Quarterly Investment Report
PIMCO
840 Newport Center Drive
Newport Beach
California 92660
(888) 87-PIMCO
www.pimco.com/investments
December 31, 2012
PIMCO Total Return Fund
Total Return Fund Fourth Quarter 2012
1
Risk Disclosures and Index Descriptions are located in the Important Information section of the Appendix

PIMCO Total Return Fund
Market Commentary Market Outlook

Uncertainty and pessimism surrounding the fiscal cliff
negotiations dominated headlines during the fourth quarter

The Federal Reserve enacted further monetary easing by
committing to purchase $45 billion in Treasuries per month
and by explicitly tying the federal funds rate to
unemployment and inflation targets

Most fixed income sectors outperformed Treasuries during
the quarter and 2012 as central bank policies helped push
investors toward higher yielding assets

PIMCO expects the global economy to grow at a modest 1.5
to 2.0 percent over the year ahead


U.S. policymakers passed a last minute deal to avert majority
of the “fiscal cliff” although additional negotiations will be
required to deal with the sequestration. Estimated 2013
impact will be a 1.3 – 1.4 percent drag on GDP

PIMCO anticipates global inflation of between 2.0 and 2.5
percent over the cyclical horizon
Portfolio Recap Portfolio Strategy

The Fund outperformed its index for the quarter and the year

Most sectors that trade at a spread to U.S. Treasuries
outperformed as global central banks extended their
commitment to monetary easing

The following strategies were positive for the quarter:
¾
An underweight to U.S. duration as yields rose across
most of the curve
¾
An allocation to non-Agency mortgages which were
supported by positive supply technicals
¾
A focus on financials, which outperformed the broader
corporate market amid accommodative monetary policy
and improving housing data
¾
Holdings of Build America Bonds (BABs) which
outperformed like-duration Treasuries and long
investment grade corporates during the quarter

¾
Exposure to emerging market local rates, especially in
Brazil, as the Monetary Policy Committee cut the policy
rate

The following strategies were negative or neutral for returns:
¾
An overweight to Agency mortgage-backed securities
(MBS) which underperformed like-duration Treasuries.
This was partially offset given the focus on lower coupon
mortgages which outperformed on a relative basis

Continue to reduce risk while preferring high quality income
over price appreciation, as risk premiums still appear richly
priced relative to our outlook

Remain focused on sectors that will benefit from central bank
actions that have increased liquidity and suppressed volatility

Selectively add high quality duration in countries with
healthier balance sheets and independent monetary policy -
including, Australia, Canada, Brazil, and Mexico

Reduce holdings in Agency mortgages to benchmark
weightings as Agency MBS appear fully priced with limited
upside following recent central bank actions

Shift credit exposure towards securities higher in the capital
structure and remain cautious on the bonds of companies
with economic exposure to Europe


Retain exposure to select corporate and quasi-sovereign
bonds in countries with strong initial conditions and strong
balance sheets such as Brazil and Mexico

Continue to hold high quality municipal bonds which have
reverted to fair value; focus on essential service revenue
bonds such as water and sewer, power, and airports

Retain longer dated Treasury Inflation-Protected Securities
(TIPS) positions to protect against potentially higher long-
term inflation


Summary of Performance Data and Portfolio Statistics
PIMCO Total Return Fund
Institutional Class
Performance Since
Periods Ended 12/31/2012 Inception 10 yrs 5 yrs 3 yrs 1 yr 6 mos 3 mos
Total Portfolio
1
Before Fees (%) 8.83 7.29 8.83 8.25 10.86 4.60 1.28
After Fees (%) 8.35 6.81 8.34 7.75 10.36 4.36 1.17
(Inception 05/11/87)
Barclays U.S. Aggregate Index (%)
7.20 5.18 5.95 6.19 4.21 1.80 0.21
Barclays U.S. Aggregate Index (%)3
The Fund's Total Annual Operating Expenses 0.46%
Summary Information 9/30/2012 12/31/2012 Sector Allocation 9/30/2012 12/31/2012 9/30/2012 12/31/2012
Total Net Assets (USD in millions) 277,679.2 285,399.8

Government-Related
5
18 26 17 30
SEC 30-Day Ann. Yield (%) 1.82 1.64 Government-Treasury 20 26 44 45
Distribution Yield (%)
3
2.61 2.74 Government-Agency 3 4 4 4
Effective Duration (yrs) 4.0 4.8 Swaps and Liquid Rates -5 -3 -31 -19
Benchmark Duration - Provider* (yrs) 4.9 5.1 Mortgage 49 42 30 23
Benchmark Duration - PIMCO** (yrs) 4.6 4.7 Invest. Grade Credit 12 10 12 8
Effective Maturity (yrs) 5.9 6.1 High Yield Credit 2 2 2 2
Average Coupon (%) 3.6 3.6 Non U.S. Developed 11 12 10 10
Net Currency Exposure (%) 0.8 0.8 Emerging Markets 8 7 7 5
Tracking Error (10 yrs, %)
4
2.1 2.1 Municipal 5 5 14 12
Information Ratio (10 yrs)
4
0.7 0.7 Other 1 1 1 1
Net Cash Equivalents:
6
-6 -5 7 9
Commercial Paper / STIF 1 0 0 0
ST Government-Related 7 15 1 3
ST Mortgage 2 2 0 0
ST Credit 8 5 0 0
U.S. Money Market Futures/Options 19 26 5 6
Non-U.S. Money Market Futures 0 1 0 0
Other 6 4 1 0
Less: Liabilities -49 -58 0 0

Total
100 100 100 100
Expense Ratio
See example of tracking error / information ratio in
Important Information section of the Appendix.
% of Market Value % of Duration
Portfolio
Index
BofA ML 1-
3 Yr.
Treasury
Citigroup
10-Yr. Strip
0
2
4
6
8
10
12
024681012
Annualized Return (%)
Standard Deviation of Return
2
(%)
10-Year Return vs. Standard Deviation
Government-Related may include nominal and inflation-protected Treasuries, agencies, interest
rate swaps, Treasury futures and options, and FDIC-guaranteed corporate securities.
The performance quoted represents past performance. Past performance is no guarantee of future results. Investment return and
principal value will fluctuate so that Fund shares, when redeemed, may be worth more or less than their original cost. Current

performance may be lower or higher than the performance data quoted. Details regarding any Fund’s operating expenses can be found
in the Fund’s prospectus. Performance data current to the most recent month-end is available at www.pimco.com/investments or by
calling (888) 87-PIMCO.
*The benchmark duration as provided by Benchmark Provider
**Benchmark duration as calculated by PIMCO
2
Additional Share Class Performance
PIMCO Total Return Fund
Net of Fees Performance Gross Net NAV Inception Since 10 5 3 1 6 3
Expense Expense Currency Date Inception Year Year Year Year Month Month
Ratio Ratio
ADMINISTRATIVE Class:
Total Return Fund, Administrative
0.71 - USD Sep-08-94 8.08 6.55 8.07 7.48 10.08 4.23 1.10
Barclays U.S. Aggregate Index
- 7.20 5.18 5.95 6.19 4.21 1.80 0.21
Class D:
Total Return Fund, Class D
0.75 - USD Apr-08-98 8.03 6.49 8.02 7.44 10.04 4.21 1.09
Barclays U.S. Aggregate Index
- 7.20 5.18 5.95 6.19 4.21 1.80 0.21
Class P:
Total Return Fund, Class P
0.56 - USD Apr-30-08 8.26 6.71 8.23 7.64 10.25 4.30 1.14
Barclays U.S. Aggregate Index
- 7.20 5.18 5.95 6.19 4.21 1.80 0.21
The performance quoted represents past performance. Past performance is no guarantee of future results. Investment return and principal value will
fluctuate so that Fund shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than
the performance data quoted. Details regarding any Fund’s operating expenses can be found in the Fund’s prospectus. Performance data current to
the most recent month-end is available at www.pimco.com/investments or by calling (888) 87-PIMCO.

December 31, 2012
3
Market Commentary Fourth Quarter 2012
4
Politics Weigh Heavily on Economics
In a largely status quo election, Americans voted President
Barack Obama to a second term in office in November. While
the President’s reelection likely cemented the fate of the
Affordable Care Act and Dodd-Frank reforms, market
participants quickly turned their attention to the uncertainty
surrounding the impending fiscal cliff. Both political parties
recognized that averting the cliff was essential to avoiding a
recession in 2013, but negotiations were strained for much of
the quarter with Democrats seeking increased tax revenue from
the wealthiest Americans and Republicans asking for spending
cuts on entitlement programs. Ultimately, hopes of a grand
bargain abated and gave way to a short-term deal, thus opening
the door to further fiscal negotiations, most notably on a debt
ceiling increase and spending cuts (the “sequester”), in 2013.
While politicians struggled to agree on fiscal policy, the Federal
Reserve (Fed) unveiled new monetary policy measures to
stimulate the economy. According to Chairman Bernanke, “The
conditions now prevailing in the job market represent an
enormous waste of human and economic potential.” With
Operation Twist set to expire at the end of the year, the
Committee announced that they will initiate purchases of $45
billion in Treasuries, in addition to the existing purchases of $40
billion in Agency mortgage-backed securities (MBS), each
month. The Fed also took the extraordinary step of linking an
increase in the federal funds rate to specific economic targets.

Rates will stay low, between 0 and 0.25 percent, at least as long
as the unemployment rate remains over 6.5 percent and
projected inflation is below 2.5 percent. These targets replace
the Fed’s previous statement that rates would remain low
through at least the middle of 2015.
U.S. interest rates reversed a downward trend and rose during
the fourth quarter of 2012. The 10-year U.S. Treasury yield
increased 12 basis points during the quarter to end December at
1.76 percent. The U.S. Treasury yield curve steepened as the 2-
year U.S. Treasury yield rose 2 basis points while the 30-year
U.S. Treasury yield rose 13 basis points. Yields in most
eurozone countries fell as investors responded to the European
Central Bank’s program of Outright Monetary Transactions and
Mario Draghi’s commitment to support the euro. Spanish and
Italian 10-year yields fell 67 and 60 basis points respectively
during the quarter. The Barclays U.S. Aggregate Index, a widely
used index of U.S. high-grade bonds that includes Treasuries,
returned 0.22 percent during the quarter, and most fixed income
sectors that trade at a spread to U.S. Treasuries outperformed
on a duration-adjusted basis.
Despite the rhetoric surrounding the fiscal cliff and the damage
from Hurricane Sandy, there were positive economic data
released during the quarter. According to gross domestic
product (GDP) data, the U.S. economy grew at a higher than
expected 3.1 percent annual rate during the third quarter, up
from 1.3 percent during the second quarter. The housing market
continued to show improvement during the fourth quarter amid
record low mortgage rates. In October, the S&P/Case-Shiller
Index of property values in 20 cities increased 4.3 percent from
a year earlier, and sales of existing homes rose 5.9 percent to

an annual rate of 5.04 million, the highest level in three years,
according to the National Association of Realtors. The
unemployment rate fell to 7.8 percent during the quarter,
representing a four year low.
Most Fixed Income Sectors Outperform U.S. Treasuries
The following summarizes fixed income sector returns during the
fourth quarter of 2012:
 Agency MBS underperformed like-duration Treasuries in the
fourth quarter but outperformed for the year. An increase in
prepayment speeds coupled with profit taking following the
Fed’s third round of Quantitative Easing (QE3)
announcement led to the relative underperformance. While
the sector as a whole underperformed, volatility remained in
relative valuations between coupons as lower origination
coupons fared better amid the Fed’s support. Commercial
Market Commentary, (cont’d)

Fourth Quarter 2012

5
MBS and non-Agency mortgages outperformed for the
quarter and the year as limited supply, strong investor
appetite for higher yielding assets and signs of a bottom in
housing continued to fuel demand.
 Investment grade and high yield corporate bonds
outperformed like-duration Treasuries during the fourth
quarter and the year as investor demand for risk assets
remained elevated given persistently low Treasury yields.
Corporate bonds benefitted from positive technicals and
reduced risk of disorderly deleveraging, as they continued to

ride the momentum provided by global monetary policy
action. On a relative basis, financials outperformed the
broader corporate market on improving fundamentals and
signs of a stabilizing housing market.
 Municipal bonds, both tax-exempt and taxable, posted
positive absolute returns over the quarter and the year, as
demand continued to outpace new issue supply. Primary
market supply was up 30 percent year-over-year; however,
the majority of primary market issuance was comprised of
refunding activity rather than new-money issuance. Demand
remains strong, as municipal mutual funds continued to see
inflows throughout most of the quarter. Select lower quality
municipal sectors outperformed high-grade sectors as
investors reached for yield by pushing out the curve and
down the credit spectrum. The industrial revenue and
healthcare sectors were the top performers over the quarter.
Municipal credit spreads, as measured by BBB versus AAA
Municipal Market Data yields, tightened modestly during the
quarter.
 Treasury Inflation-Protected Securities (TIPS) returned 0.69
percent for the quarter and 6.98 percent for the year
(Barclays TIPS Index), and outperformed nominal Treasuries
for both periods. Real yields declined across the maturity
spectrum during the year with the 10-year real yield ending
the year at -0.74 percent. Breakeven inflation levels (the
difference between nominal and real yields and a proxy for
inflation expectations) widened during the quarter and the
year as the markets priced in higher longer-term inflation
expectations given the Fed’s continued dovish monetary
policies.

 Emerging markets (EM) assets also outperformed during the
quarter and the year, benefitting from a decline in yields, a
contraction in spreads, and a rise in EM currencies driven by
the risk-on environment. EM spreads tightened 161 basis
points over the year and 42 basis points over the quarter,
while the JPMorgan EM Bond Index (EMBIG) returned 3.33
percent for the fourth quarter and 18.54 percent for the year.
EM local assets outperformed Treasuries during the quarter
and year, returning 4.13 and 16.76 percent, respectively, as
measured by the JPMorgan GBI – EM Global Diversified
Index. EM currencies, as measured by the JPMorgan ELMI+
Index, returned 1.13 percent for the fourth quarter and 7.45
percent for the year.
 U.S. Treasuries underperformed most other developed
sovereign bond markets on a hedged basis for the quarter
and year amid reduced uncertainty concerning a left-tail
event in Europe given the unprecedented monetary support
from global central banks.



Market Outlook

First Quarter 2013
6
The New Normal Remains Intact
PIMCO expects the global economy to grow at a real rate of 1.5
to 2.0 percent in 2013, representing a slowdown from the 2.2
percent pace of growth seen over the past 12 months. Real
growth will be moderated by efforts to resolve debt overhangs

through fiscal restraint as evidenced by the slowing in corporate
profits, capital expenditures and global trade. Simultaneously,
inflation will decrease in the near term. Households will continue
to delever their balance sheets while the corporate sector
remains reluctant to engage its own. Nominal growth could,
however, be bolstered by the continued resolve of central banks.
The balance of these forces will determine if GDP growth has
slowed to stall speed or if a coordinated global slowdown can be
averted.
The negative effects of austerity measures implemented
throughout the eurozone and the U.K. are reflected in the weak
growth numbers within the region and demonstrate recessions
already underway. Mixed economic data and the unending hope
for further stimulus in the U.S. and other developed and
emerging market (EM) economies allowed for cautious optimism
and tempered market volatility in the second half of 2012.
However, ongoing efforts by policymakers to offer short-term
solutions are becoming increasingly ineffective in delivering real
outcomes. Financial markets’ heightened sensitivity to policy-
related news reflects acknowledgement of the difficulties that lie
ahead in resolving significant structural problems in many
economies.
 Key Decisions Support Eurozone – The ratification of the
European Stability Mechanism (ESM) and the European
Central Bank’s (ECB) conditional commitment to be the
lender of last resort significantly reduced the probability of
tail risk in the eurozone. Peripheral sovereign spreads
tightened significantly in the fourth quarter, as both actions
boosted confidence and slowed the process of delevering.
The question now becomes when Spain or another troubled

sovereign will formally ask for assistance, fulfilling a key pre-
requisite for the ECB to buy their bonds. However, bond
purchases alone will not be enough to resolve the
fundamental challenges facing the eurozone. We expect
progress toward greater integration to be incremental,
conditional and punctuated with periods of volatility,
especially surrounding the upcoming Italian elections.
 U.S. Recovery Frustrated by Policy Uncertainty – U.S.
policymakers passed a last minute deal to avert the majority
of the “fiscal cliff” although additional negotiations will be
required to deal with the sequestration. The estimated 2013
impact will be a 1.3 – 1.4 percent drag on GDP. PIMCO
forecasts U.S. growth between 1.25 and 1.75 percent as
ongoing negotiations over government spending and taxes
prevent positive economic reports from establishing a trend.
In a notable highlight, third quarter GDP was revised up to
3.1% from an initial reading of 2.0 percent. Brighter news
continues out of the housing sector where many indicators
including strong demand, falling inventory, declining
distressed sales and improving affordability suggest a
gradual bottoming of home prices.
 The New Normal Arrives in Emerging Markets –Although
PIMCO anticipates EM growth to continue to outpace that of
developed markets over the cyclical horizon, growth will
come at a significantly lower level than in recent years. EM
economies continue to suffer from the knock-on effects of
recession and slowdown in much of the developed world.
 Longer Term Inflation Concerns Build – PIMCO
anticipates global inflation of between 2.0 and 2.5 percent
over the cyclical horizon. On a secular basis, PIMCO

expects the prolonged wave of ultra-dovish monetary policy
to drive longer-term inflation higher.


Market Outlook, (cont’d)

First Quarter 2013
7
Investment Strategies: Managing Liquidity and Avoiding
Default Risk
Once again, central banks’ actions combined with slowing
improving fundamentals drove financial asset valuations higher
during the fourth quarter. PIMCO sees many asset classes as
being fully valued and continues to implement risk reduction
strategies across portfolios. While risks remain skewed to the
downside, we retain our broad defensive positioning and our
focus on yield derived from high quality sources and active
management.
 Interest Rate Strategies – PIMCO plans to maintain a
neutral duration position. Portfolios will emphasize high
quality duration from countries that we view as having the
cleanest balance sheets, such as the U.S., Canada, Australia,
Brazil and Mexico. We remain concentrated in the 5-10 year
portion of the yield curve where we see superior opportunities
for roll-down
1
and price appreciation compared to those
available at the short-end, where potential rate rises and
volatility are constrained by Fed intervention. We remain
underweight the long end of the yield curve as longer

maturities may not adequately compensate investors for
sizeable longer-term inflation risk.
 Mortgages – PIMCO now views Agency mortgages as fully
priced due to ongoing central bank interventions and will look
to reduce exposure to benchmark neutral. While recognizing
that the new Fed program will likely continue to disrupt
absolute valuations within the mortgage market over the
cyclical horizon, PIMCO will continue to take advantage of
relative value opportunities across mortgage coupons. We
plan to hold non-Agency mortgages and commercial
mortgage-backed securities (CMBS) that have senior

1
Roll-down is a form of return that is realized as a bond approaches maturity, assuming
an upward sloping yield curve.
positions in the capital structure and are a source of attractive
yield.
 Corporate Bonds – PIMCO sees increasing differentiation
between credits in terms of default risk and continues to shift
its exposure towards securities higher up in the capital
structure. We remain cautious towards companies overly
dependent on revenue from regions which are in the earlier
stages of their deleveraging cycles, such as Europe.
We continue to assess and refine our financials exposure
both due to industry developments and from a valuation
perspective given the outperformance of this sector in 2012.
 Emerging Markets – PIMCO plans to retain exposure to
corporate and quasi-sovereign bonds in select countries with
strong initial conditions and high quality balance sheets such
as Brazil and Mexico. We also plan to maintain exposure to

rates in these countries which have relatively high nominal
and real local interest rates and steep yield curves with the
potential to capture roll-down. We continue to expect EM to
outpace developed markets over the secular horizon.
 Currency – Having reduced our exposure to commodity-
intensive and EM currencies in recent months, PIMCO plans
to maintain minimal currency exposure while the threat of
elevated volatility persists. We are focused on high quality,
EM currencies such as the Brazilian real, Chinese yuan and
Mexican peso as opposed to low quality, low yielding
currencies in developed markets.
 Municipals and Treasury Inflation-Protected Securities
(TIPS) – PIMCO will broadly maintain its municipal positioning
yet not seek to add exposure given that tax-exempt
municipals reverted to fair value during 2012. PIMCO
expects to retain its positions in TIPS as the threat of higher
longer term inflation remains.
Mortgage Commentary and Outlook Fourth Quarter 2012
8
Market Commentary
 Agency mortgage-backed securities (MBS)
underperformed like-duration Treasuries amid
post-QE3 profit taking and increased prepayment
concerns after the reelection of President Obama.
 Lower coupons benefitted from ongoing Fed
support, while higher coupons exhibited significant
volatility (especially in November) due to elevated
prepayment concerns and poor technicals.
 The 30-year FNMA Par Coupon ended the year at
2.26%, up slightly from the end of last quarter.

 HARP (Home Affordable Refinance Program)
continues to have a material impact on higher
coupon prepayments, but will likely wind down
over the next six months.
Market Outlook
 The Fed’s $70 billion in monthly purchases are
likely to continue through 2013, providing strong
support for lower coupon MBS.
 Mortgage origination employment has increased in
recent months and could result in a slight
tightening in primary secondary spreads as well as
an increase in prepayment speeds in 2013.
 Despite the recent rally, non-Agency MBS will
likely continue to benefit from improving housing
fundamentals and limited new issuance.








Source: PIMCO, Federal Reserve. Dotted lines represent PIMCO
various forecasts
0
5
10
15
20

25
30
35
40
45
Jan '12 Mar '12 May '12 Jul '12 Sep '12 Nov '12
Prepayment Speed(CPR)
Non-HARP Eligible Harp Elegible
Past performance is no guarantee of future results. Graphs are
for illustrative purposes only and are not indicative of the
performance of any particular investment.
Investment Grade Credit Commentary and Outlook

Fourth Quarter 2012
9
Market Commentary
 The U.S. investment grade credit market, as represented by the
Barclays U.S. Credit Index, returned 1.04% in the fourth quarter.
U.S. credit outperformed Treasuries by +1.17%, as credit
markets continued to ride the technical boost provided by QE3
in addition to the FOMC’s announcement that it would convert
Operation Twist into outright Treasury bond purchases.
 The fourth quarter set a record for high grade bond issuance, as
$229bn came to market, bringing total primary market issuance
to $859bn for 2012. Demand remained robust despite the high
issuance total, as average new issue concessions were lower
than each of the prior three years.
 Financials were the strongest performing sector on an excess
return basis, returning +1.97% on average relative to like-
duration Treasuries. Industrials marginally outpaced utilities,

returning +0.85% and +0.81% relative to like-duration
Treasuries, respectively.
Market Outlook
 Monetary easing remained a dominant theme in the fourth
quarter as global central banks enacted policy responses aimed
at offsetting fiscal tightening. However, it is unlikely that policy
makers’ attempts at staving off near-term challenges will do
much in the way of addressing longer-term structural
impediments to growth.
 We still see many opportunities in credit that can offer
compelling risk-adjusted returns for investors. In the current
environment of sluggish global growth, where credit beta has
been squeezed and will likely contribute less to total return of
credit moving forward, we believe investors should focus on
bottom-up research in specific sectors and companies that have
the opportunity to grow faster than their economies.

Unless otherwise noted, graph data represents the excess return performance of the Barclays U.S. Credit Index and its sub-indices. The corporate sectors shown are not equally
weighted in the index but instead are market weighted. The sectors shown represent the broad components of the index. Excess Return is a duration-adjusted measure of
performance relative to a term structure-matched position. The predominate method for calculating excess return uses U.S. Treasuries and key rate durations. It measures the
amount by which the return on an investment credit exceeds the equivalent “risk free” rate of return. All investments contain risk and may lose value.
Past performance is no guarantee of future results. Graphs are for illustrative purposes only and are not indicative of the performance of any particular investment.

0.0
0.5
1.0
1.5
2.0
2.5
Financials Industrials Utilities

Excess return (%)
Fourth quarter returns
Sectors
Barclays U.S. Credit Index
0.0
0.5
1.0
1.5
2.0
2.5
Financials Industrials Utilities
Excess return (%)
Fourth quarter returns
Sectors
Barclays U.S. Credit Index
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
U.S. Credit Financials Industrials Utilities
Yield to maturity (%)
Sector yields
Real Return Commentary and Outlook

Fourth Quarter 2012
10

Market Commentary
 Treasury Inflation-Protected Securities (TIPS) returned 0.69
percent during the fourth quarter, as represented by the Barclays
Capital U.S. TIPS Index. The real yield curve remained relatively
unchanged during the fourth quarter with the largest move
happening at the front of the curve as the 1-year real yield
increased just over 30 basis points.
 During October and November, real yields rallied on the back of
the new round of bond purchases that the Federal Reserve
announced in September; however, decreasing marginal
effectiveness of further quantitative easing did not have a
dramatic effect on real yields. December witnessed a slight sell-off
in real yields resulting in longer-dated yields being relatively
unchanged for the quarter. Shorter maturity real yields were hurt
by lower commodity prices.
 Inflation accruals were positive at 0.96 percent over the quarter.
Increases in crude oil and gasoline prices were reflected in CPI
numbers for August, September and October, which were passed
through to TIPS in the fourth quarter.
 TIPS outperformed nominal Treasuries as nominal yields
increased more than real yields across the term structure,
resulting in higher inflation expectations as represented by wider
breakeven inflation (or the difference between nominal Treasury
yields and yields on maturity matched TIPS). Continued
accommodative policy by the Fed helped feed higher inflation
expectations.
Market Outlook
 Expectations that the Fed will remain accommodative for an
extended period are likely to translate into real rates remaining
low for a long time.

 Shorter-term, we foresee subdued inflation given excess capacity
and restrained wage growth. However, we expect inflation to trend
higher longer-term on the back of poor fiscal conditions and heavy
debt loads in the U.S. and other developed countries, prolonged
accommodative and unconventional monetary policies, and
continued stress on global commodity supplies from emerging
market demand growth.


SOURCE: Bloomberg
Past performance is no guarantee of future results. Graphs are for illustrative
purposes only and are not indicative of the performance of any particular investment.
The negative real rates in U.S. TIPS Yield Curve chart are directly observable in
market traded TIPS. The yield curves represent TIPS yields at specific points in time
as referenced in the chart.
SOURCE: Barclays

-6
-5
-4
-3
-2
-1
0
1
2
3
4
'04 '05 '06 '07 '08 '09 '10 '11 '12
Yield (%)

Breakeven inflation (BEI) rates
2-year BEI 5-year BEI
30-year BEI 10-year BEI
-6
-5
-4
-3
-2
-1
0
1
2
3
4
'04 '05 '06 '07 '08 '09 '10 '11 '12
Yield (%)
Breakeven inflation (BEI) rates
2-year BEI 5-year BEI
30-year BEI 10-year BEI

-2
-1
0
1
2Y 3Y 4Y 5Y 6Y 7Y 8Y 9Y 10Y 20Y 30Y
Yield (%)
U.S. real yields
31 Dec '11 30 Sep '12 31 Dec '12
Municipal Bond Commentary and Outlook


Fourth Quarter 2012
11
0
10
20
30
40
50
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Muni Issuance (billions $)
Monthly Muni Supply
2009 2010 2011 2012
50
70
90
110
130
150
170
190
210
230
'01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12
30 Year AAA Muni/Treasury Yield Ratio (%)
30-YEAR AAA GENERAL OBLIGATION(G.O.) AS
A PERCENTAGE OF 30-YEAR TREASURY YIELD
Yield Ratio
Average
Market Commentary


Municipal market yields rallied to record low levels in the
fourth quarter, before selling off near the end of the year.
Municipal yields rose by as much as 19 basis points in the
short end of the curve and fell up to 2 basis points at the
longer end of the curve over the quarter, as measured by the
AAA MMD scale. Municipals outperformed treasuries, as
Municipal-to-Treasury ratios tightened to 98 and 96 percent in
the 10- and 30- year portions of the curve, relative to 104 and
101 percent, respectively, at the end of the third quarter.

Municipal market issuance totaled $92 billion in the fourth
quarter, up seven percent from the third quarter of 2012,
according to Bond Buyer data. New issue volume reached
$373 billion for the year, up 30 percent from $282 billion in
2011. The majority of issuance was composed of refunding
volume as issuers sought opportunities to refinance callable
debt in the low-rate environment. According to Bond Buyer,
61 percent of 2012 total issuance was refunding deals
compared to 49 percent for 2011. Robust demand generally
absorbed the uptick in supply throughout most of the quarter.
Market Outlook

We expect high refunding activity to continue into next year,
which may result in volume greater than $400 billion for the
year. Much of the refunding issuance is expected to arrive in
12-20 year maturities, leading to higher supply in that
maturity range. We anticipate the high current refunding
environment will lead to opportunities in these maturities in
the next year if new-money new-issue volume continues to
remain constrained.


We continue to favor what we believe are higher quality
credits. This segment of the credit spectrum may represent
greater long-term value versus low-grade municipals, which
have observed significant spread compression in 2012.













SOURCE: MMD, Bloomberg Financial Markets
The 30-Year AAA G.O. Yield is proprietary data from Thompson Reuter’s
Municipal Market Data (MMD). The yield consists of all general obligation
municipal bonds issued in the United States with 30 years remaining to maturity,
which have been rated in the highest rating category by a Nationally Recognized
Statistical Ratin
g
Or
g
anization.
SOURCE: The Bond Buyer
Past performance is no guarantee of future results. Graphs

are for illustrative purposes only and are not indicative of the
performance of any particular investment.
Developed Non-U.S. Commentary and Outlook Fourth Quarter 2012
12
Market Commentary
 Politics, rather than economics, dominated financial markets during
the quarter. U.S. legislators barely averted the self-imposed fiscal
cliff by agreeing on tax changes, while kicking the can on spending
cuts and broader fiscal reform. Shinzo Abe was elected Japanese
PM (again), having campaigned on the promise of aggressive fiscal
and monetary policy action, spurring optimism for a new path in
Japan. The resignation of Mario Monti in Italy and call for early
elections in 2013 raised concerns over the sustainability of recent
reforms.
 The eurozone officially fell into recession as the periphery struggled
under strict austerity programs and core countries such as Germany
showed signs of economic strain. The U.K. and Japan continued to
face weak growth as fiscal support waned and exports continued to
slow. The Chinese economy showed signs of growth as
policymakers reinforced commitments to stimulate the economy.
 Unprecedented global liquidity from central banks supported most
risk assets over the quarter. European markets remained calm, and
peripheral spreads came in substantially, driven by the European
Central Bank’s Outright Monetary Transaction (OMT) announcement
in the third quarter. Risk-on sentiment supported EM and HY spread
compression – notably, eurozone HY credit. Eurozone debt – both
periphery and core – led the rally in the sovereign bond space during
the quarter.
Market Outlook
 As with 2012, global growth is expected to be weak in 2013. The

slowdown is driven by one part uninspiring economics and two parts
dysfunctional politics.
 Cyclical tailwinds from a modest post-crisis recovery are fading, as
the U.S. economy suffers through divisive political battles, the
eurozone remains in recession, the U.K. and Japan work to generate
growth, and emerging markets slow on weak global demand.
 Looming events on the horizon include the trifecta of fiscal deadlines
in Washington (debt ceiling, sequestration and continuing resolution),
the Italian elections, PM Abe’s ability to implement Japanese
reforms, and China’s leadership transition. Global central bankers
will continue to apply unconventional policy, although with diminishing
returns.
12/31
Spot
Q4 YTD
euro
1.3193 +2.59 -1.12
yen
86.75 -10.13 -4.47
Australian $
1.0394 +0.15 +0.46
Canadian $
0.9921 -0.85 +0.67
British pound
1.6255 +0.54 +1.54
SOURCE: Bloomberg
% Change
-5
0
5

10
2 Yr. 5 Yr. 10 Yr. 30 Yr.
12/31/2012 (%)
0.10 0.19 0.79 1.98
QTD Change (bps)
+0 -1 +1 +9
Basis Points
Q4 Change in Japanese Yields
-30
-20
-10
0
10
2 Yr. 5 Yr. 10 Yr. 30 Yr.
12/31/2012 (%)
(0.02) 0.30 1.32 2.18
QTD Change (bps)
-4 -21 -13 -8
Basis Points
Q4 Change in Euroland Yields
0
5
10
15
2 Yr. 5 Yr. 10 Yr. 30 Yr.
12/31/2012 (%)
0.32 0.86 1.83 3.10
QTD Change (bps)
+13 +13 +10 +3
Basis Points

Q4 Ch ange in U.K. Yie lds
12/31
Spot
Q4 YTD
euro
1.3193 +2.59 -1.12
yen
86.75 -10.13 -4.47
Australian $
1.0394 +0.15 +0.46
Canadian $
0.9921 -0.85 +0.67
British pound
1.6255 +0.54 +1.54
SOURCE: Bloomberg
% Change
-5
0
5
10
2 Yr. 5 Yr. 10 Yr. 30 Yr.
12/31/2012 (%)
0.10 0.19 0.79 1.98
QTD Change (bps)
+0 -1 +1 +9
Basis Points
Q4 Change in Japanese Yields
-30
-20
-10

0
10
2 Yr. 5 Yr. 10 Yr. 30 Yr.
12/31/2012 (%)
(0.02) 0.30 1.32 2.18
QTD Change (bps)
-4 -21 -13 -8
Basis Points
Q4 Change in Euroland Yields
0
5
10
15
2 Yr. 5 Yr. 10 Yr. 30 Yr.
12/31/2012 (%)
0.32 0.86 1.83 3.10
QTD Change (bps)
+13 +13 +10 +3
Basis Points
Q4 Ch ange in U.K. Yie lds
Past performance is no guarantee of future results. Graphs are for illustrative
purposes only and are not indicative of the performance of any particular investment.
Emerging Markets Commentary and Outlook

Fourth Quarter 2012
13
* EM (Corp) is represented by JPM CEMBI Div.; High Yield is represented by Barclays Corporate High
Yield Index; EM ($) is represented by the JPM Emerging Market Bond Index Global; IGC is
represented by Barclays U.S. Corporate Investment Grade Index; TSY is represented by Barclays
U.S. Treasury Index; EM (LC Bonds) is represented by the JPM GBI-EM Global Diversified Index; EM

(FX) is represented by the JPM ELMI+; Non-U.S. Gov’t Bond is represented by the JPM Non-U.S.
Gov’t Bond Unhedged Index; EM Equity is represented by MSCI Emerging Markets Index, World
equity is represented by MSCI World Index.
** External is represented by JPM Emerging Market Bond Index Global; Corp is represented by JPM
CEMBI Div.; Local is represented by JPM GBI-EM Global Div.; Currency is represented by JPM
ELMI+
3.3
3.2
3.0
1.0
-0.1
4.1
1.1
-2.7
5.6
2.5
18.5
15.6
17.0
9.4
2.0
16.8
7.5
0.9
18.2
15.8
-5
0
5
10

15
20
25
EM ($) High
yield
EM
(corp)
IGC TSY EM (LC
bonds)
EM
(FX)
Non-U.S.
gov't
bond
EM
equity
World
equity
Total return (%)
Sector index returns*
Q4 '12 2012
Local currency
USD
Equities
Market Commentary
 Emerging market (EM) asset classes benefitted from
increased liquidity induced by central banks globally. EM
asset returns exceed nearly all comparable investments
in the fourth quarter.
 Record-breaking flows into external debt provided a

positive technical tailwind for the asset class. Continued
monetary easing in select EM countries helped boost
gains on local market assets.
Market Outlook
 We expect the global economic backdrop to remain
weak in 2013 due to continued deleveraging dynamics in
the U.S. and Europe. Despite their stronger balance
sheets, lower debt levels, and scope for flexible policy,
we cannot foresee emerging market countries escaping
the gravitational pull of lower growth rates in the large,
industrialized economies.
 After record-breaking inflows and record low yields, EM
external debt appears close to fully valued. Near-zero
U.S. Treasury rates are unlikely to be significant drivers
of returns in 2013 and any additional spread tightening
should come at a slower rate than in 2012. However,
EM quasi-sovereign and corporate debt should provide
attractive alternatives to more fully valued sovereign
external paper.
 In EM local markets, we see investment opportunities in
countries with positive real rates, high nominal yields,
steep curves, and credibly managed inflation
expectations. As most easing cycles seem to be nearing
an end, we expect returns to largely come from roll-
down* as opposed to falling yields in 2013.



















Past performance is no guarantee of future results. Graphs are
for illustrative purposes only and are not indicative of the
performance of any particular investment.
0.8
1.6
0.9
1.6
0.4
1.0
0.5
1.4
2.2
0.0
0.4
0.7
0.0
0.5

1.0
1.5
2.0
2.5
Oct '12 Nov '12 Dec '12
Percentage (%)
EM index returns**
External Corp Local Curr ency
*Roll-down is a form of return that is realized as a bond approaches maturity,
assuming an upward sloping yield curve.
Portfolio Characteristics and Benchmark Variance
PIMCO Total Return Fund
Sector
Exposure*
Curve
Exposure
* Net cash equivalents include U.S. and non-U.S. money market futures, where permitted. See Sector Allocation on Summary of Performance Data and Portfolio
Statistics Page.
7
2
-3
13
-1
-18
10
1
-5
13
0
-19

-40
-30
-20
-10
0
10
20
30
40
0-1 yrs 1-3 yrs 3-5 yrs 5-7 yrs 7-8 yrs 8+ yrs
-34
14
-18
2
10
4
15
7
-18
4
-22
2
10
2
13
9
-80
-60
-40
-20

0
20
40
60
80
Gov't-
Related
Mtg IG Credit HY Credit Non US
Develop
EM Municipal
/Other
Net Cash
Equiv
9/30/2012
12/31/2012
Portfolio vs. Benchmark (%)
1
17
30
12
2
10
7
15
7
30
23
8
2
10

5
13
9
0
5
10
15
20
25
30
35
40
Gov't-
Related
Mtg IG Credit HY Credit Non US
Develop
EM Municipal
/Other
Net Cash
Equiv
% of Duration
9/30/2012
12/31/2012
Portfolio (%)
1
7
21
16
24
5

27
10
18 18
25
5
24
0
10
20
30
40
50
60
0-1 yrs 1-3 yrs 3-5 yrs 5-7 yrs 7-8 yrs 8+ yrs
% of Duration
Gov't-Related may include nominal and inflation-protected Treasuries, agencies, interest rate swaps, Treasury futures and options, and FDIC-guaranteed
corporate securities.
14
Direct Country and Currency Exposure
PIMCO Total Return Fund
Country Exposure (by currency of settlement)
1
Portfolio Portfolio
09/30/2012 12/31/2012
Market Value Weighted (%) Market Value Weighted (%)
% of Cash Currency % of Cash Currency
(settlement currency) Duration
Bonds Equiv.
Exposure
2

(%)
Duration Bonds Equiv.
Exposure
2
(%)
North America 93.0 94.6 36.4 0.1 92.6 92.9 48.7 0.0
Canada 6.6 3.4 0.0 0.1 5.3 3.2 0.0 0.0
United States 86.4 91.2 36.4 0.0 87.3 89.7 48.7 0.0
Europe - EMU 1.8 6.1 0.0 0.0 3.2 7.5 0.7 0.0
Germany -1.0 -0.5 0.0 - -0.8 -0.5 0.0 -
Ireland 0.0 0.0 0.1 - 0.0 0.0 0.1 -
Italy 2.5 5.0 0.0 - 3.3 5.7 0.0 -
Luxembourg 0.0 0.0 0.0 - 0.0 0.0 0.1 -
Netherlands 0.1 0.1 0.1 - 0.0 0.1 0.1 -
Spain 0.3 0.5 0.2 - 0.6 1.2 0.0 -
Other
3
-0.1 1.0 -0.4 - 0.1 1.0 0.4 -
United Kingdom 0.8 0.8 0.3 0.0 0.8 0.8 0.3 0.0
Europe - Non-EMU 0.1 0.1 0.0 0.0 0.0 0.0 0.0 0.0
Sweden 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Switzerland 0.1 0.1 0.0 0.0 0.0 0.0 0.0 0.0
Japan 0.0 0.1 3.4 -0.4 0.0 0.0 0.3 -0.5
Asia Pacific ex-Japan 0.1 0.4 0.0 0.0 0.1 0.2 0.0 0.0
Australia 0.1 0.3 0.0 0.0 0.1 0.2 0.0 0.0
Hong Kong 0.0 0.1 0.0 0.0 0.0 0.0 0.0 0.0
Emerging Markets 4.2 3.9 1.4 1.0 3.3 3.6 1.7 1.2
Brazil 1.8 2.1 0.0 0.5 1.4 1.9 0.0 0.6
Mexico 2.4 1.8 1.4 0.6 1.9 1.7 1.7 0.7
Net Liabilities

4
0.0 0.0 -47.5 0.0 0.0 0.0 -56.7 0.0
Total Direct Exposure 100.0 106.0 -6.0 0.8 100.0 105.0 -5.0 0.8
Small allocations may round to zero.
See foonotes in Appendix.
15
Direct Emerging Markets Bond Exposure
PIMCO Total Return Fund
Emerging Markets Exposure (by country of issuer)
9/30/2012 12/31/2012
% of MV % of MV % of % of MV % of MV % of
Cash Equiv.
Bonds Duration Cash Equiv. Bonds Duration
Argentina 0.00 0.01 0.00 0.00 0.01 0.00
Brazil 1.16 3.26 2.60 1.08 3.12 2.07
Chile 0.03 0.11 0.09 0.00 0.08 0.03
China 1.16 0.02 0.04 0.94 0.02 0.03
Colombia 0.00 0.05 0.07 0.00 0.02 0.02
EM Index Products 0.00 1.22 0.04 0.00 1.00 0.02
India 0.00 0.08 0.06 0.00 0.08 0.04
Indonesia 0.00 0.37 0.03 0.00 0.29 0.03
Kazakhstan 0.03 0.02 0.03 0.00 0.01 0.01
Malaysia 0.00 0.01 0.01 0.00 0.01 0.00
Mexico 2.07 2.12 2.84 2.31 1.96 2.13
Panama 0.01 0.01 0.00 0.01 0.01 0.00
Philippines 0.00 0.00 0.00 0.00 0.00 0.00
Russia 0.06 0.79 0.88 0.05 0.57 0.39
South Africa 0.03 0.01 0.02 0.03 0.00 0.00
Turkey 0.00 0.04 0.02 0.00 0.04 0.01
Venezuela 0.00

0.01 0.00 0.00 0.01 0.00
Total Direct Emerging Markets 4.55 8.13 6.73 4.42 7.23 4.78
Small allocations may round to zero.
16
PIMCO Proprietary Portfolio Level Risk Measures
PIMCO Total Return Fund
Risk Measures (yrs) 9/30/2012 12/31/2012 Definitions of Risk Measures:
Interest Rate Exposures:
Effective Duration
Portfolio
4.0
4.8
Benchmark**
4.6
4.7
Bull Market Duration
Portfolio
3.4
4.3
Benchmark**
4.4
4.3
Bear Market Duration
Portfolio
6.3
5.8
Benchmark**
5.0
5.1
Sector Exposures*:

Mortgage Spread Duration
Portfolio
1.8
1.6
Benchmark
0.9
1.1
Corporate Spread Duration
Portfolio
0.6
0.5
Benchmark
1.5
1.5
Emerging Markets Spread Duration
Portfolio
0.5
0.4
Benchmark
0.2
0.2
Swap Spread Duration
Portfolio
-0.4
0.1
Benchmark
0.3
0.3
**Benchmark duration is calculated by PIMCO.
The contribution of swaps to spread duration. Includes the impact of non-swap

instruments such as agencies that are sensitive to swap spreads. For every 1 bp of
swap spread tightening (widening), a portfolio with swap spread duration of 1 year will
rise (fall) in price by 1 bp. A negative swap spread duration indicates that the portfolio
will benefit from widening swap spreads.
The contribution of emerging market bonds to spread duration. For every 1 bp of
emerging market spread tightening (widening), a portfolio with an emerging market
spread duration of 1 year will rise (fall) in price by 1 bp.
A portfolio's price sensitivity to changes in interest rates. An accurate predictor of price
changes only for small, parallel shifts of the yield curve. For every 1 basis point fall
(rise) in interest rates, a portfolio with duration of 1 year will rise (fall) in price by 1 bp.
A portfolio's effective duration after a 50 bp decline in rates. The extent to which a
portfolio's duration exceeds its bull market duration is a gauge of contraction risk.
A portfolio's effective duration after a 50 bp rise in rates. The extent to which a
portfolio's bear market duration exceeds its duration is a gauge of extension risk.
The contribution of corporate bonds to spread duration. For every 1 bp of corporate
spread tightening (widening), a portfolio with corporate spread duration of 1 year will
rise (fall) in price by 1 bp.
The contribution of mortgages to spread duration. For every 1 bp of mortgage spread
tightening (widening), a portfolio with mortgage spread duration of 1 year will rise (fall)
in price by 1 bp.
* As measured by spread duration, which represents a portfolio's price sensitivity to changes in spreads, or yield premiums, that affect the value of bonds that
trade at a spread to Governments. These include mortgage-backed, corporate and emerging market bonds, as well as swaps.
17
Summary of Derivatives
PIMCO Total Return Fund
Derivatives
1
(% of Duration)
9/30/2012 12/31/2012 Characteristics of Derivatives: Control Measures
Government Futures

3.0
1.8
Bond-equivalent exposure included in portfolio
duration. Back long futures positions with high grade,
liquid debt securities.
Other Futures
0.0
0.0
See Government Futures.
Interest Rate Swaps
-21.9
-18.6
Bond-equivalent exposure included in portfolio
duration. Back long swaps positions with high grade,
liquid debt securities.
Credit Default Swaps*
6.6
3.6
Written 12.7
9.2
Purchased -6.1
-5.7
Options
-8.1
1.1
Written -8.1
1.1
Purchased 0.0
0.0
Mortgage Derivatives

0.0
0.1
Bond exposure included in portfolio duration,
convexity, and prepayment risk measures. Use IO's
and PO's in moderation and in an overall portfolio
context.
Money Market Derivatives
5.2
8.3
Futures 4.8 5.7
Interest Rate Swaps 0.5
2.6
* Credit default swaps are shown as percentage of market value to reflect potential default risk.
Used to adjust interest rate exposures and to replicate government bond
positions. Frequently offers the opportunity to outperform government
securities due to cheapness of futures contracts and active management
of the liquid, short duration securities backing the futures.
Used to manage exposures at the short end of the yield curve and
express PIMCO's expectations for future short-term rates. Includes
swaps with duration of 1 year or less, and Eurodollar, Euribor and other
futures based on short-term interest rates.
Includes municipal, mortgage-backed and interest rate swap futures.
Used to manage portfolio duration and/or enhance yield. Includes
securities determined by PIMCO to have potentially less stable duration
characteristics, such as Interest Only strips (IOs), Principal Only strips
(POs), Support Class CMOs and Inverse Floaters. Value will fluctuate as
prepayment speeds respond to rising and falling interest rates.
Includes swaps with duration greater than 1 year. Used to adjust interest
rate and yield curve exposures and substitute for physical securities.
Long swap positions ("receive fixed") increase exposure to long-term

interest rates; short positions ("pay fixed") decrease exposure.
Credit default swaps are used to manage credit exposure without buying
or selling securities outright. Written CDS increase credit exposure
("selling protection"), obligating the portfolio to buy bonds from
counterparties in the event of a default. Purchased CDS decrease
exposure ("buying protection"), providing the right to "put" bonds to the
counterparty in the event of a default.
Bond-equivalent exposure included in portfolio credit
risk measures. Back long exposures with high grade,
liquid debt securities. Continually monitor underlying
credit exposure.
Written options generate income in expected rate scenarios and may
generate capital losses if unexpected interest rate environments are
realized. Purchased options are used to manage interest rate and
volatility exposures. Both written and purchased options will become
worthless at expiration if the underlying instrument does not reach the
strike price of the option.
Bond-equivalent exposure (weighted by probability of
exercise) included in portfolio duration. Back
underlying exposure with high grade, liquid debt
securities.
Bond-equivalent exposure included in portfolio
duration. MM derivatives are not backed by other
assets as they represent short-maturity exposures
and have no deliverable at expiration.
18
December 31, 2012
Cover Page
Risk Disclosures
Summary of Performance Data and Portfolio Statistics

1
2
3
4
5
6
Market Commentary and Market Outlook
Tracking error, a measure of risk, is defined as the standard deviation of the portfolio's excess return vs.the benchmark expressed in percent. The information ratio is defined as the
portfolio's excess return per unit of risk, or tracking error. For example, an information ratio of 1 means that a portfolio manager generates 100 basis points, or one percent of excess
return for every 100 basis points of risk taken.
Standard deviation is a statistical measure of dispersion about an average, which for a mutual fund, depicts how widely the returns varied over a certain period of time.
Distribution yield is calculated by annualizing actual dividends for the month ended on the date shown and dividing by net asset value per share on the last business day of the same
period.
Amounts previously reported as Government Related are now disaggregated and reflected as Treasury, Agency, and Swaps and Liquid Rates. Government – Treasury includes US
Treasury notes, bonds, futures, and inflation-protected securities. Government – Agency includes US agencies, FDIC-guaranteed and government-guaranteed corporate securities,
and supranationals. Swaps and Liquid Rates includes US dollar denominated interest rate swaps, swaptions, options, and other rate related derivatives. Other portfolio derivatives,
where applicable, may be included as part of other sectors based upon their underlying risk characteristics.
Continued
Mortgage bonds are susceptible to risks such as default and prepayment of principal, and taxable at the state and federal levels, while Treasuries are guaranteed by the United States
government and are only taxable at the Federal level. Guarantee does not eliminate market risk. It is important to note that longer maturity bonds have greater volatility and risk when
compared to shorter maturity bonds.
Investment grade corporate bonds are considered among the higher rated in the corporate bond sector. These securities are not guaranteed by the federal government and are thus
more susceptible to default risk. Generally most corporate bonds are taxable at the state and federal level. Treasuries are guaranteed by the United States government and are only
taxable at the Federal level. Guarantee does not eliminate market risk. It is important to note that longer maturity bonds have greater volatility and risk when compared to shorter
maturity bonds.
Important Information - PIMCO Total Return Fund
Past performance is no guarantee of future results. Forecasts are based on proprietary research and should not be interpreted as investment advice or as an offer or solicitation for the
purchase or sale of any financial instrument.
The performance figures presented reflect the total return performance for the stated share class (after fees) and reflect changes in share price and reinvestment of dividend and capital
gain distributions. All periods longer than one year are annualized. The Before Fees performance figures presented herein do not reflect the deduction of the Fund’s total annual operating

expenses, which includes, but is not necessarily limited to, advisory fees, administrative fees, and 12b-1 fees (where applicable). The After Fees performance figures reflect the deduction
of all such fees. Neither Before nor After Fees performance figures reflect any applicable redemption fees, the performance figures would be lower if the fee was applied.
All time periods longer than one year are annualized and returns include reinvestment of dividends, income and capital gains, if any. The Fund can invest a portion of its assets in non-
U.S. securities, which can entail greater risks due to non-U.S. economic and political developments. This risk may be enhanced when investing in Emerging Markets. Investment in a
Fund that invests in high-yield, lower-rated securities, will generally involve greater volatility and risk to principal than investments in higher-rated securities. In an environment where
interest rates may trend upward, rising rates will negatively impact the performance of most bond funds, and fixed income securities held by a fund are likely to decrease in value.
Bond funds and individual bonds with a longer duration (a measure of the expected life of a security) tend to be more sensitive to changes in interest rates, usually making them more
volatile than securities with shorter durations.
The Morningstar Fund Manager of the Decade award is based on risk-adjusted results over the past 10 years (2000-2009), and other considerations, including the strength of the
manager, strategy, and stewardship.
Net cash equivalents includes STIF, CP, ST Government, BAs and CDs, less the amount used to back liabilities such as futures, forwards and unsettled trades. Money Market
Futures/Options include Eurodollar and Euribor futures that are based on short term interest rates and represent short maturity exposures. They are not backed by other assets and
have no deliverable at expiration as they are cash settled. The notional amount of money market futures, captured in the column labeled "% of Market Value", is based on an
annualized 3-month interest rate and follows the industry convention of dividing the notional amount by 4 to reflect the underlying 3-month rate exposure. Money market futures'
contribution to overall portfolio duration is captured in the column labeled "Duration in Yrs" Other includes repurchase agreements, accrued interest and bankers acceptances.
Important Information - PIMCO Total Return Fund December 31, 2012
Market Commentary and Market Outlook, (cont'd)
Portfolio Characteristics and Benchmark Variance
1
Direct Country and Currency Exposure
1
Country exposures reflect the portfolio's effective exposure to non-U.S. markets, inclusive of forward settled holdings. Small allocations may round to zero.
2
3
Other includes swaps and securities issued in euros.
4 Includes liabilities associated with futures, forwards and unsettled trades.
Summary of Derivatives
1
Real Return bonds, more commonly known as Treasury Inflation Protected Securities or TIPS, are issued and guaranteed by the U.S. government at a fixed rate that is adjusted based
on the change of the Non-Seasonally Adjusted Consumer Price Index. Guarantee does not eliminate market risk. TIPS sacrifice some yield for the benefit of inflation protection. It is

important to note that longer maturity bonds have greater volatility and risk when compared to shorter maturity bonds. TIPS are only taxable at the Federal level. Nominal Bonds are
any security issued, both domestic and foreign, that do not have inflation protection. The risks of nominal bonds fluctuate with the characteristics and credit rating of the issuing entity
or government.
Market value data based on percentage of net assets of the mutual fund. Data differs from compliance calculations based on total assets of the mutual fund. All mutual funds are
separately monitored for compliance with prospectus and regulatory requirements. Other includes Yankee/Euro bonds, convertibles and municipal bonds. Net cash equivalents equal
cash equivalents less the amount used to back liabilities such as futures, forwards and unsettled trades.
Includes currency exposure due to non-U.S. holdings, hedging transactions and outright currency transactions. Positive numbers reflect long currency positions relative to base
currency. Allocations may not add to totals due to rounding.
Continued
Treasuries are guaranteed by the United States government and are only taxable at the Federal level. Guarantee does not eliminate market risk. It is important to note that longer
maturity bonds have greater volatility and risk when compared to shorter maturity bonds. Bonds issued by a government outside of the United States that are guaranteed by the issuing
government. Guarantee does not eliminate market risk. It is important to note that longer maturity bonds have greater volatility and risk when compared to shorter maturity bonds. Also,
governments outside of the United States have different credit ratings which directly correlate to the risks associated with securities.
Emerging Market bonds are susceptible to market, credit, currency, liquidity, legal, political, technical and other risks different from, or greater than, the risks of investing in developed
foreign countries.
This Fund may use derivative instruments for hedging purposes or as part of its investment strategy. Use of these instruments may involve certain costs and risks such as liquidity risk,
interest rate risk, market risk, credit risk, management risk and the risk that a fund could not close out a position when it would be most advantageous to do so. Portfolios investing in
derivatives could lose more than the principal amount invested.
High Yield bonds involve greater volatility and risk to principal than investments in higher-rated securities as the issuing entity has a lower credit rating possibly making the security
more susceptible to default. Generally these types of bonds are taxable at the state and federal level.
Bonds issued by a government outside of the United States that are guaranteed by the issuing government. Guarantee does not eliminate market risk. It is important to note that longer
maturity bonds have greater volatility and risk when compared to shorter maturity bonds. Also, governments outside of the United States have different credit ratings which directly
correlate to the risks associated with securities.
Corporate bonds are debt securities issued by a corporation. These securities are not guaranteed by the federal government and are thus more susceptible to default risk. Generally
most corporate bonds are taxable at the state and federal level. Treasuries are guaranteed by the United States government and are only taxable at the Federal level. Guarantee does
not eliminate market risk. It is important to note that longer maturity bonds have greater volatility and risk when compared to shorter maturity bonds.
Municipal bonds are guaranteed by the states in which they are issued. Guarantee does not eliminate market risk. Municipal bonds are not taxable at the Federal level and the issuing
state has the right to demand tax; however, many states forgo tax on municipal bonds to entice investment. Treasuries are guaranteed by the United States government and are only
taxable at the Federal level. Guarantee does not eliminate market risk. It is important to note that longer maturity bonds have greater volatility and risk when compared to shorter
maturity bonds.

Asset backed securities are financial securities backed by a loan, lease or receivables against assets other than real estate and mortgage-backed securities. These securities can be
an alternative to investing in corporate debt.
Important Information - PIMCO Total Return Fund December 31, 2012
Index Descriptions
Citigroup 1- 10 Year Treasury Strips Index represents a composition of outstanding Treasury Bond and Notes with a maturity of at least one year but less than ten years. The index is
rebalanced each month in accordance with underlying Treasury figures and profiles provided as of the previous month- end. The included STRIPS are derived only from bonds in the
Citigroup U. S. Treasury Bond Index, which include coupon strips with less than one year remaining to maturity.
Consumer Price Index (CPI) is an unmanaged index representing the rate of inflation of the U. S. consumer prices as determined by the US Department of Labor Statistics. There can
be no guarantee that the CPI or other indexes will reflect the exact level of inflation at any given time.
JPMorgan GBI Global ex-US FX NY Index Unhedged in USD is an unmanaged index market representative of the total return performance in U.S. dollars on an unhedged basis of
major non-U.S. bond markets - changed to 4PM NY close of exchange markets on 07/01/2004. It is not possible to invest directly in such an unmanaged index.
Barclays U.S. Aggregate Index represents securities that are SEC-registered, taxable, and dollar denominated. The index covers the U.S. investment grade fixed rate bond market,
with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities. These major sectors are subdivided into more specific
indices that are calculated and reported on a regular basis. It is not possible to invest directly in an unmanaged index.
Barclays U.S. TIPS Index is an unmanaged market index comprised of all U.S. Treasury Inflation Protected Securities rated investment grade (Baa3 or better), have at least one year
to final maturity, and at least $250 million par amount outstanding. Performance data for this index prior to 10/97 represents returns of the Lehman Inflation Notes Index.
Federal Funds Rate is the federal rate at which banks borrow reserves from each other. This rate is set by the United States Federal Open Market Committee.
JPMorgan EMBI Global Index is an index that tracks total returns for United States Dollar denominated debt instruments issued by emerging market sovereign and quasi-sovereign
entities. Brady bonds, loans, Eurobonds and local market instruments. This index only tracks the particular region or country. It is not possible to invest directly in this index. (The
benchmark for Emerging Markets Bond Fund was changed from the JPMorgan EMBI + to the JPMorgan EMBI Global on January 1, 2003.)
JPMorgan Emerging Local Markets Index Plus (Unhedged) tracks total returns for local-currency-denominated money market instruments in 22 emerging markets countries with at
least US$10 billion of external trade. It is not possible to invest directly in an unmanaged index.
BofA Merrill Lynch 1-3 Year U.S. Treasury Index is an Unmanaged market index made up of U.S. Treasury issues with maturities from one to three years. It is not possible to invest
directly in such an unmanaged index.
Barclays Long-Term Treasury consists of U.S. Treasury issues with maturities of 10 or more years. It is not possible to invest directly in such an unmanaged index.
Barclays Municipal Bond Index consists of a broad selection of investment-grade general obligation and revenue bonds of maturities ranging from one year to 30 years. It is an
unmanaged index representative of the tax-exempt bond market. The index is made up of all investment grade municipal bonds issued after 12/31/90 having a remaining maturity of at
least one year. It is not possible to invest directly in such an unmanaged index.
Barclays Treasury Index consists of public obligations of the U. S. Treasury with a remaining maturity of one year or more. It is not possible to invest directly in such an unmanaged
index.

Barclays Long Municipal Bond Index is a rules-based, market-value-weighted index engineered for the long-term tax-exempt bond market. It is not possible to invest directly in such an
Unmanaged index.
Barclays U.S. Credit Index is an unmanaged index comprised of publicly issued U. S. corporate and specified foreign debentures and secured notes that meet the specified maturity,
liquidity, and quality requirements. The index includes both corporate and non- corporate sectors. The corporate sectors are Industrial, Utility, and Finance, which include both U. S.
and non- U. S. corporations. The non- corporate sectors are Sovereign, Supranational, Foreign Agency, and Foreign Local Government. To qualify, bonds must be SEC- registered. It
is not possible to invest directly in such an unmanaged index.





























This report includes information as of 12/31/2012 and contains the current opinions of the manager and such opinions are subject to change. This report is
distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy or
investment product. The fund offers different share classes, which are subject to different fees & expenses (which may affect performance), have different
minimum investment requirements and are entitled to different services. PIMCO and YOUR GLOBAL INVESTMENT AUTHORITY are trademarks or
registered trademarks of Allianz Asset Management of America L.P. and Pacific Investment Management Company, respectively, in the United States and
throughout the world. PIMCO advised funds are distributed by PIMCO Investments LLC.



No part of this report may be reproduced in any form, or referred to in any other publication, without express written permission. ©2013, PIMCO.
This material is authorized for use only when preceded or accompanied by the current PIMCO funds prospectus.