The duration ranges
we consider are 1 to 3, 4 to 6, 7 to 9, l0 to 12, 13 to 15, 16 to 18, and more than 18 months.
As a result of this extension, the Fund's benchmark duration has increased over the years and now has reached the upper limit of the Fund's permitted duration range
In the current environment, we see the most interesting proposition in the duration range
around which the curve twist occurs, which is 3.
Each Fund's sub-adviser, Pacific Investment Management Company LLC ("PIMCO"), recommended expanding each Fund's average portfolio duration range
to provide added flexibility in managing interest rate risk within the Funds' portfolios in what PIMCO anticipates to be a potentially prolonged period of rising market interest rates.
The Fund's active management and wide portfolio duration range
allows it to act nimbly during various interest rate environments in an effort to protect investors.