PIMCO Funds. Important Information Related to the PIMCO Short Asset Investment Fund (the Fund )

Transcription

1 PIMCO Funds Supplement Dated June 15, 2018 to the Short Duration Strategy Funds Prospectus dated July 28, 2017, as supplemented from time to time; and to the Statement of Additional Information dated July 28, 2017, as supplemented from time to time Important Information Related to the PIMCO Short Asset Investment Fund (the Fund ) Effective August 1, 2018, the contractual advisory fee waiver for the Fund will automatically renew for a one-year term according to its terms and will decrease from 0.07% to 0.03% of the average daily net assets of the Fund. Investors Should Retain This Supplement for Future Reference PIMCO_SUPP1_061518

2 PIMCO Funds Supplement Dated June 15, 2018 to the Quantitative Strategies Prospectus dated July 28, 2017, as supplemented from time to time; and to the Statement of Additional Information dated July 28, 2017, as supplemented from time to time Important Information Related to the PIMCO TRENDS Managed Futures Strategy Fund (the Fund ) Effective August 1, 2018, the contractual advisory fee waiver for the Fund will automatically renew for a one-year term according to its terms and will decrease from 0.25% to 0.15% of the average daily net assets of the Fund. Investors Should Retain This Supplement for Future Reference PIMCO_SUPP2_061518

3 PIMCO Funds Supplement Dated June 15, 2018 to the PIMCO Credit Bond Funds Prospectus dated July 28, 2017, as supplemented from time to time; and to the Statement of Additional Information dated July 28, 2017, as supplemented from time to time Important Information Related to the PIMCO Low Duration Income Fund (the Fund ) The Fund s current contractual advisory fee waiver of 0.05% of the average daily net assets of the Fund, in effect through July 31, 2018, will not be renewed. Investors Should Retain This Supplement for Future Reference PIMCO_SUPP3_061518

4 PIMCO Funds Supplement Dated May 30, 2018 to the Asset Allocation Funds, Bond Funds, Credit Bond Funds, Equity-Related Strategy Funds, International Bond Funds, Real Return Strategy Funds, Short Duration Strategy Funds, Tax-Efficient Strategy Funds, and Quantitative Strategy Fund Prospectuses (the Prospectus ) and Statement of Additional Information ( SAI ), each dated July 28, 2017, each as supplemented from time to time Automatic Conversion of Certain Class C Shares to Class A Shares Conversion. At a meeting held on May 15, 2018, for each series of PIMCO Funds (the Trust ) that offers Class C shares (each, a Fund ), the Board of Trustees of the Trust approved the automatic conversion of the Fund s Class C shares held in Orphaned Accounts, as defined below, into Class A shares of the same Fund. Certain shareholder accounts are maintained with the Trust s transfer agent ( TA ) and list a broker-dealer of record ( Prior Broker-Dealer of Record ) other than PIMCO Investments LLC ( PI ), and if, subsequently, such Prior Broker-Dealer of Record resigns from the account resulting in such account being held directly with the Trust and PI becoming the default dealer of record for such account, then such account would be referred to as an Orphaned Account. Mechanics. The conversion will be effective on July 30, 2018 ( Conversion Effective Date ). Class C shares of a Fund held in an Orphaned Account that became an Orphaned Account prior to the Conversion Effective Date will convert to Class A shares of the same Fund on the Conversion Effective Date; Class C shares of a Fund held in an Orphaned Account that became an Orphaned Account on or after the Conversion Effective Date will convert to Class A shares of the same Fund promptly upon PI being named default dealer of record after the resignation of the Prior Broker-Dealer of Record. Orphaned Account shareholders holding Class C shares will not pay any sales charge, fee or other charge in connection with the conversion. Upon the conversion, such Class C shares will be subject to the management fees and distribution and/or service fees charged to Class A shares, which will be equivalent to or less than those charged to Class C shares. In addition, following the conversion, any series of the Trust may sell its Class A shares at net asset value without a sales charge to Orphaned Account holders for purchase in such account for so long as PI remains the default dealer of record for such account. Other Alternatives. At any time prior to the Conversion Effective Date, Class C shareholders may exchange their Class C shares directly for shares of another class of the same Fund, subject to any applicable sales charge and other rules, or redeem their Class C shares and receive the net asset value thereof, pursuant to the procedures set forth under Purchases, Redemptions and Exchanges Redeeming Shares in the Prospectus. U.S. Federal Income Tax Matters. The automatic conversion of a Fund s Class C shares held in an Orphaned Account into Class A shares is not expected to be a taxable event for federal income tax purposes and should not result in the recognition of gain or loss by such converting shareholders. Shareholders should consult their tax advisers regarding the tax treatment of the conversion. If you have any questions regarding the conversion, please contact the Trust at

5 Sales at Net Asset Value In addition, effective July 30, 2018, the Distribution of Trust Shares Purchases, Exchanges and Redemptions Sales at Net Asset Value section of the SAI is deleted in its entirety and replaced with the following: Sales at Net Asset Value. Each Fund may sell its Class A shares at net asset value without a sales charge to: (i) current, retired, or former officers, trustees, directors or employees of any of the Trust (including accounts established for former employees or extended family of former employees established while employed), PIMCO Equity Series, Allianz Funds, or Allianz Funds Multi-Strategy Trust, Allianz, Allianz Global Investors U.S. LLC, PIMCO or the Distributor, other affiliates of Allianz Global Investors U.S. LLC and funds advised or subadvised by any such affiliates, in any case at the discretion of PIMCO or the Distributor; their spouse or domestic partner, as recognized by applicable state law, children, siblings, current brother/sister-in-laws, parents, and current father/mother-in-laws ( extended family ), or family trust account for their benefit, or any trust, profit-sharing or pension plan for the benefit of any such person; (ii) current registered representatives and other full-time employees of broker-dealers that have selling agreements with the Distributor or such persons spouse or domestic partner, as recognized by applicable state law, children under 21, and family trust accounts; (iii) trustees or other fiduciaries purchasing shares through certain group omnibus plans (such as 401(k), 403(b), Health Savings Accounts, 457, Profit Sharing/Keogh, Money Purchase Pension and Defined Benefit; not including individual participant directed accounts (i.e., accounts listed in the Fund s records as for the benefit of a named individual), SEP-IRAs, SIMPLE IRAs, SARSEP IRAs and 403(b)7 custodial accounts) sponsored by employers, professional organizations or associations, or charitable organizations that qualify for 501(c)(3) status under the Internal Revenue Code; (iv) investors rolling over assets from specified benefit plans to IRAs or other qualified retirement plan accounts if such assets were invested in the Funds or series of PIMCO Equity Series at the time of distribution; (v) participants investing through accounts known as wrap accounts established with broker-dealers approved by the Distributor where such broker-dealers are paid a single, inclusive fee for brokerage and investment management services; (vi) client accounts of broker-dealers or registered investment advisers affiliated with such broker-dealers (i) with which the Distributor or PIMCO has an agreement for the use of Class A shares of a Fund in particular investment products or programs or in particular situations in which the broker-dealer will make Class A shares available for purchase at NAV or (ii) that, prior to the conversion of Class D shares to Class A shares, offered Class D shares of a Fund in particular investment products or programs or in particular situations and that offers Class A shares of the Fund following the Class D to Class A share class conversion in such investment products or programs or in particular situations; (vii) accounts for which the company that serves as trustee or custodian either (a) is affiliated with PIMCO or (b) has a specific agreement to serve as trustee or custodian of the account with the Distributor; (viii) investors following the public announcement of the Board s approval of a plan of liquidation for such Fund or for another share class of such Fund until the liquidation date; (ix) investors exchanging proceeds of required minimum distributions from an IRA or other qualified retirement plan account invested in a PIMCO fund to a taxable account invested in a PIMCO fund;

6 (x) investors making an exchange from a taxable account invested in a PIMCO fund to a PIMCO fund held in an IRA or other qualified retirement plan account for the purpose of making a contribution to the IRA or other qualified retirement plan account; (xi) investors (i) acquiring Class A shares of a Fund as a result of any automatic conversion of their shares of another class of the Fund into Class A shares; (ii) making a subsequent purchase of Class A shares following the automatic conversion of their Class D shares to Class A shares in the same account where such investors previously were able to purchase Class D shares; or (iii) making a purchase of Class A shares of any Fund in an account maintained directly with the Trust s transfer agent where the Distributor has become the default dealer of record for such account following the prior broker-dealer of record s resignation and the subsequent conversion of Class C shares held in the account to Class A shares, pursuant to the conversion feature described herein and for so long as the Distributor remains the default dealer of record for such account; and (xii) any other person if the Distributor anticipates that there will be minimal cost borne by the Distributor associated with the sale, which shall be determined in the sole discretion of the Distributor. The Distributor will only pay service fees and will not pay any initial commission or other fees to broker-dealers upon the sale of Class A shares to the purchasers described in sub-paragraphs (i) through (xii) above. In addition, the Distributor will only pay distribution and service fees and will not pay any initial commission or other fees to broker-dealers upon the sale of Class C shares of any Fund following the public announcement of the Board s approval of a plan of liquidation for such Fund. Investors Should Retain This Supplement For Future Reference PIMCO_SUPP1_053018

7 PIMCO Funds Supplement dated May 25, 2018 to the Statement of Additional Information dated July 28, 2017, as supplemented (the SAI ) Disclosure Regarding the PIMCO Emerging Markets Corporate Bond Fund Effective immediately, the PIMCO Emerging Markets Corporate Bond Fund is jointly managed by Kofi Bentsi, Mohit Mittal and Yacov Arnopolin. Accordingly, effective immediately, corresponding changes are made in the table and accompanying footnotes in the subsection titled Portfolio Managers Other Accounts Managed in the SAI. In addition, effective immediately, the following sentence is added to the end of the paragraph immediately preceding the above table: Effective May 25, 2018, the PIMCO Emerging Markets Corporate Bond Fund is jointly managed by Kofi Bentsi, Mohit Mittal and Yacov Arnopolin. In addition, effective immediately, corresponding changes are made in the table and accompanying footnotes in the subsection titled Portfolio Managers Securities Ownership in the SAI. Investors Should Retain This Supplement for Future Reference PIMCO_SUPP2_052518

8 PIMCO Funds Supplement dated May 21, 2018 to the Real Return Strategy Funds Prospectus, dated July 28, 2017, as supplemented from time to time (the Prospectus ); and to the Statement of Additional Information dated July 28, 2017, as supplemented from time to time (the SAI ) Disclosure Related to the PIMCO Real Return Limited Duration Fund (the Fund ) The Board of Trustees of PIMCO Funds (the Trust ) has approved a Plan of Liquidation for the Fund pursuant to which the Fund will be liquidated (the Liquidation ) on or about July 30, 2018 ( Liquidation Date ). This date may be changed without notice at the discretion of the Trust s officers. Suspension of Sales. Effective July 2, 2018, the Fund will no longer sell shares to new investors or existing shareholders (except through reinvested dividends), including through exchanges into the Fund from other funds of the Trust or funds of PIMCO Equity Series. The Fund may deviate from its investment objective at any time prior to the Liquidation Date. Mechanics. In connection with the Liquidation, any shares of the Fund outstanding on the Liquidation Date will be automatically redeemed as of the close of business on the Liquidation Date. The proceeds of any such redemption will be equal to the net asset value of such shares after the Fund has paid or provided for all of its charges, taxes, expenses and liabilities, including certain operational costs of liquidating the Fund. The distribution to shareholders of these liquidation proceeds will occur as soon as practicable, and will be made to all Fund shareholders of record at the time of the Liquidation. Additionally, the Fund must declare and distribute to shareholders any realized capital gains and all net investment income no later than the final Liquidation distribution. Pacific Investment Management Company LLC ( PIMCO ), investment adviser to the Fund, intends to distribute substantially all of the Fund s net investment income prior to the Liquidation. PIMCO will bear all operational expenses associated with the Liquidation pursuant to the Second Amended and Restated Supervision and Administration Agreement between the Trust and PIMCO. Other Alternatives. At any time prior to the Liquidation Date, shareholders of the Fund may redeem their shares of the Fund and receive the net asset value thereof, pursuant to the procedures set forth under Purchases, Redemptions and Exchanges Redeeming Shares in the Prospectus. Shareholders may also exchange their Fund shares for shares of the same class of any other fund of the Trust or any fund of PIMCO Equity Series that offers that class, as described in and subject to any restrictions set forth under Purchases, Redemptions and Exchanges Exchanging Shares in the Prospectus. U.S. Federal Income Tax Matters. Although the Liquidation is not expected to be a taxable event for the Fund, for taxable shareholders, the automatic redemption of shares of the Fund on the Liquidation Date will generally be treated as any other redemption of shares, i.e., as a sale that may result in a gain or loss for federal income tax purposes. Instead of waiting until the Liquidation Date, a shareholder may voluntarily redeem his or her shares prior to the Liquidation Date to the extent that the shareholder wishes to realize any such gains or losses prior thereto. See Tax Consequences in the Prospectus. Shareholders should consult their tax advisers regarding the tax treatment of the Liquidation. If you have any questions regarding the Liquidation, please contact the Trust at Investors Should Retain This Supplement For Future Reference PIMCO_SUPP1_052118

9 PIMCO Funds Supplement dated May 18, 2018 to the Bond Funds Prospectus (the Prospectus ), and to the Statement of Additional Information (the SAI ), each dated July 28, 2017, each as supplemented from time to time Disclosure Related to the PIMCO GNMA Fund, PIMCO Investment Grade Corporate Bond Fund, PIMCO Mortgage Opportunities Fund, and PIMCO Unconstrained Bond Fund (each, a Fund ) IMPORTANT NOTICE REGARDING CHANGES IN EACH S NAME AND, FOR CERTAIN S, CHANGES IN NON-AMENTAL INVESTMENT POLICY AND PRINCIPAL INVESTMENT STRATEGIES PIMCO GNMA Fund Effective July 30, 2018, all references to the Fund s name in the Prospectus and the SAI are deleted and replaced with the following: PIMCO GNMA and Government Securities Fund In addition, effective July 30, 2018, the first sentence of the Principal Investment Strategies section of the Fund s Fund Summary in the Prospectus is deleted in its entirety and replaced with the following: The Fund seeks to achieve its investment objective by investing under normal circumstances at least 80% of its assets in a diversified portfolio of securities of varying maturities issued by the Government National Mortgage Association ( GNMA ) and of securities issued or guaranteed by the U.S. Government, its agencies or government-sponsored enterprises, which may be represented by forwards or derivatives such as options, futures contracts or swap agreements. In addition, effective July 30, 2018, non-fundamental investment policy number 1, listed in the second paragraph of the Investment Restrictions Non-Fundamental Investment Restrictions section in the SAI, is deleted in its entirety and replaced with the following: 1. The PIMCO GNMA and Government Securities Fund will invest, under normal circumstances, at least 80% of its assets in GNMA investments and U.S. government securities. PIMCO Investment Grade Corporate Bond Fund Effective July 30, 2018, all references to the Fund s name in the Prospectus and the SAI are deleted and replaced with the following: PIMCO Investment Grade Credit Bond Fund In addition, effective July 30, 2018, the first two sentences of the Principal Investment Strategies section of the Fund s Fund Summary in the Prospectus are deleted in their entirety and replaced with the following: The Fund seeks to achieve its investment objective by investing under normal circumstances at least 80% of its assets in a diversified portfolio of investment grade fixed income securities of varying maturities, which may be represented by forwards or derivatives such as options, futures contracts or swap agreements. Assets not invested in investment grade fixed income securities may be invested in other types of Fixed Income Instruments. In addition, effective July 30, 2018, non-fundamental investment policy number 3, listed in the second paragraph of the Investment Restrictions Non-Fundamental Investment Restrictions section in the SAI, is deleted in its entirety and replaced with the following: 3. The PIMCO Investment Grade Credit Bond Fund will invest, under normal circumstances, at least 80% of its assets in investment grade fixed income investments.

10 PIMCO Mortgage Opportunities Fund Effective July 30, 2018, all references to the Fund s name in the Prospectus and the SAI are deleted and replaced with the following: PIMCO Mortgage Opportunities and Bond Fund In addition, effective July 30, 2018, the first paragraph of the Principal Investment Strategies section of the Fund s Fund Summary in the Prospectus is deleted in its entirety and replaced with the following: The Fund seeks to achieve its investment objective by investing under normal circumstances at least 80% of its assets in a portfolio of mortgage-related assets, including, but not limited to Agency residential and commercial mortgage-backed securities ( MBS ) and private label residential and commercial MBS, and of Fixed Income Instruments, which may be represented by forwards or derivatives such as options, futures contracts or swap agreements. Agency MBS refers to MBS issued by government-sponsored enterprises, such as the Government National Mortgage Association ( GNMA or Ginnie Mae ), the Federal National Mortgage Association ( FNMA or Fannie Mae ) or the Federal Home Loan Mortgage Corporation ( FHLMC or Freddie Mac ). Fixed Income Instruments include bonds, debt securities and other similar instruments issued by various U.S. and non-u.s. public- or private-sector entities. The Fund will invest in a broad array of mortgage-related securities in seeking to generate consistent, absolute returns across full market cycles. The average portfolio duration of this Fund normally varies from (negative) 1 year to positive 8 years based on PIMCO s market forecasts. Duration is a measure used to determine the sensitivity of a security s price to changes in interest rates. The longer a security s duration, the more sensitive it will be to changes in interest rates. In addition, effective July 30, 2018, non-fundamental investment policy number 2, listed in the second paragraph of the Investment Restrictions Non-Fundamental Investment Restrictions section in the SAI, is deleted in its entirety and replaced with the following: 2. The PIMCO Mortgage-Backed Securities Fund will invest, under normal circumstances, at least 80% of its assets in mortgage investments. In addition, effective July 30, 2018, the following is added to the non-fundamental investment policies listed in the second paragraph of the Investment Restrictions Non-Fundamental Investment Restrictions section in the SAI: 19. The PIMCO Mortgage Opportunities and Bond Fund will invest, under normal circumstances, at least 80% of its assets in mortgage investments and Fixed Income Instrument investments. PIMCO Unconstrained Bond Fund Effective July 30, 2018, all references to the Fund s name in the Prospectus and the SAI are deleted and replaced with the following: PIMCO Dynamic Bond Fund Investors Should Retain This Supplement for Future Reference PIMCO_SUPP1_051818

11 PIMCO Funds Supplement dated May 18, 2018 to the Credit Bond Funds Prospectus (the Prospectus ), and to the Statement of Additional Information (the SAI ), each dated July 28, 2017, each as supplemented from time to time Disclosure Related to the PIMCO Long-Term Credit Fund and the PIMCO Credit Absolute Return Fund (each, a Fund ) IMPORTANT NOTICE REGARDING CHANGES IN EACH S NAME PIMCO Long-Term Credit Fund Effective July 30, 2018, all references to the Fund s name in the Prospectus and the SAI are deleted and replaced with the following: PIMCO Long-Term Credit Bond Fund PIMCO Credit Absolute Return Fund Effective July 30, 2018, all references to the Fund s name in the Prospectus and the SAI are deleted and replaced with the following: PIMCO Credit Opportunities Bond Fund Investors Should Retain This Supplement for Future Reference PIMCO_SUPP2_051818

12 PIMCO Funds Supplement dated May 18, 2018 to the Equity-Related Strategy Funds Prospectus (the Prospectus ), and to the Statement of Additional Information (the SAI ), each dated July 28, 2017, each as supplemented from time to time Disclosure Related to the PIMCO RAE Fundamental PLUS EMG Fund, PIMCO RAE Fundamental PLUS Fund, PIMCO RAE Fundamental PLUS International Fund, and PIMCO RAE Fundamental PLUS Small Fund (each, a Fund ) IMPORTANT NOTICE REGARDING CHANGES IN EACH S NAME Effective July 30, 2018, all references to the PIMCO RAE Fundamental PLUS EMG Fund s name in the Prospectus and the SAI are deleted and replaced with the following: PIMCO RAE PLUS EMG Fund Effective July 30, 2018, all references to the PIMCO RAE Fundamental PLUS Fund s name in the Prospectus and the SAI are deleted and replaced with the following: PIMCO RAE PLUS Fund Effective July 30, 2018, all references to the PIMCO RAE Fundamental PLUS International Fund s name in the Prospectus and the SAI are deleted and replaced with the following: PIMCO RAE PLUS International Fund Effective July 30, 2018, all references to the PIMCO RAE Fundamental PLUS Small Fund s name in the Prospectus and the SAI are deleted and replaced with the following: PIMCO RAE PLUS Small Fund Investors Should Retain This Supplement for Future Reference PIMCO_SUPP3_051818

13 PIMCO Funds Supplement dated May 18, 2018 to the International Bond Funds Prospectus (the Prospectus ), and to the Statement of Additional Information (the SAI ), each dated July 28, 2017, each as supplemented from time to time Disclosure Related to the PIMCO Foreign Bond Fund (U.S. Dollar-Hedged), PIMCO Foreign Bond Fund (Unhedged), PIMCO Emerging Markets Currency Fund, PIMCO Global Bond Fund (U.S. Dollar-Hedged) and PIMCO Global Bond Fund (Unhedged) (each, a Fund ) IMPORTANT NOTICE REGARDING CHANGES IN EACH S NAME AND, FOR CERTAIN S, CHANGES IN NON-AMENTAL INVESTMENT POLICY AND PRINCIPAL INVESTMENT STRATEGIES PIMCO Foreign Bond Fund (U.S. Dollar-Hedged) Effective July 30, 2018, all references to the Fund s name in the Prospectus and the SAI are deleted and replaced with the following: PIMCO International Bond Fund (U.S. Dollar-Hedged) In addition, effective July 30, 2018, the first paragraph of the Principal Investment Strategies section of the Fund s Fund Summary in the Prospectus is deleted in its entirety and replaced with the following: The Fund seeks to achieve its investment objective by investing under normal circumstances at least 80% of its assets in Fixed Income Instruments. The Fund will invest under normal circumstances in Fixed Income Instruments that are economically tied to at least three non-u.s. countries. The Fund s investments in Fixed Income Instruments may be represented by forwards or derivatives such as options, futures contracts or swap agreements. Fixed Income Instruments include bonds, debt securities and other similar instruments issued by various U.S. and non-u.s. public- or private-sector entities. The Fund will normally limit its foreign currency exposure (from non-u.s. dollar-denominated securities or currencies) to 20% of its total assets. PIMCO Foreign Bond Fund (Unhedged) Effective July 30, 2018, all references to the Fund s name in the Prospectus and the SAI are deleted and replaced with the following: PIMCO International Bond Fund (Unhedged) In addition, effective July 30, 2018, the first paragraph of the Principal Investment Strategies section of the Fund s Fund Summary in the Prospectus is deleted in its entirety and replaced with the following: The Fund seeks to achieve its investment objective by investing under normal circumstances at least 80% of its assets in Fixed Income Instruments. The Fund will invest under normal circumstances in Fixed Income Instruments that are economically tied to at least three non-u.s. countries. The Fund s investments in Fixed Income Instruments may be represented by forwards or derivatives such as options, futures contracts or swap agreements. Fixed Income Instruments include bonds, debt securities and other similar instruments issued by various U.S. and non-u.s. public- or private-sector entities.

14 PIMCO Foreign Bond Fund (U.S. Dollar-Hedged) and PIMCO Foreign Bond Fund (Unhedged) In addition, effective July 30, 2018 non-fundamental investment policy number 7, listed in the second paragraph of the Investment Restrictions Non-Fundamental Investment Restrictions section in the SAI, is deleted in its entirety and replaced with the following: 7. Each of the PIMCO International Bond Fund (Unhedged) and PIMCO International Bond Fund (U.S. Dollar-Hedged) will invest, under normal circumstances, at least 80% of its assets in bond investments. PIMCO Emerging Markets Currency Fund Effective July 30, 2018, all references to the Fund s name in the Prospectus and the SAI are deleted and replaced with the following: PIMCO Emerging Markets Currency and Short-Term Investments Fund In addition, effective July 30, 2018, the first paragraph of the Principal Investment Strategies section of the Fund s Fund Summary in the Prospectus is deleted in its entirety and replaced with the following: The Fund seeks to achieve its investment objective by investing under normal circumstances at least 80% of its assets in currencies of, or in Fixed Income Instruments denominated in the currencies of, emerging market countries, and in short-term investments. The Fund s investments in currencies or Fixed Income Instruments, including short-term investments, may be represented by forwards or derivatives such as options, futures contracts or swap agreements. The Fund may, but is not required to, hedge its exposure to non-u.s. currencies. Assets not invested in currencies or instruments denominated in currencies of emerging market countries or in short-term investments may be invested in other types of Fixed Income Instruments. Fixed Income Instruments include bonds, debt securities and other similar instruments issued by various U.S. and non-u.s. public- or private-sector entities. In addition, effective July 30, 2018, the following is added after the third sentence of the third paragraph of the Principal Investment Strategies section of the Fund s Fund Summary in the Prospectus: In addition, the dollar-weighted average maturity of the portion of the Fund s portfolio comprised of short-term investments, under normal circumstances, is expected not to exceed three years. In addition, effective July 30, 2018 non-fundamental investment policy number 9, listed in the second paragraph of the Investment Restrictions Non-Fundamental Investment Restrictions section in the SAI, is deleted in its entirety and replaced with the following: 9. The PIMCO Emerging Markets Currency and Short-Term Investments Fund will invest under normal circumstances at least 80% of its assets in currencies of, or Fixed Income Instruments denominated in the currencies of, emerging market countries and in short-term investments. PIMCO Global Bond Fund (U.S. Dollar-Hedged) Effective July 30, 2018, all references to the Fund s name in the Prospectus and the SAI are deleted and replaced with the following: PIMCO Global Bond Opportunities Fund (U.S. Dollar-Hedged)

15 PIMCO Global Bond Fund (Unhedged) Effective July 30, 2018, all references to the Fund s name in the Prospectus and the SAI are deleted and replaced with the following: PIMCO Global Bond Opportunities Fund (Unhedged) Investors Should Retain This Supplement for Future Reference PIMCO_SUPP4_051818

16 PIMCO Funds Supplement dated May 18, 2018 to the Real Return Strategy Funds Prospectus (the Prospectus ), and to the Statement of Additional Information (the SAI ), each dated July 28, 2017, each as supplemented from time to time Disclosure Related to the PIMCO Real Return Asset Fund (the Fund ) IMPORTANT NOTICE REGARDING CHANGES IN THE S NAME AND PRINCIPAL INVESTMENT STRATEGIES Effective July 30, 2018, all references to the Fund s name in the Prospectus and the SAI are deleted and replaced with the following: PIMCO Long-Term Real Return Fund In addition, effective July 30, 2018, the following is added to the Principal Investment Strategies section of the Fund s Fund Summary in the Prospectus after the last sentence of the first paragraph: In addition, the dollar-weighted average portfolio maturity of the Fund, under normal circumstances, is expected to be more than ten years. Investors Should Retain This Supplement for Future Reference PIMCO_SUPP5_051818

17 PIMCO Funds Supplement dated May 18, 2018 to the Tax-Efficient Strategy Funds Prospectus (the Prospectus ), and to the Statement of Additional Information (the SAI ), each dated July 28, 2017, each as supplemented from time to time Disclosure Related to the PIMCO Unconstrained Tax Managed Bond Fund (the Fund ) IMPORTANT NOTICE REGARDING CHANGES IN NAME, NON-AMENTAL INVESTMENT OBJECTIVE, PRINCIPAL INVESTMENT STRATEGIES, PRINCIPAL RISKS, BENCHMARK AND PORTFOLIO MANAGER Effective July 30, 2018, all references to the Fund s name in the Prospectus and the SAI are deleted and replaced with the following: PIMCO Strategic Bond Fund In addition, effective July 30, 2018, the Investment Objective section of the Fund s Fund Summary in the Prospectus is deleted in its entirety and replaced with the following: The Fund seeks maximum long-term return, consistent with preservation of capital and prudent investment management. In addition, effective July 30, 2018, the Principal Investment Strategies section of the Fund s Fund Summary in the Prospectus is deleted in its entirety and replaced with the following: The Fund seeks to achieve its investment objective by investing under normal circumstances at least 80% of its assets in a diversified portfolio of Fixed Income Instruments of varying maturities, which may be represented by forwards or derivatives such as options, futures contracts, or swap agreements. Fixed Income Instruments include bonds, debt securities and other similar instruments issued by various U.S. and non-u.s. public- or private-sector entities. The Fund intends to utilize various investment strategies in a broad array of fixed income sectors to achieve its investment objective. The Fund will not be constrained by management against an index. The average portfolio duration of this Fund will normally vary from (negative) 1 year to positive 5 years based on Pacific Investment Management Company LLC s ( PIMCO ) market forecasts. Duration is a measure used to determine the sensitivity of a security s price to changes in interest rates. The longer a security s duration, the more sensitive it will be to changes in interest rates. The Fund may seek to manage capital gain distributions by, among other things, attempting to use losses from sales of securities that have declined in price to offset gains that would otherwise be taxable subject to maintenance of the portfolio investment strategy. However, such strategy may be unsuccessful or only partially successful and the Fund may realize taxable gains. For example, the Fund may realize taxable gains in order to satisfy cash redemption requests or when PIMCO believes the benefits of a transaction resulting in the realization of taxable gains outweigh tax considerations. The Fund may invest in both investment-grade securities and high yield securities ( junk bonds ) subject to a maximum of 20% of its total assets in securities rated below Baa by Moody s Investors Service, Inc. ( Moody s ), or equivalently rated by Standard & Poor s Ratings Services ( S&P ) or Fitch, Inc. ( Fitch ), or, if unrated, determined by PIMCO to be of comparable quality. The Fund may also invest without limitation in securities denominated in foreign currencies and in U.S. dollar-denominated securities of foreign issuers. The Fund may invest up to 30% of its total assets in securities and instruments that are economically tied to emerging market countries (this limitation does not apply to investment grade sovereign debt denominated in the local currency with less than 1 year remaining to maturity, which means the Fund may invest in such instruments without limitation subject to any applicable legal or regulatory limitation). The Fund will normally limit its foreign currency exposure (from non-u.s. dollar-denominated securities or currencies) to 25% of its total assets. The Fund may also invest up to 10% of its total assets in preferred securities.

18 The Fund may invest in derivative instruments, such as options, futures contracts or swap agreements, or in mortgage- or asset-backed securities. The Fund may purchase or sell securities on a when-issued, delayed delivery or forward commitment basis and may engage in short sales. The Fund may, without limitation, seek to obtain market exposure to the securities in which it primarily invests by entering into a series of purchase and sale contracts or by using other investment techniques (such as buy backs or dollar rolls). In addition, effective July 30, 2018, the following is added after the first sentence of the Principal Risks section of the Fund s Fund Summary in the Prospectus: Investors should be aware that the investments made by the Fund and the results achieved by the Fund at any given time are not expected to be the same as those made by other funds for which PIMCO acts as investment adviser, including funds with names, investment objectives and policies similar to the Fund. In addition, effective July 30, 2018, Municipal Bond Risk, California State-Specific Risk, New York State- Specific Risk and Municipal Project-Specific Risk in the Principal Risks section of the Fund s Fund Summary in the Prospectus are deleted in their entirety, and corresponding edits are made to the table following the first paragraph of the Description of Principal Risks section in the Prospectus. In addition, effective July 30, 2018, the following is added to the Principal Risks section of the Fund s Fund Summary in the Prospectus immediately following Short Exposure Risk: Tax-Efficient Investing Risk: the risk that investment strategies intended to manage capital gain distributions may not succeed, and that such strategies may reduce investment returns or result in investment losses In addition, effective July , the following is added to the Description of Principal Risks section in the Prospectus immediately following Short Exposure Risk, and corresponding edits are made to the table following the first paragraph of the Description of Principal Risks section in the Prospectus: Tax-Efficient Investing Risk A Fund may engage in investment strategies intended to manage capital gain distributions. For example, a Fund may attempt to use losses from sales of securities that have declined to offset future gains that would otherwise be taxable. Any such strategy may be unsuccessful or only partially successful, and investors may experience adverse tax effects, including, but not limited to potentially greater tax liability than other PIMCO-advised funds. Additionally, such strategies may reduce investment returns or result in investment losses, which could cause the Fund and investors to lose money. Further, a Fund s focus on income generation may result in a higher overall tax liability as income may be taxed at a higher rate than capital gains. In addition, effective July 30, 2018, the following is added after the second paragraph of the Performance Information section of the Fund s Fund Summary in the Prospectus: Effective July 30, 2018, certain changes were made to the Fund s principal investment strategies, including reduced exposure to municipal securities, high yield securities ( junk bonds ), securities and instruments that are economically tied to emerging market countries and foreign currencies, and a more constrained duration guideline. The Fund s performance information prior to July 30, 2018 relates only to the Fund s former principal investment strategies. In addition, effective July , the Fund s broad-based securities market index is the 3 Month USD LIBOR Index. Accordingly, effective July 30, 2018, the first sentence of the second paragraph of the Performance Information section of the Fund s Fund Summary is deleted in its entirety and replaced with the following: Effective July 30, 2018, the Fund s broad-based securities market index is the 3 Month USD LIBOR (London Interbank Offered Rate) Index. The 3 Month USD LIBOR Index is an average interest rate, determined by the ICE Benchmark Administration, that banks charge one another for the use of short-term money (3 months) in England s Eurodollar market. The Fund s new broad-based securities market index was selected as its use is more closely aligned with the Fund s principal investment strategies. Prior to July 30, 2018, the Fund s broadbased securities market index was the 3 Month USD LIBOR After Tax.

19 In addition, effective July 30, 2018, corresponding changes are made to the Average Annual Total Returns Table in the Performance Information section of the Fund s Fund Summary in the Prospectus, and the following is added above the row relating to the 3 Month USD LIBOR After Tax: 3 Month USD LIBOR Index (reflects no deductions for fees, expenses or taxes) 1 Year 5 Years Since Inception (01/30/2009) 0.68% 0.39% 0.43% In addition, effective July 30, 2018, the Fund s portfolio is jointly managed by Marc P. Seidner and Mohit Mittal. Therefore, effective July 30, 2018, the paragraph in the Investment Adviser/Portfolio Manager section of the Fund s Fund Summary in the Prospectus is deleted and replaced with the following: PIMCO serves as the investment adviser for the Fund. The Fund s portfolio is jointly managed by Marc P. Seidner and Mohit Mittal. Mr. Seidner is CIO Non-traditional Strategies and Managing Director of PIMCO, and he has managed the Fund since January Mr. Mittal is a Managing Director of PIMCO and has managed the Fund since July 30, In addition, effective July 30, 2018, disclosure concerning the portfolio managers of the Fund in the table in the Management of the Funds Individual Portfolio Managers section of the Prospectus is deleted and replaced with the following: Fund Portfolio Manager Since Recent Professional Experience PIMCO Strategic Bond Mohit Mittal 7/18 Managing Director, PIMCO. He manages investment grade credit, total return and unconstrained bond portfolios and is a member of the Americas Portfolio Committee. Previously, he was a specialist on PIMCO s interest rates and derivatives desk. Mr. Mittal joined PIMCO in 2007 and holds an MBA in finance from the Wharton School of the University of Pennsylvania and an undergraduate degree in computer science from Indian Institute of Technology (IIT) in Delhi, India. PIMCO Strategic Bond Marc P. Seidner 1/15 CIO Non-traditional Strategies and Managing Director, PIMCO. Mr. Seidner is head of portfolio management in the New York office. He is also a generalist portfolio manager and a member of the Investment Committee. He rejoined PIMCO in November 2014 after serving as head of fixed income at GMO LLC, and previously he was a PIMCO Managing Director, generalist portfolio manager and member of the Investment Committee until January Prior to joining PIMCO in 2009, he was a managing director and domestic fixed income portfolio manager at Harvard Management Company. Previously, he was director of active core strategies at Standish Mellon Asset Management and a senior portfolio manager at Fidelity Management and Research. He has investment experience since 1987 and holds an undergraduate degree in economics from Boston College.

20 In addition, effective July 30, 2018, corresponding changes are made in the table and accompanying footnotes in the subsection titled Portfolio Managers Other Accounts Managed in the SAI. In addition, effective July 30, 2018, the following sentence is added to the end of the paragraph immediately preceding the above table: Effective July 30, 2018, the PIMCO Strategic Bond Fund is jointly managed by Marc P. Seidner and Mohit Mittal. In addition, effective July 30, 2018, corresponding changes are made in the table and accompanying footnotes in the subsection titled Portfolio Managers Securities Ownership in the SAI. Investors Should Retain This Supplement for Future Reference PIMCO_SUPP6_051818

21 PIMCO Funds Supplement dated November 17, 2017 to the Bond Funds Prospectus dated July 28, 2017, as supplemented from time to time (the Prospectus ), and to the Statement of Additional Information dated July 28, 2017, as supplemented from time to time (the SAI ) Disclosure Related to Administrative Class Shares of the PIMCO Moderate Duration Fund and Class P Shares of the PIMCO Total Return Fund IV (each, a Fund and together, the Funds ) The Board of Trustees of PIMCO Funds (the Trust ) has approved a Plan of Liquidation for Administrative Class shares of the PIMCO Moderate Duration Fund and Class P shares of the PIMCO Total Return Fund IV (each, a Liquidating Share Class and together, the Liquidating Share Classes ) pursuant to which the Liquidating Share Class of each Fund will be liquidated (the Liquidations ) on or about January 31, 2018 ( Liquidation Date ). This date may be changed without notice at the discretion of the Trust s officers. Suspension of Sales. Effective January 2, 2018, the Funds will no longer sell shares of the Liquidating Share Classes to new investors or existing shareholders (except through reinvested dividends), including through exchanges into shares of a Liquidating Share Class of a Fund from other funds of the Trust or funds of PIMCO Equity Series. Mechanics. In connection with the Liquidations, any share of a Liquidating Share Class of a Fund outstanding on the Liquidation Date will be automatically redeemed as of the close of business on the Liquidation Date. The proceeds of any such redemption will be equal to the net asset value of such shares after such Fund has paid or provided for all of its charges, taxes, expenses and liabilities attributable to shares of such Liquidating Share Class. The distribution to shareholders of these liquidation proceeds will occur as soon as practicable, and will be made to all shareholders of record of the relevant Liquidating Share Class of such Fund at the time of the Liquidation. PIMCO will bear all operational expenses in connection with the Liquidations pursuant to the Second Amended and Restated Supervision and Administration Agreement between the Trust and PIMCO. Other Alternatives. At any time prior to the Liquidation Date, shareholders of a Liquidating Share Class of a Fund may redeem their shares of such Liquidating Share Class of the Fund and receive the net asset value thereof, pursuant to the procedures set forth under Purchases, Redemptions and Exchanges Redeeming Shares in the Prospectus. At any time prior to the Liquidation Date, shareholders may also exchange their shares of a Liquidating Share Class for shares of the same share class of any other fund of the Trust or any fund of PIMCO Equity Series that offers that class, or for another share class of the same Fund, if eligible, without the payment of any applicable contingent deferred sales charge or front-end sales charge. These exchange privileges are described in and subject to any restrictions set forth under Purchases, Redemptions and Exchanges Exchanging Shares in the Prospectus and Distribution of Trust Shares Purchases, Exchanges and Redemptions in the SAI. U.S. Federal Income Tax Matters. For taxable shareholders of the Liquidating Share Classes, the automatic redemption of shares of a Liquidating Share Class of the Fund on the Liquidation Date will generally be treated as any other redemption of shares, i.e., as a sale that may result in a gain or loss for federal income tax purposes. Instead of waiting until the Liquidation Date, a shareholder of a Liquidating Share Class may voluntarily redeem his or her shares of such Liquidating Share Class prior to the Liquidation Date to the extent that the shareholder wishes to realize any such gains or losses prior thereto. See Tax Consequences in the Prospectus. Shareholders should consult their tax advisers regarding the tax treatment of the Liquidations. If you have any questions regarding the Liquidations, please contact the Trust at Investors Should Retain This Supplement For Future Reference PIMCO_SUPP3_111717

22 PIMCO Funds Supplement dated November 17, 2017 to the Credit Bond Funds Prospectus dated July 28, 2017, as supplemented from time to time (the Prospectus ), and to the Statement of Additional Information dated July 28, 2017, as supplemented from time to time (the SAI ) Disclosure Related to Class C Shares of the PIMCO Capital Securities and Financials Fund (the Fund ) The Board of Trustees of PIMCO Funds (the Trust ) has approved a Plan of Liquidation for Class C shares of the Fund pursuant to which Class C shares of the Fund will be liquidated (the Liquidation ) on or about January 31, 2018 ( Liquidation Date ). This date may be changed without notice at the discretion of the Trust s officers. Suspension of Sales. Effective January 2, 2018, the Fund will no longer sell Class C shares to new investors or existing shareholders (except through reinvested dividends), including through exchanges into Class C shares of the Fund from other funds of the Trust or funds of PIMCO Equity Series. Mechanics. In connection with the Liquidation, any Class C share of the Fund outstanding on the Liquidation Date will be automatically redeemed as of the close of business on the Liquidation Date. The proceeds of any such redemption will be equal to the net asset value of such shares after the Fund has paid or provided for all of its charges, taxes, expenses and liabilities attributable to its Class C shares. The distribution to shareholders of these liquidation proceeds will occur as soon as practicable, and will be made to all Class C shareholders of record of the Fund at the time of the Liquidation. PIMCO will bear all operational expenses in connection with the Liquidation pursuant to the Second Amended and Restated Supervision and Administration Agreement between the Trust and PIMCO. Other Alternatives. At any time prior to the Liquidation Date, Class C shareholders of the Fund may redeem their Class C shares of the Fund and receive the net asset value thereof, pursuant to the procedures set forth under Purchases, Redemptions and Exchanges Redeeming Shares in the Prospectus. At any time prior to the Liquidation Date, shareholders may also exchange their Class C Fund shares for Class C shares of any other fund of the Trust or any fund of PIMCO Equity Series that offers that class, or for another share class of the Fund, if eligible, without the payment of any applicable contingent deferred sales charge or front-end sales charge. These exchange privileges are described in and subject to any restrictions set forth under Purchases, Redemptions and Exchanges Exchanging Shares in the Prospectus and Distribution of Trust Shares Purchases, Exchanges and Redemptions in the SAI. U.S. Federal Income Tax Matters. For taxable Class C shareholders, the automatic redemption of Class C shares of the Fund on the Liquidation Date will generally be treated as any other redemption of shares, i.e., asa sale that may result in a gain or loss for federal income tax purposes. Instead of waiting until the Liquidation Date, a Class C shareholder may voluntarily redeem his or her Class C shares prior to the Liquidation Date to the extent that the shareholder wishes to realize any such gains or losses prior thereto. See Tax Consequences in the Prospectus. Shareholders should consult their tax advisers regarding the tax treatment of the Liquidation. If you have any questions regarding the Liquidation, please contact the Trust at Investors Should Retain This Supplement For Future Reference PIMCO_SUPP4_111717