PIMCO High Yield Municipal Bond Fund

This fund commits a minimum of 80% of its holdings to debt instruments classified as Municipal Bonds. The interest paid by these bonds is, in the judgment of the issuer's bond counsel at the point of issuance, exempt from federal income taxes. There are no restrictions on the proportion of the portfolio that can be allocated to Municipal Bonds with stronger credit ratings. Furthermore, the fund has the option to invest up to 30% of its assets in "private activity" bonds, the interest from which counts as a tax-preference item for federal alternative minimum tax (AMT) calculations.