<DOCUMENT>
<TYPE>EX-99.77D POLICIES
<SEQUENCE>2
<FILENAME>r77d.txt
<DESCRIPTION>POLICIES
<TEXT>
Effective May 24, 2007, the Fund changed its policies so that it is
permitted to use Fitch, Inc. (Fitch) as a rating agency for purposes of credit
quality investment restrictions. Prior to May 24, 2007, the Fund used
ratings from Moody's Investors Service, Inc. ("Moody's") or Standard & Poors
Ratings Services ("S&P") or if unrated, PIMCO's determination of comparable
quality to a rated security. The Fund may now use Moodys, S&P or
Fitch ratings, or, if an issue is unrated, PIMCOs assessment of the
issue's credit quality.
</TEXT>
</DOCUMENT>
