top">Trusts for which the Employee acts as trustee, executor or custodian; </TD></TR></TABLE> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left">(ii)</TD>
<TD ALIGN="left" VALIGN="top">Accounts of or for the benefit of a person who receives financial support from the Employee; </TD></TR></TABLE> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left">(iii)</TD>
<TD ALIGN="left" VALIGN="top">Accounts of or for the benefit of an Immediate Family Member; and </TD></TR></TABLE> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left">(iv)</TD>
<TD ALIGN="left" VALIGN="top">Accounts in which the Employee is a joint owner or has trading authority. </TD></TR></TABLE> <P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:ARIAL">For the avoidance of doubt, the term
&#147;Personal Brokerage Account&#148; does not include an account on the U.S. Department of the Treasury&#146;s TreasuryDirect system, so long as the securities purchased through and/or held in such account may only be, or were, purchased through a
<FONT STYLE="white-space:nowrap">non-competitive</FONT> bid process. </P> <P STYLE="margin-top:14pt; margin-bottom:0pt; font-size:10pt; font-family:ARIAL"><B>Personal Securities Transaction</B> &#150; means transactions in Securities, Derivatives,
currencies for investment purposes and commodities for investment purposes. </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:ARIAL"><B>PIMCO</B> &#150; means &#147;Pacific Investment Management Company LLC&#148;. </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:ARIAL"><B>PIMCO Investments</B> &#150; means &#147;PIMCO Investments LLC&#148;. </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:ARIAL"><B>Portfolio Person</B> &#150; means an Employee, including a portfolio manager with respect to an account, who: (1)&nbsp;provides information or advice with respect to
the purchase or sale of a Financial Instrument, such as a research analyst; or (2)&nbsp;helps execute a portfolio manager&#146;s investment decisions. Members of Portfolio Risk Management are also considered to be Portfolio Persons. Generally, a
Portfolio Person with respect to a Client trade includes the generalist portfolio manager for the Client, the specialist portfolio manager or trading assistant with respect to the transactions in that account attributable to that specialist or
trading assistant, and any research analyst that played a role in researching or recommending a particular Financial Instrument. </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:ARIAL"><B>Private Placement</B> &#150;
means an offering that is exempt from registration under the Securities Act of 1933 pursuant to Section&nbsp;4(2) or Section&nbsp;4(6) or pursuant to SEC Rules 504, 505 or 506 under the Securities Act of 1933, including hedge funds or private equity
funds or similar laws of <FONT STYLE="white-space:nowrap">non-U.S.</FONT> jurisdictions. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:ARIAL" ALIGN="right"><FONT COLOR="#0071ce">CODE OF
ETHICS&nbsp;|&nbsp;JULY 2017&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14 </FONT></P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:ARIAL"><B>Related Financial Instrument</B> &#150; means any Derivative directly tied to the same underlying Financial Instrument,
including, but not limited to, any swap, option or warrant to purchase or sell that same underlying Financial Instrument, and any Derivative convertible into or exchangeable for that same underlying Financial Instrument. For example, the purchase
and exercise of an option to acquire a Security is subject to the same restrictions that would apply to the purchase of the Security itself. </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:ARIAL"><B>Securities and
Commodities Laws</B> &#150; means the securities and/or commodities laws of any jurisdiction applicable to any Employee, including for any employee located in the U.S. or employed by PIMCO, the following laws: Securities Act of 1933, the Securities
Exchange Act of 1934, the Sarbanes-Oxley Act of 2002, the Investment Company Act of 1940, the Investment Advisers Act of 1940, Title V of the Gramm-Leach-Bliley Act, any rules adopted by the U.S. Securities and Exchange Commission under any of these
statutes, the Bank Secrecy Act as it applies to funds, broker-dealers and investment advisers, and any rules adopted thereunder by the U.S. Securities and Exchange Commission or the U.S. Department of the Treasury, the Commodity Exchange Act, any
rules adopted by the U.S. Commodity Futures Trading Commission under this statute, and applicable rules adopted by the National Futures Association. </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:ARIAL"><B>Security
</B>&#150; means any note, stock, security future, security-based swap, bond, debenture, evidence of indebtedness, certificate of indebtedness, certificate of interest or participation in any profit-sharing agreement, collateral-trust certificate,
preorganization certificate or subscription, transferable share, investment contract, voting-trust certificate, certificate of deposit for a security, fractional undivided interest in oil, gas or other mineral rights, any put, call, straddle,
option, or privilege on any security (including a certificate of deposit) or on any group or index of securities (including any interest therein or based on the value thereof), or any put, call, straddle, option, or privilege entered into on a
national securities exchange relating to foreign currency, or in general, any interest of instrument commonly known as a security, or any certificate of interest or participation in, temporary or interim certificate for, receipt for, guaranty of, or
warrant or right to subscribe to or purchase any of the foregoing. </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:ARIAL"><B>TradeClear </B>&#150; means PIMCO&#146;s proprietary employee trading preclearance system.
</P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:ARIAL" ALIGN="right"><FONT COLOR="#0071ce">CODE OF
ETHICS&nbsp;|&nbsp;JULY 2017&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15 </FONT></P>


<p Style='page-break-before:always'>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:ARIAL"><FONT COLOR="#0071ce"><B>APPENDIX II </B></FONT></P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:ARIAL">PIMCO-advised private funds and accounts make investments in real estate. </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:ARIAL">Real
Estate Portfolio Persons must generally <FONT STYLE="white-space:nowrap">pre-clear</FONT> and receive prior approval from the Compliance Officer for Personal Real Estate Investment Transactions like other Personal Securities Transactions. </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:ARIAL"><B>Real Estate Portfolio Person</B> &#150; means a Portfolio Person with respect to PIMCO advised private funds that executes Real Estate Investment Transactions. </P>
<P STYLE="margin-top:14pt; margin-bottom:0pt; font-size:10pt; font-family:ARIAL"><B>Real Estate Investment Transactions</B> &#150; means transactions involving real estate (such as, without limitation, purchases, sales, financings or other forms of
investments in office, multifamily, retail, commercial, industrial or hospitality properties or interest in real estate services or service providers), either directly or through investments in funds (other than registered investment companies or
publicly traded Securities that are otherwise subject to the Code of Ethics), joint ventures, partnerships, limited liability companies, mortgage or mezzanine loans or other Securities (other than publicly traded Securities that are otherwise
subject to the Code of Ethics). </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:ARIAL"><B>Personal Real Estate Investment Transactions</B> &#150; means Real Estate Investment Transactions for investment purposes. </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:ARIAL">Indirect investments (e.g., real estate funds or partnerships) may also be subject to preclearance as Private Placements under the Code of Ethics. Like other types of
personal investments, you are required to report Personal Real Estate Investment Transactions on a quarterly basis. </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:ARIAL">Notwithstanding the above: </P>
<P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:SYMBOL; " COLOR="#0071ce">&#183;</FONT></TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:ARIAL; font-size:10pt">Transactions involving residential properties owned for personal use (such as a primary residence or a vacation home),
as well as loans, advances or gifts to Immediate Family Members to assist in their purchase or maintenance of such properties, are not subject to preclearance or the reporting requirements. </P></TD></TR></TABLE>
<P STYLE="font-size:4pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:ARIAL; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:SYMBOL; " COLOR="#0071ce">&#183;</FONT></TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:ARIAL; font-size:10pt">Transactions involving <FONT STYLE="white-space:nowrap">one-</FONT> to four-unit residential properties purchased for
investment purposes are not subject to preclearance, so long as such transaction would not (i)&nbsp;constitute a Security (e.g., an interest in an entity of which you are not the general partner, managing member or equivalent), or (ii)&nbsp;violate
any of your responsibilities under the Code of Ethics. Such transactions are subject to the reporting requirements, however. </P></TD></TR></TABLE> <P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:ARIAL">Trades of Securities
or instruments that are identified by a ticker, CUSIP, ISIN or Sedol must be <FONT STYLE="white-space:nowrap">pre-cleared</FONT> using TradeClear (accessible through the PIMCO Intranet). </P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:ARIAL">The Code of Ethics requires you to avoid conflicts of interest related to personal investments, including Personal Real Estate Investment Transactions. You are expected
to avoid any investment, interest or association which interferes or might interfere with your independent exercise of judgment in the best interest of PIMCO and its Clients, including funds advised by PIMCO. Disclosure of personal or other
circumstances constituting a conflict of interest should be reported to the Compliance Officer. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:ARIAL" ALIGN="right"><FONT COLOR="#0071ce">CODE OF
ETHICS&nbsp;|&nbsp;JULY 2017&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16 </FONT></P>

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<DOCUMENT>
<TYPE>EX-99.S.2
<SEQUENCE>5
<FILENAME>d450385dex99s2.htm
<DESCRIPTION>POWER OF ATTORNEY FOR TRENT W. WALKER
<TEXT>
<HTML><HEAD>
<TITLE>Power of Attorney for Trent W. Walker</TITLE>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B><U>POWER OF ATTORNEY </U></B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:5%; font-size:12pt; font-family:Times New Roman" ALIGN="justify">I, the undersigned Treasurer and Principal Financial and Accounting Officer of the registered investment companies listed on
<U>Schedule A</U> attached hereto (each, a &#147;<U>Fund</U>&#148;), hereby severally constitute and appoint each of Ryan G. Leshaw, Joshua D. Ratner and David C. Sullivan, and each of them singly, with full powers of substitution, my true and
lawful attorney, with full power to him to sign for me, and in my name and in the capacity indicated below, any Registration Statement of any Fund on Form <FONT STYLE="white-space:nowrap">N-1A,</FONT> Form <FONT STYLE="white-space:nowrap">N-2</FONT>
or Form <FONT STYLE="white-space:nowrap">N-14,</FONT> all <FONT STYLE="white-space:nowrap">Pre-Effective</FONT> Amendments to any such Registration Statement of such Fund, any and all subsequent Post-Effective Amendments to such Registration
Statement, including, without limitation, pursuant to Rule 462(d), any and all supplements or other instruments in connection therewith, and any subsequent Registration Statements for the same offering which may be filed under Rule 462(b), and to
file the same, with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission, the securities regulators of the appropriate states and territories and any other regulatory authority having
jurisdiction over the issuance of rights and the offer and sale of shares of beneficial interest of the Fund, any and all agreements, filings, documents, registrations, notices, and other instruments required or permitted to be filed pursuant to the
Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, the Investment Company Act of 1940, as amended (the &#147;1940 Act&#148;), the Investment Advisers Act of 1940, as amended, the Commodities Exchange Act, as
amended, the Federal Securities Laws (as that term is defined in Rule <FONT STYLE="white-space:nowrap">38a-1</FONT> under the 1940 Act), and the rules thereunder, and/or any rules or regulations passed or adopted by the New York Stock Exchange or
any other exchange on which a Fund&#146;s shares trade (an &#147;Exchange&#148;), the National Futures Association (&#147;NFA&#148;), the Financial Industry Regulatory Authority (&#147;FINRA&#148;), and/or any other self-regulatory organization
(each, an &#147;SRO&#148;) to whose authority a Fund is subject, and any and all agreements, filings, documents, registrations, notices, and other instruments required or permitted to be filed to comply with the statutes, rules, regulations or law
of any state or jurisdiction, including those required to qualify to do business in any such state or jurisdiction (collectively, the &#147;Securities and Commodities Laws&#148;), and to file the same, with all exhibits thereto, and other
agreements, documents and other instruments in connection therewith, with the appropriate regulatory body including, but not limited to, the Securities and Exchange Commission, the Commodity Futures Trading Commission, an Exchange, the NFA, FINRA,
and any SRO, and/or the securities regulators or other agency or regulatory body of the appropriate states and territories, and generally to do all such things in my name and on my behalf in connection therewith as such attorney deems necessary or
appropriate to comply with the Securities and Commodities Laws and all related requirements, granting unto such attorney full power and authority to do and perform each and every act and thing requisite or necessary to be done in connection
therewith, as fully to all intents and purposes as I might or could do in person, hereby ratifying and confirming all that such attorney lawfully could do or cause to be done by virtue hereof. </P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:12pt" ALIGN="center">


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<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:12pt">
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt"><B>Name</B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt"><B>Capacity</B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Date</B></P></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:12pt">
<TD VALIGN="bottom"> <P STYLE="margin-top:0pt; margin-bottom:1pt; border-bottom:1px solid #000000; font-size:12pt; font-family:Times New Roman" ALIGN="justify">/s/ Trent W. Walker</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">Treasurer (Principal Financial and Accounting Officer)</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;December&nbsp;18, 2017</P></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:12pt">
<TD VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">Trent W. Walker</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD></TR>
</TABLE>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B><U>SCHEDULE A </U></B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman">FUND NAME AND SYMBOL </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:12pt" ALIGN="center">


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<TD VALIGN="bottom" WIDTH="1%"></TD>
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<TD VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">1.</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">PCM FUND, INC.</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;&nbsp;&nbsp;PCM</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:12pt">
<TD VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">2.</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">PIMCO CALIFORNIA MUNICIPAL INCOME FUND</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;&nbsp;&nbsp;PCQ</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:12pt">
<TD VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">3.</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">PIMCO CALIFORNIA MUNICIPAL INCOME FUND II</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;&nbsp;&nbsp;PCK</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:12pt">
<TD VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">4.</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">PIMCO CALIFORNIA MUNICIPAL INCOME FUND III</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;&nbsp;&nbsp;PZC</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:12pt">
<TD VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">5.</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">PIMCO CORPORATE&nbsp;&amp; INCOME STRATEGY FUND</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;&nbsp;&nbsp;PCN</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:12pt">
<TD VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">6.</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">PIMCO CORPORATE&nbsp;&amp; INCOME OPPORTUNITY FUND</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;&nbsp;&nbsp;PTY</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:12pt">
<TD VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">7.</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">PIMCO DYNAMIC CREDIT AND MORTGAGE INCOME FUND</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;&nbsp;&nbsp;PCI</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:12pt">
<TD VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">8.</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">PIMCO DYNAMIC INCOME FUND</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;&nbsp;&nbsp;PDI</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:12pt">
<TD VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">9.</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">PIMCO INCOME STRATEGY FUND</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;&nbsp;&nbsp;PFL</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:12pt">
<TD VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">10.</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">PIMCO INCOME STRATEGY FUND II</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;&nbsp;&nbsp;PFN</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:12pt">
<TD VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">11.</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">PIMCO GLOBAL STOCKSPLUS&nbsp;&amp; INCOME FUND</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;&nbsp;&nbsp;PGP</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:12pt">
<TD VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">12.</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">PIMCO HIGH INCOME FUND</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;&nbsp;&nbsp;PHK</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:12pt">
<TD VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">13.</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">PIMCO INCOME OPPORTUNITY FUND</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;&nbsp;&nbsp;PKO</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:12pt">
<TD VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">14.</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">PIMCO MUNICIPAL INCOME FUND</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;&nbsp;&nbsp;PMF</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:12pt">
<TD VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">15.</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">PIMCO MUNICIPAL INCOME FUND II</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;&nbsp;&nbsp;PML</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:12pt">
<TD VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">16.</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">PIMCO MUNICIPAL INCOME FUND III</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;&nbsp;&nbsp;PMX</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:12pt">
<TD VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">17.</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">PIMCO NEW YORK MUNICIPAL INCOME FUND</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;&nbsp;&nbsp;PNF</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:12pt">
<TD VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">18.</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">PIMCO NEW YORK MUNICIPAL INCOME FUND II</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;&nbsp;&nbsp;PNI</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:12pt">
<TD VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">19.</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">PIMCO NEW YORK MUNICIPAL INCOME FUND III</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;&nbsp;&nbsp;PYN</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:12pt">
<TD VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">20.</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">PIMCO STRATEGIC INCOME FUND, INC.</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;&nbsp;&nbsp;RCS</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:12pt">
<TD VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">21.</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">PIMCO MANAGED ACCOUNTS TRUST</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:12pt">
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:2.00em; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Fixed Income Shares: Series M</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">FXIMX</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:12pt">
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:2.00em; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Fixed Income Shares: Series C</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">FXICX</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:12pt">
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:2.00em; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Fixed Income Shares: Series R</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">FXIRX</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:12pt">
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:2.00em; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Fixed Income Shares: Series TE</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">FXIEX</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:12pt">
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:2.00em; font-size:12pt; font-family:Times New Roman" ALIGN="justify">Fixed Income Shares: Series LD</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">FXIDX</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:12pt">
<TD VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">22.</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">PIMCO FLEXIBLE CREDIT INCOME FUND</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">PFLEX</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:12pt">
<TD VALIGN="top"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">23.</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P ALIGN="justify" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">PIMCO FLEXIBLE MUNICIPAL INCOME FUND</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD></TR>
</TABLE> <P STYLE="font-size:18pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P>
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<DOCUMENT>
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begin 644 g450385pr4636img003.jpg
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begin 644 g450385pr4636img004.jpg
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<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>11
<FILENAME>g450385pr4636img005.jpg
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begin 644 g450385pr4636img005.jpg
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<DOCUMENT>
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begin 644 g450385pr4636img009.jpg
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end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
