Account Managers’ and Account Associates’ Compensation

The following describes the compensation policies for certain field Account Managers and internal Account Associates (for purposes of this disclosure only, individually the “Account Manager or Associate” and collectively the “Account Managers and Associates”) of PIMCO Investments LLC (“PI”).¹

We provide below general information on how Account Managers and Associates are compensated. The compensation plans for our Account Managers and Associates change from time to time. The information provided in this disclosure was last updated on June 13, 2024.

Compensation Components

Compensation for the PI Account Managers and Associates discussed in this disclosure has four main components: base pay, quarterly incentive compensation, an annual discretionary bonus, and certain special bonuses/commissions.

Base Pay

All PI Account Managers and Associates receive some amount of base pay — a predetermined and fixed annual salary paid in bi-weekly installments. From time to time, PI reviews the minimum base salary to confirm it is consistent with a reasonable wage and that there is an appropriate ratio between base salary and the other three compensation components.

Quarterly Incentive Compensation

Account Managers and Associates are eligible to receive quarterly incentive payments for the sale of certain products, including mutual funds, ETFs, interval fund, private funds, and retail separately managed accounts (i.e., wrap accounts). Account Managers and Associates do not receive higher compensation for selling fund classes with distribution fees, for sales at approved firms. Additionally, Account Managers and Associates receive the same incentive compensation for products eligible utilizing the same investment strategy (i.e., Total Return, Short Term, etc.). Account Managers and Associates employed by PI are eligible to receive compensation, ascending by product categorization, with respect to sales based on strategic priorities (which change from time-to-time by PI) and can be adjusted based on achievement of goals and net flows. PI only distributes investment products managed by PIMCO, and accordingly Account Managers and Associates compensation does not distinguish between proprietary and non-proprietary products. PI reserves the right to determine the amount of compensation payable to Account Managers and Associates in its sole discretion.

Annual Discretionary Bonus

Account Managers and Associates are eligible to receive an annual discretionary bonus. The annual discretionary bonus is determined through numerous factors, including a manager’s assessment that takes into consideration the Account Manager’s or Associate’s job and sales performance, both in absolute terms and relative to other Account Managers and Associates, as applicable, as well as PIMCO’s and PI’s performance. PI may use various metrics to assess or compare the job performance of Account Managers and Associates. Such metrics generally are indicative of the Account Manager’s or Associate’s success in the areas of, among others, financial advisor satisfaction and the Account Manager’s or Associate’s product knowledge, responsiveness, and effectiveness. Annual discretionary bonuses may form a significant part of an Account Manager’s or Associate’s overall compensation. Additional information regarding annual discretionary bonuses is included under “Potential Conflicts of Interest” below.

Other Compensation

From time-to-time PI Account Managers and Associates may receive special bonuses, including monthly bonuses, or other rewards in connection with PI incentive programs that reward certain performance-related metrics. Account Managers and Associates may receive commissions from the sale of other products, including closed-end funds, whose commission rates may be higher than those product types noted above.

Potential Conflicts of Interest

As described above, PI Account Managers and Associates are eligible to receive compensation, in addition to their base pay, which could represent a significant portion of an Account Manager’s and Associate’s compensation. A factor that is evaluated in determining such compensation is the Account Manager’s or Associate’s success in marketing and selling products distributed by PI. Account Managers and Associates may have a financial incentive to offer certain types of products to you, the financial professional, and the offering of such products may be considered, among other factors, in the assessment of an Account Manager’s or Associate’s performance.

As described above, Account Managers and Associates who offer certain products may receive compensation as a direct or indirect result of a financial professional’s selection of those products, which could represent a significant portion of an Account Manager’s or Associate’s compensation; an Account Manager’s quarterly bonus could be reduced depending on the size of a transaction or transactions and the composition of the Account Manager’s net sales for the year-to-date period. This compensation may be more than what the Account Manager or Associate would receive if the financial professional had selected other products. Therefore, Account Managers and Associates may have a financial incentive to offer certain products. For example, Alternatives Strategies offer higher compensation than Active ETFs, which offer higher compensation than Strategic Strategies, and so on, as noted above. Under policies applicable to all Account Managers and Associates, no Account Manager or Associate is permitted to promote, recommend, or solicit the sale of one product over another solely because that product will provide higher revenue or compensation to the Account Manager or Associate, PI, or PIMCO. Please review all product materials and disclosures before selecting an investment product.

¹ PI is an affiliate of, and exclusively distributes the investment products managed by, Pacific Investment Management Company LLC (“PIMCO”). ↩