Annual Report 31 December 2010

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Annual Report 31 December 2010

PIMCO Funds: Global Investors Series plc

An open-ended investment company with variable capital and segregated liability between Funds incorporated with limited liability under the Companies Acts, 1963 to 2006 with registered number 276928 and authorised by the Irish Financial Services Regulatory Authority as an undertaking for collective investment in transferable securities pursuant to the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations, 1989, as amended and subject to the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2003.

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PIMCO Funds: Global Investors Series plc

Annual Report 31 December 2010

G E N E R A L C H A R A C T E R I S T I C S

Fund Type:

UCITS III

Number of Funds offered in Company:

38 Funds

Classes of Shares offered in Company:

Institutional Class

Institutional AUD (Hedged) Class

Institutional CHF (Hedged) Class

Institutional CHF (Unhedged) Class

Institutional EUR (Hedged) Class

Institutional EUR (Unhedged) Class

Institutional GBP (Hedged) Class

Institutional GBP (Unhedged) Class

Institutional ILS (Hedged) Class

Institutional NOK (Hedged) Class

Institutional NZD (Hedged) Class

Institutional SEK (Hedged) Class

Institutional SGD (Hedged) Class

Institutional USD (Hedged) Class

Institutional USD (Unhedged) Class

Investor Class

Investor CHF (Hedged) Class

Investor EUR (Hedged) Class

Investor EUR (Unhedged) Class

Investor GBP (Hedged) Class

Investor GBP (Unhedged) Class

Investor ILS (Hedged) Class

Investor NOK (Hedged) Class

Investor SEK (Hedged) Class

Investor USD (Hedged) Class

Investor USD (Unhedged) Class

Administrative Class

Administrative CHF (Hedged) Class

Administrative EUR (Hedged) Class

Administrative EUR (Unhedged) Class

Administrative GBP (Hedged) Class

Administrative GBP (Unhedged) Class

Administrative ILS (Hedged) Class

Administrative SEK (Hedged)

Administrative USD (Hedged)

Administrative USD (Unhedged)

Class H Institutional

Class H Institutional EUR (Hedged)

Class H Institutional USD (Unhedged)

Class E

Class E CHF (Hedged)

Class E EUR (Hedged)

Class E EUR (Unhedged)

Class E GBP (Hedged)

Class E ILS (Hedged) Class

Class E SEK (Hedged)

Class E SGD (Hedged)

Class E USD (Hedged)

Class E USD (Unhedged)

Class G Retail

Class G Retail (EUR) Hedged

Class G Retail (EUR) Unhedged

Class M Retail

Class M Retail (HKD) Unhedged

Class Z

Class Z EUR (Hedged)

Class Z GBP (Hedged)

Class Z USD (Unhedged)

Types of Shares:

Within each Class, the Company may issue either or both Income

Shares (Shares which distribute income) or Accumulation Shares

(Shares which accumulate income) except for the US Government

Money Market Fund, which will only have Income Shares.

Net Assets (Amounts in thousands):

€

48,796,306 (USD65,462,197).

Minimum Holding:

The Administrative, Institutional, Investor, and Class H Institutional

Share Classes require a minimum holding of USD500,000 or its

equivalent in the relevant Share Class currency in aggregate, with

a minimum of USD100,000 or its equivalent in the relevant Share

Class currency per Fund. Class E, Class G and Class M Shares

require a minimum holding of USD5,000 or its equivalent in the

relevant Share Class currency in aggregate per Fund. Pacific

Investment Management Company LLC, at its sole discretion, is

authorised to waive the minimum initial subscription, minimum

additional subscription, and minimum holding requirements as set

forth in the current Prospectus.

Dealing Day:

All Funds deal on any day on which banks are open for business in

Dublin, Ireland or such other days as may be specified by the

Company, with the approval of the Custodian.

Funds’ Functional Currency:

USD ($), except the UK Corporate Bond, UK Long Term Corporate

Bond Fund, UK Sterling Inflation-Linked, UK Sterling Long Average

Duration, UK Sterling Low Average Duration and UK Total Return

Bond Funds which are denominated in UK Sterling (£), and the

PIMCO EqS Pathfinder Europe

™

_{, EuriborPLUS, Euro Bond, Euro}

Credit, Euro Liquidity, Euro Long Average Duration, Euro Real

Return, Euro Ultra-Long Duration, and FX Strategies Funds which

are denominated in Euro (

€

).

Hong Kong Authorisation

The following Funds are not authorised in Hong Kong, and are not

available to Hong Kong residents:

Emerging Markets and Infrastructure Bond Fund

PIMCO EqS Pathfinder Fund

TM

PIMCO EqS Pathfinder Europe Fund

TM

Euro Credit Fund

Euro Liquidity Fund

Euro Long Average Duration Fund

Euro Real Return Fund

Euro Ultra-Long Duration Fund

FX Strategies Fund

Global Advantage Fund

Global Bond Ex-US Fund

Global Multi-Asset Fund

Mortgage-Backed Securities Fund

Socially Responsible Emerging Markets Bond Fund

StocksPLUS

TM

_Fund

UK Corporate Bond Fund

UK Long Term Corporate Bond Fund

UK Sterling Inflation-Linked Fund

UK Sterling Long Average Duration Fund

UK Sterling Low Average Duration Fund

UK Total Return Bond Fund

Unconstrained Bond Fund

US Government Money Market Fund

Reuters Page:

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Chairman’s Letter

Dear Shareholder:

It is our pleasure to present to you the Annual Report for the PIMCO Funds: Global Investors Series plc covering the twelve-month

reporting period ended 31 December 2010. On the following pages, please find specific details as to each Fund’s total return

investment performance and a discussion of those factors that affected performance during the reporting period.

As an update, in the financial markets over the reporting period:

䡲

Financial markets were volatile stemming from uncertainty regarding the efficacy of government fiscal and quantitative

easing policies orchestrated to help stabilize financial markets due to the Great Recession of 2009. In addition, the sovereign

debt crisis in Europe was an ongoing destabilizing force for financial markets worldwide, and governments across Europe

focused on austerity measures to address growing national deficits. As a result, sovereign bond yields generally increased

towards the latter part of the reporting period even though central banks kept key short-term interest rates at historic low

levels. Investors embraced risk assets in the last quarter of the reporting period on expectations for an improved economic

outlook and announcements of expanded quantitative easing programs.

䡲

Diversified commodity index returns posted positive results, as measured by the Dow Jones-UBS Commodity Index Total

Return, which returned 16.83% for the reporting period. These positive returns were supported by futures price gains in the

softs sector (such as cotton, coffee and sugar), the grains sector, and the precious and industrial metals sector. The energy

sector, on the other hand, saw overall negative returns for the year as natural gas futures prices declined as a result of rising

rig count and building inventories. However, downside in the energy sector was limited by higher crude oil futures prices,

which gained on expectations for stronger economic growth.

䡲

Global inflation-linked bonds posted positive returns, as represented by the Barclays Capital World Government

Inflation-Linked Bond USD Hedged Index, which gained 5.43%. While inflation generally remained muted in most of the developed

world, signs of inflationary pressures arose later in the period with increases in energy and food prices.

䡲

Emerging market (“EM”) debt instruments, both local currency and US dollar denominated, outperformed US Treasury

securities during the reporting period. Spreads on EM external debt and yields in EM Local debt instruments tightened as

most EM economies posted strong economic growth rates.

䡲

Equity markets worldwide were volatile during the reporting period but staged an impressive rally in the last quarter of the

reporting period, making up from losses posted over the summer months of 2010. International equities, as represented by the

MSCI World Index, returned 11.76%. US equities, as measured by the S&P 500 Index, returned 15.06% and UK equities, as

represented by the FTSE 100 Index, returned 12.81%. However, Eurozone equities, as measured by the Dow Jones Euro

STOXX 50

®

_{Total Return Index, declined 2.81% due primarily to ongoing concerns stemming from sovereign debt worries in}

the region.

If you have questions regarding the PIMCO Funds: Global Investors Series plc, please contact the London office on

+44 (0)20 7408 8955

or, for fund-operation questions, the Administrator on

+353 1 241 7100

.

Thank you again for the trust you have placed in us. We value your trust and will continue to work diligently to meet your broad

investment needs.

Sincerely,

Joseph V. McDevitt

Chairman

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Important Information About the Funds

This material is authorised for use only when preceded or accompanied by the current PIMCO Funds: Global Investors Series

plc Prospectus. Investors should consider the investment objectives, risks, charges and expenses of these Funds carefully

before investing. This and other information is contained in the Prospectus. Please read the Prospectus carefully before you

invest or send money.

We believe that bond funds have an important role to play in a well diversified investment portfolio. It is important to note, however, that 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. The price volatility of fixed-income securities can also increase during periods of rising

interest rates, resulting in increased losses to a fund. 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 or funds with shorter

durations. The longer-term performance of most bond funds has benefited from capital gains in part resulting from an extended period of

declining interest rates. In the event interest rates increase, these capital gains should not be expected to recur.

The Funds may be subject to various risks in addition to those described above. Some of these risks may include, but are not limited to, the

following: real rate risk, derivative risk, small company risk, foreign security risk, high-yield security risk and specific sector investment risks.

The Funds may use derivative instruments for hedging purposes or as part of an 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. Funds investing in derivatives could lose more than the principal amount invested

in these instruments. Investing in foreign securities may entail risk due to foreign economic and political developments; this risk may be

enhanced when investing in emerging markets. High-yield bonds typically have a lower credit rating than other bonds. Lower rated bonds

generally involve a greater risk to principal than higher rated bonds. Smaller companies may be more volatile than larger companies and may

entail more risk. Concentrating investments in individual sectors may add additional risk and volatility compared to a diversified fund.

Past performance is no guarantee of future results. On each individual fund summary page in this Report, the Total Return Investment

Performance table measures performance assuming that all dividend and capital gain distributions were reinvested. Investment return and

principal value will fluctuate so that Fund shares, when redeemed, may be worth more or less than their original cost. Returns do not reflect the

deduction of taxes that a shareholder would pay (i) on Fund distributions or (ii) the redemption of Fund shares. Current performance may be

lower or higher than the performance data quoted. All Fund returns are net of fees and expenses.

An investment in a Fund is not a deposit in a bank and is not guaranteed or insured by any government agency. The value of and income from

Shares in the Fund may go up or down and you may not get back the amount you have invested in the Funds.

PIMCO Funds: Global Investors Series plc is distributed by PIMCO Europe Ltd, 103 Wigmore Street, London W1U 1QS, England; PIMCO Asia Pte

Ltd, 501 Orchard Road #08-03, Wheelock Place, Singapore 238880 and PIMCO Australia Pty Ltd, Level 19, 363 George Street, Sydney, New

South Wales 2000 Australia; www.pimco.com.

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CommoditiesPLUS

TM

_{Strategy Fund}

Total Return Net of Fees and Expenses for the Period Ended 31 December 20101

1 Year Fund Inception Classes denominated in USD

Institutional Class Accumulation Shares (Inception 31 Aug 2006) 20.96% 3.01%

Class E Accumulation Shares (Inception 21 Sep 2007) 19.74% 1.11%

Class E Income Shares (Inception 31 Oct 2006) 19.73% 2.60%

Class Z Income Shares (Inception 18 Nov 2008) 21.65% 24.85%

Dow Jones-UBS Commodity Index Total Return 16.83% 0.67%

Classes denominated in EUR

Institutional EUR (Hedged) Class Accumulation Shares (Inception 08 Jun 2010) — 33.70%

Dow Jones-UBS Commodity Index Total Return (EUR Hedged) — —

1_{Annualised performance for periods of at least one year, otherwise cumulative.}

Portfolio Insights

» The CommoditiesPLUS™_{Strategy Fund} seeks to achieve its investment objective by investing under normal circumstances in commodity index-linked derivative instruments backed by a portfolio of actively managed global Fixed Income Securities (as defined in the Prospectus).

» The Fund seeks to outperform the Dow Jones-UBS Commodity Index Total Return by actively managing its commodity exposure and the cash collateral portfolio that backs it.

» Above-index US nominal duration added to performance as the ten-year US Treasury yield declined.

» Above-index Canadian nominal duration during the majority of the year benefited performance as the ten-year Canadian nominal yield decreased.

» Holdings of select Asian currencies, such as the Chinese yuan and the Singapore dollar, added to performance as these currencies appreciated versus the US dollar. » Above-index UK nominal duration in the

latter part of the year detracted from performance as the ten-year UK yield increased during that period.

» Above-index European nominal duration in the second half of the year detracted from performance as the ten-year European yield increased during that period.

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Developing Local Markets Fund

Institutional Class Accumulation Shares (Inception 29 Sep 2006) 7.32% 7.01%

Class E Accumulation Shares (Inception 19 Nov 2008) 6.33% 12.35%

Class Z Income Shares (Inception 18 Nov 2010) — -0.58%

JPMorgan Emerging Local Markets Index Plus (Unhedged) 5.68% 8.32%

JPMorgan Emerging Local Markets Index Plus +Bid (Unhedged) 5.57% 8.03% Classes denominated in EUR

Institutional EUR (Unhedged) Class Accumulation Shares (Inception 20 Jan 2010)2 _— _12.50% Class E EUR (Unhedged) Accumulation Shares (Inception 02 Jul 2009) 14.56% 12.18%

JPMorgan Emerging Local Markets Index Plus (EUR Unhedged) 13.90% —

2_{Institutional EUR (Unhedged) Class Accumulation Shares opened initially on 13 June 2008, closed on 21 April 2009 and re-opened}

20 January 2010.

» The Developing Local Markets Fund seeks to achieve its investment objective by investing under normal circumstances primarily in a portfolio of currencies or Fixed Income Instruments (as defined in the Prospectus) denominated in currencies of non-US countries, excluding those countries that have been classified by the World Bank as high-income Organization For Economic Co-Operation and Development economies for the past five consecutive years. » An underweight to Hungary contributed to

performance as the Hungarian sub index underperformed the JPMorgan Emerging Local Markets Index Plus (Unhedged) (“the Fund’s benchmark index”) for the period. » An overweight to Mexico benefited returns

as the Mexico sub index outperformed the Fund’s benchmark index for the period. » An off-benchmark exposure to global

financials benefited performance as financials outperformed the Fund’s benchmark index for the period. » An underweight to South Africa detracted

from returns as the South Africa sub index outperformed the Fund’s benchmark index for the period.

» An overweight to China detracted from returns as the Chinese sub index

underperformed the Fund’s benchmark index for the period.

» An overweight to Poland detracted to performance as the Poland sub index underperformed the Fund’s benchmark index for the period.

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Diversified Income Fund

Institutional Class Accumulation Shares (Inception 30 Jun 2005) 13.23% 7.94% Institutional Class Income Shares (Inception 08 Sep 2008) 13.16% 11.91%

Class M Retail Income Shares (Inception 30 Nov 2010) — 0.40%

Class E Income Shares (Inception 31 Jul 2006) 12.22% 7.75%

1/3 each-Barclays Capital Global Aggregate Credit Component, BofA Merrill Lynch Global High

Yield BB-B Rated Constrained, JPMorgan EMBI Global; All USD Hdgd 11.04% 7.00% Classes denominated in EUR

Institutional EUR (Hedged) Class Accumulation Shares (Inception 14 Feb 2007) 13.15% 8.08% Institutional EUR (Hedged) Class Income Shares (Inception 17 Oct 2007) 13.13% 9.04% Investor EUR (Hedged) Class Accumulation Shares (Inception 05 Jul 2007) 12.66% 8.89% Administrative EUR (Hedged) Class Accumulation Shares (Inception 20 Jul 2007) 12.51% 8.80% Class E EUR (Hedged) Accumulation Shares (Inception 03 Jul 2007) 12.05% 8.42% Class E EUR (Hedged) Income Shares (Inception 16 Oct 2009) 12.05% 11.57% 1/3 each-Barclays Capital Global Aggregate Credit Component, BofA Merrill Lynch Global High

Yield, BB-B Rated Constrained, JPMorgan EMBI Global; All EUR Hdgd 10.55% — Classes denominated in GBP

Institutional GBP (Hedged) Class Accumulation Shares (Inception 16 May 2006) 13.15% 9.02% Institutional GBP (Hedged) Class Income Shares (Inception 14 Feb 2006) 13.15% 8.61% 1/3 each-Barclays Capital Global Aggregate Credit Component, BofA Merrill Lynch Global High

Yield BB-B Rated Constrained, JPMorgan EMBI Global; All GBP Hdgd 10.90% — Classes denominated in SEK

Institutional SEK (Hedged) Class Accumulation Shares (Inception 31 Mar 2006) 13.31% 7.62% 1/3 each-Barclays Capital Global Aggregate Credit Component, BofA Merrill Lynch Global High

Yield BB-B Rated Constrained, JPMorgan EMBI Global; All SEK Hdgd 10.75% —

» The Diversified Income Fund seeks to achieve its investment objective by investing under normal circumstances at least 65% of its total assets in a diversified portfolio of Fixed Income Instruments (as defined in the Prospectus) of varying maturities.

» An overall overweight to emerging market (“EM”) debt enhanced relative performance. EM debt, as represented by the JPMorgan Emerging Markets Bond Index Global (“EMBIG”), returned 12.04% during the period, outperforming the Fund’s benchmark index.

» Within in the Fund’s EM holdings, an underweight allocation to Argentina debt detracted from relative performance as Argentina debt, represented by the JPMorgan EMBIG Argentina sub index, returned 35.40% during the period, outperforming the Fund’s benchmark index. » Within in the Fund’s EM holdings, an

underweight allocation to Venezuela debt detracted from relative performance as Venezuela sovereign bonds, represented by the JPMorgan EMBIG Venezuela sub index, returned 16.05% for the period,

outperforming the Fund’s blended index. » Within the Fund’s EM holdings, an

overweight allocation to Colombia debt enhanced relative performance as Colombia bonds, represented by the JPMorgan EMBIG Colombia sub index, returned 11.40% during the period, outperforming the Fund’s benchmark index.

» Within in the Fund’s corporate holdings, an overweight allocation to high grade banking credits detracted from relative performance as banking debt, represented by the banking component of the Barclays Capital Global Aggregate Bond Index, underperformed the Fund’s benchmark index with a return of 6.07% for the period.

» Within the Fund’s credit holdings, an underweight to supranationals enhanced relative performance as these issues, represented by the supranational component of the Barclays Capital Global Aggregate Bond Index, returned 5.02% during the period, underperforming the Fund’s benchmark index.

» Tactical exposure to commercial mortgage-backed securities (“CMBS”) benefited performance as CMBS, represented by the Barclays Capital CMBS Index, returned 20.81% during the period, outperforming the Fund’s benchmark index.

» An overall underweight allocation to global high yield bonds detracted from relative performance as this segment of the credit market, represented by the BofA Merrill

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Emerging Asia Bond Fund

Fund Inception Classes denominated in USD

Class E Income Shares (Inception 01 Jun 2010) 18.37%

[90% JPMorgan Asia credit Index (JACI) + 10% 1 month USD Libor] * [JPMorgan Emerging Local Markets

Index (ELMI+)] / [3 month USD Libor] 15.22%

Institutional EUR (Unhedged) Class Accumulation Shares (Inception 01 Oct 2010) 4.10% [90% JPMorgan Asia credit Index (JACI) + 10% 1 month USD Libor] * [JPMorgan Emerging Local Markets

Index (ELMI+)] / [3 month USD Libor]. (Euro Unhedged) —

» The Emerging Asia Bond Fund seeks to maximise total return, consistent with prudent investment management. The Fund invests in a combination of Fixed Income Instruments (as defined in the Prospectus) of issuers that are economically tied to Asia ex-Japan countries with emerging securities markets, related derivatives (as defined in the Prospectus) on such securities and emerging market currencies. Fixed Income Securities purchased by the Fund will be rated at least Caa by Moody’s or CCC by S&P (or if unrated, determined by the Investment Adviser to be of comparable quality).

» An overweight to China’s external debt contributed to performance as the China sub index of the JPMorgan Asia Credit Index (“JACI”) outperformed the overall JPMorgan JACI for the period.

» An overweight to Indonesia’s external debt contributed to performance as the Indonesia sub index of the JPMorgan Asia Credit Index (“JACI”) outperformed the overall JPMorgan JACI for the period.

» On the currency front, an underweight to the Hungarian forint detracted from

performance as the Hungarian sub index of the JPMorgan Emerging Local Markets Index Plus (“ELMI+”) outperformed the overall JPMorgan ELMI+ for the period. » An underweight to the South African rand

detracted from performance as the South Africa sub index of the JPMorgan ELMI+ outperformed the overall JPMorgan ELMI+ for the period.

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Emerging Local Bond Fund

Institutional Class Accumulation Shares (Inception 11 Dec 2007) 14.74% 9.19% Institutional Class Income Shares (Inception 18 Apr 2008) 14.78% 8.93%

Investor Class Accumulation Shares (Inception 18 Aug 2010) — 2.80%

Class E Accumulation Shares (Inception 19 Nov 2008) 13.64% 25.39%

Class E Income Shares (Inception 08 Jul 2010) — 7.36%

JPMorgan Government Bond Index-Emerging Markets Global Diversified Index (Unhedged) 15.68% 9.55% Classes denominated in EUR

Institutional EUR (Unhedged) Class Accumulation Shares (Inception 16 Apr 2010)2 _— _8.70% Institutional EUR (Unhedged) Class Income Shares (Inception 23 Jun 2010) — 0.77% Administrative EUR (Unhedged) Class Accumulation Shares (Inception 30 Sep 2010) — 1.60% Class G Class EUR (Unhedged) Income Shares (Inception 14 Dec 2010) — 1.20% Class E EUR (Unhedged) Accumulation Shares (Inception 02 Jul 2009) 22.45% 21.02% JPMorgan Government Bond Index-Emerging Markets Global Diversified Index (EUR Unhedged) 23.72% — Classes denominated in GBP

Institutional GBP (Unhedged) Class Accumulation Shares (Inception 27 Jun 2008) 19.42% 22.91% Institutional GBP (Unhedged) Class Income Shares (Inception 14 Aug 2008) 19.44% 20.06% JPMorgan Government Bond Index-Emerging Markets Global Diversified Index (GBP Unhedged) 19.31% —

2_{Institutional EUR (Unhedged) Class Shares opened initially on 13 June 2008, closed on 21 April 2009 and re-opened 16 April 2010.}

» The Emerging Local Bond Fund seeks to maximise total return, consistent with prudent investment management. The Fund will normally invest at least 80% of its assets in Fixed Income Instruments (as defined in the Prospectus) denominated in currencies of countries with emerging securities markets, which may be represented by forwards or derivatives such as options, futures contracts, or

swap agreements.

» An overweight to Brazil contributed to performance as the Brazilian sub index outperformed the JPMorgan Government Bond Index-Emerging Markets Global Diversified (Unhedged) (“the Fund’s benchmark index”) for the period. » An underweight to Hungary contributed to

performance as the Hungary sub index underperformed the Fund’s benchmark index for the period.

» An underweight to Russia contributed to performance as the Russia sub index underperformed the Fund’s benchmark index for the period.

» An underweight to South Africa detracted from performance as the South Africa sub index outperformed the Fund’s benchmark index for the period.

» An overweight to Poland detracted from relative performance as the Poland sub index underperformed the Fund’s benchmark index for the period.

» An underweight to Colombia detracted from relative performance as the Colombia sub index outperformed the Fund’s benchmark index for the period.

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Emerging Markets and Infrastructure Bond Fund

Institutional Class Accumulation Shares (Inception 12 Nov 2009) 12.34% 12.07%

Class Z Income Shares (Inception 03 Dec 2009) 13.82% 13.30%

JPMorgan Corporate Emerging Markets Bond Index Diversified (CEMBI) 13.50% 12.35% Classes denominated in EUR

Institutional EUR (Hedged) Class Accumulation Shares (Inception 19 Feb 2010) — 10.40% Class E EUR (Hedged) Accumulation Shares (Inception 02 Mar 2010) — 7.90% JPMorgan Corporate Emerging Markets Bond Diversified Index (EUR Hedged) — —

» The Emerging Markets and Infrastructure Bond Fund seeks to achieve its investment objective by investing at least 80% of its assets in an actively managed diversified portfolio consisting of Fixed Income Instruments (as defined in the Prospectus) that are economically tied to emerging market countries and Fixed Income Instruments that are issued by infrastructure entities, or other entities which provide exposure to infrastructure projects or assets.

» An overweight to Indonesia contributed to performance. The Indonesia sub index outperformed the JPMorgan Corporate Emerging Markets Bond Index Diversified (“CEMBI”) (“the Fund’s benchmark index”) for the period.

» An overweight to Russia contributed to performance as the Russia sub index outperformed the Fund’s benchmark index for the period.

» An underweight to Mexico contributed to performance as the Mexico sub index underperformed the Fund’s benchmark index for the period.

» An overweight to Brazil detracted from performance as the Brazil sub index underperformed the Fund’s benchmark index for the period.

» An underweight to China detracted from performance as the China sub index outperformed the Fund’s benchmark index for the period.

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Emerging Markets Bond Fund

Institutional Class Accumulation Shares (Inception 31 Jul 2001) 12.37% 13.00% Institutional Class Income Shares (Inception 13 Dec 2001) 12.42% 11.70% Investor Class Accumulation Shares (Inception 25 Apr 2002) 12.01% 10.59%

Investor Class Income Shares (Inception 18 Apr 2002) 12.04% 10.51%

Administrative Class Accumulation Shares (Inception 29 May 2003) 11.79% 8.63% Class H Institutional Accumulation Shares (Inception 17 Oct 2002) 12.19% 12.91%

Class M Retail Income Shares (Inception 30 Nov 2010) — -0.40%

Class E Accumulation Shares (Inception 31 Mar 2006) 11.33% 7.12%

JPMorgan Emerging Markets Bond Index (EMBI) Global 12.04% 10.92%

Institutional EUR (Hedged) Class Accumulation Shares (Inception 17 Dec 2002) 12.26% 10.94% Institutional EUR (Hedged) Class Income Shares (Inception 20 Dec 2010) — 0.60% Investor EUR (Hedged) Class Accumulation Shares (Inception 04 Aug 2009) 11.85% 14.00% Class E EUR (Hedged) Accumulation Shares (Inception 31 Mar 2006) 11.24% 6.11%

JPMorgan EMBI Global (Euro Hedged) 11.39% —

Classes denominated in GBP

Institutional GBP (Hedged) Class Accumulation Shares (Inception 05 Feb 2004) 12.27% 9.65% Institutional GBP (Hedged) Class Income Shares (Inception 30 Dec 2005) 12.33% 7.88%

JPMorgan EMBI Global (GBP Hedged) 11.84% —

Classes denominated in CHF

Institutional CHF (Hedged) Class Income Shares (Inception 16 Dec 2005) 11.58% 5.83%

JPMorgan EMBI Global (CHF Hedged) 11.16% —

Classes denominated in SGD

Class E SGD (Hedged) Accumulation Shares (Inception 15 Feb 2007) 11.24% 4.94%

JPMorgan EMBI Global (SGD Hedged) 11.79% —

» The Emerging Markets Bond Fund seeks to achieve its investment objective by investing at least 80% of its assets in Fixed Income Securities (as defined in the Prospectus) of issuers that economically are tied to countries with emerging securities markets.

» An out-of-benchmark exposure to Russian corporate credits and quasi-sovereign credits benefited relative performance as the Russian corporate and quasi sovereign sub indexes of the JPMorgan Corporate Emerging Markets Bond Index (“CEMBI”) outperformed the JPMorgan Emerging Markets Bond Index Global (“the Fund’s benchmark index”) during the period. » An underweight to Hungary contributed to

relative performance as the Hungarian sub index underperformed the Fund’s benchmark index during the period.

» An underweight to China contributed to relative performance as the Chinese sub index underperformed the Fund’s benchmark index during the period.

» An underweight to Argentina detracted from relative performance as the Argentinean sub index outperformed the Fund’s benchmark index during the period. » An underweight to Ukraine detracted from

relative performance as the Ukrainian sub index outperformed the Fund’s benchmark index during the period.

» An underweight to Venezuela detracted from relative performance as the Venezuelan sub index outperformed the Fund’s benchmark index during the period.

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PIMCO

EqS Pathfinder Fund

TM

Fund Inception Classes denominated in USD

Institutional Class Accumulation Shares (Inception 20 May 2010) 10.70%

Institutional Class Income Shares (Inception 20 May 2010) 10.73%

Investor Class Accumulation Shares (Inception 08 Jul 2010) 8.20%

Class E Accumulation Shares (Inception 28 May 2010) 9.70%

Class E Income Shares (Inception 28 May 2010) 9.72%

MSCI World Index 21.62%

Institutional EUR (Hedged) Class Accumulation Shares (Inception 26 Jul 2010) 6.50% Class E EUR (Hedged) Accumulation Shares (Inception 10 Nov 2010) 0.80%

MSCI World (Euro Hedged) Index —

» The PIMCO EqS Pathfinder Fund™ seeks to achieve its investment objective primarily by investing, under normal circumstances, in Equity Securities (as defined in the Prospectus), including common and preferred stock, of issuers which the Investment Adviser is of the view are undervalued and that are economically tied to at least three countries (one of which may be the United States).

» The Fund commenced operations on 20 May 2010.

» During the reporting period, the Fund’s Institutional class shares returned 10.70% after fees and the Fund’s benchmark index, the MSCI World Index, returned 21.62%. The Fund’s performance, although positive, underperformed its benchmark index by 10.92%.

» Stock selection in the energy sector, particularly exposure to offshore oil drillers such as Seadrill Ltd. and Pride International Inc., contributed to performance as these securities appreciated in value during the reporting period.

» British American Tobacco PLC and Link Real Estate Investment Trust were notable contributors to performance as prices on these investments appreciated, as was the Fund’s exposure to merger arbitrage investments.

» In a market which was largely positive, there were few negative contributors. However financials Bank of America and CBOE (the Chicago Board Option Exchange) both underperformed during the period. » Given the sharp recovery in the equity

markets over the time period under review, the Fund’s market risk hedging strategies contributed negatively to performance during this reporting period as these market risk hedging strategies declined in value as the markets appreciated.

» At the end of the period, the Fund held approximately 67% in equities we believe are undervalued, about 3% (on the long side only) in merger arbitrage investments, approximately 26% in cash equivalents, and held the balance of the portfolio in currency and market risk hedges.

(14)

PIMCO

EqS Pathfinder Europe Fund

TM

Fund Inception Classes denominated in EUR

Institutional Class Accumulation Shares (Inception 20 May 2010) 9.50%

Institutional Class Income Shares (Inception 28 May 2010) 9.18%

Class E Accumulation Shares (Inception 09 Jun 2010) 9.50%

Class E Income Shares (Inception 09 Jun 2010) 9.45%

MSCI Europe Index 16.59%

» The PIMCO EqS Pathfinder Europe Fund™ seeks to achieve its investment objective primarily by investing, under normal circumstances, in Equity Securities (as defined in the Prospectus), including common and preferred stock, of issuers which the Investment Adviser is of the view are undervalued and that are economically tied to European countries.

» The Fund commenced operations on 20 May 2010.

» During the reporting period, the Fund’s Institutional class shares returned 9.50% after fees and the Fund’s benchmark index, the MSCI Europe Index, returned 16.59%. The Fund’s performance, although positive, underperformed its benchmark index by 7.09%.

» Stock selection in the energy sector, particularly exposure to an offshore oil driller such as Seadrill Ltd. contributed to performance as this security appreciated in value during the reporting period. » British American Tobacco PLC and Philip

Morris International were also notable contributors to performance as prices on these investments appreciated.

» In a market which was largely positive there were few negative contributors, however exposure to integrated-utility company E.ON was a notable detractor from performance as the security underperformed during the period.

» Given the sharp recovery in the equity markets over the time period under review, the Fund’s market risk hedging strategies contributed negatively to performance during this reporting period as these market risk hedging strategies declined in value as the markets appreciated.

» At the end of the period, the Fund held approximately 72% in equities we believe are undervalued, about 2% (on the long side only) in merger arbitrage investments, approximately 22% in cash equivalents, and held the balance of the portfolio in currency and market risk hedges.

(15)

EuriborPLUS Fund

1 Year Fund Inception Classes denominated in EUR

Institutional Class Accumulation Shares (Inception 31 Jan 2006) 2.41% 2.87% Investor Class Accumulation Shares (Inception 31 Mar 2006) 2.08% 2.56%

1 Month Euribor Rate Index 0.55% 2.59%

» The EuriborPLUS Fund seeks to achieve its investment objective by investing at least two-thirds of its assets in a diversified portfolio of euro-denominated Fixed Income Securities (as defined in the Prospectus) with varying maturities although the average portfolio duration is not expected to exceed one and a half years.

» Exposure to duration in the European Monetary Union was positive for returns as Euro sovereign yields decreased during the period.

» Exposure to emerging market bonds added modestly to performance as spreads over US Treasuries fell during the period. » Exposure to Asian emerging market

currencies added to returns as these currencies appreciated versus the euro during the period.

» Exposure to asset-backed securities was positive for returns as sector spreads tightened during the period.

(16)

Euro Bond Fund

Institutional Class Accumulation Shares (Inception 31 Dec 1998) 6.52% 4.26% Institutional Class Income Shares (Inception 07 Jan 2003) 6.49% 3.81% Investor Class Accumulation Shares (Inception 08 May 2002)2 _6.10% _4.12%

Investor Class Income Shares (Inception 29 Apr 2002) 6.09% 4.07%

Administrative Class Accumulation Shares (Inception 07 Jun 2001) 5.96% 3.98%

Citigroup Euro Broad Investment-Grade Index 2.05% 4.48%

Institutional CHF (Hedged) Class Accumulation Shares (Inception 30 Jun 2006) 5.84% 1.59%

Citigroup Euro Broad Investment-Grade (CHF Hedged) Index 1.59% —

2_{Investor Class Accumulation Shares opened initially on 18 January 2001, closed on 26 July 2001 and re-opened 8 May 2002.}

» The Euro Bond Fund seeks to achieve its investment objective by investing at least two-thirds of its assets in a diversified portfolio of euro-denominated Fixed Income Securities (as defined in the Prospectus) of varying maturities.

» The broad euro bond market returned 2.05% year to date; government bonds underperformed the broad market returning 1.52%, while European corporates outperformed returning 4.43% as of 31 December 2010.

» An overweight to interest rates in the UK and an underweight to interest rates in the Eurozone during the fourth quarter benefited performance as yields declined in the UK during 2010, while rising in the Eurozone during the fourth quarter.

» Eurozone country selection, namely an underweight to European peripherals, contributed to returns as spreads widened on sovereign risk concerns.

» A curve steepening position in the Eurozone detracted from returns as longer dated bonds outperformed shorter maturities. » Exposure to select high quality non-Agency

mortgage-backed securities (“MBS”) and asset-backed securities (“ABS”) added to returns as these securities outperformed the broad euro bond market during the period. » Exposure to emerging market currencies

added to returns as these currencies appreciated versus the US dollar during the period.

(17)

Euro Credit Fund

Institutional Class Accumulation Shares (Inception 31 Jan 2008) 8.36% 5.44%

Class E Accumulation Shares (Inception 25 May 2010) — 2.40%

Barclays Capital Euro-Aggregate Credit Index 4.78% 4.93%

» The Euro Credit Fund seeks to maximise total return, consistent with preservation of capital and prudent investment

management. The Fund invests at least two-thirds of its assets in a diversified portfolio of Euro-denominated Fixed Income Instruments (as defined in the Prospectus) of varying maturities, which may be represented by direct or indirect holdings in credit-related Fixed Income Securities or derivative instruments such as options, futures swaps or credit default swaps. » An overweight to banks detracted from

returns as the banking sector

underperformed the credit market during the period.

» An underweight to the insurance sector was negative for performance as insurance debt outperformed the credit index during the period.

» An underweight to supranational debt added to portfolio returns as supranational debt underperformed their corporate counterparts during the period. » An underweight to utilities contributed to

performance as the utilities sector lagged the credit market during the period. » Above-index duration in the Eurozone was

positive for relative returns as yields fell over the period.

» A yield curve steepening strategy in Europe detracted from performance as the yield curve flattened in Europe over the period.

(18)

Euro Liquidity Fund

Institutional Class Accumulation Shares (Inception 16 Dec 2008) 0.30% 0.59% Institutional Class Income Shares (Inception 13 May 2008) 0.29% 1.33%

Class E Accumulation Shares (Inception 01 Jul 2008) 0.00% 0.83%

Eonia®_{- Euro OverNight Index Average} _0.44% _1.37%

» The Euro Liquidity Fund seeks to achieve its investment objective by investing solely in Euro-denominated instruments with maturities of fewer than 397 days and maintains a weighted average maturity of 60 days or less.

» Exposure to longer maturities added to returns as the money market yield curve remained positively sloped during the period.

» Covered bond exposure added yield to the portfolio during the period.

» Selected Treasury bill exposure in Germany, France and the Netherlands provided a high-quality focus for the portfolio.

(19)

Euro Long Average Duration Fund

Institutional Class Accumulation Shares (Inception 21 Apr 2006) 9.45% 5.10% Institutional Class Income Shares (Inception 03 Apr 2008) 9.45% 8.77% Citigroup Euro Broad Investment-Grade (EuroBIG) Bond > 15 Years Index 3.09% 3.81%

» The Euro Long Average Duration Fund seeks to achieve its investment objective by investing at least two-thirds of its assets in a diversified portfolio of euro-denominated Fixed Income Securities (as defined in the Prospectus) of varying maturities. » An overweight to US duration benefited

performance as US Treasury yields declined over the period.

» An average underweight to Euro core country duration detracted from performance as yields on German Bunds declined over the period.

» An overweight to UK duration benefited performance as UK yields declined over the period.

» A German Bund yield curve steepening position detracted from performance in the first half of the period as the German Bund yield curve flattened. However, during the second half of the period, a German Bund yield curve steepening position benefited performance as the German Bund yield curve steepened.

» A long position in the Australian dollar versus the Euro benefited performance as the Euro underperformed the Australian dollar over the period.

» Portfolio allocation to corporate bonds added to absolute performance as corporate bonds performed well over the period. » Active Eurozone country selection positions,

in which the Fund was underweight peripherals and overweight core countries, benefited performance as peripheral sovereign spreads widened over the period.

(20)

Euro Real Return Fund

Institutional Class Income Shares (Inception 03 Apr 2008) 3.73% 4.94% Institutional Class Accumulation Shares (Inception 31 Jan 2006) 3.78% 2.96%

Barclays Capital Euro Inflation-Linked Bond Index 1.06% 2.86%

» The Euro Real Return Fund seeks to achieve its investment objective by investing at least two-thirds of its assets in a diversified portfolio of euro-denominated inflation-linked Fixed Income Securities (as defined in the Prospectus) of varying maturities issued by governments, their agencies or instrumentalities and corporations. » Above-index European nominal duration

benefited performance as the ten-year European yield decreased.

» Exposure to US nominal duration added to performance as the ten-year US Treasury yield declined.

» Holdings in UK nominal duration benefited performance as the ten-year UK yield decreased.

» Holdings of select Asian currencies, such as the Chinese yuan, the Indian rupee and the Singapore dollar, added to performance as these currencies appreciated versus the US dollar.

» Below-index European real duration during the majority of the year detracted from performance as the ten-year European real yield declined.

» Below-index UK real duration detracted from performance as the ten-year UK real yield declined.

(21)

Euro Ultra-Long Duration Fund

Institutional Class Accumulation Shares (Inception 29 Jan 2007) 17.19% 10.11% 1/3 each Barclays Capital 25 Yr, 30 Yr, and 35 Yr Zero Coupon Nominal Swap Index

(Euro Unhedged) 17.68% 11.26%

» The Euro Ultra-Long Duration Fund seeks to maximise total return, consistent with the stated duration targets and prudent investment management. The Fund invests at least two-thirds of its assets in a diversified portfolio of euro-denominated Fixed Income Instruments (as defined in the Prospectus).

» A modest average overweight to US duration benefited performance as yields declined over the period.

» An overweight to Canadian duration benefited performance as Canadian yields rallied over the period.

» An underweight to Eurozone swap spread duration benefited performance as spreads widened.

» Exposure to long positions in Asian emerging market currencies versus the Euro benefited performance as the Euro underperformed relative to these currencies. » Front-end yield curve positions initially

detracted from portfolio performance in the first half of the period as the Eurozone yield curve flattened. However, during the last half of the year the Eurozone yield curve steepened, which benefited performance. » Portfolio allocation to corporate bonds

added to absolute performance as corporate bonds performed well for the period.

(22)

FX Strategies Fund

Institutional Class Accumulation Shares (Inception 30 Apr 2007) 0.64% 2.48%

Class E Accumulation Shares (Inception 19 Nov 2008) -0.09% 2.56%

Class Z Income Shares (Inception 12 Nov 2010) — 0.52%

1 Month Euribor Rate Index 0.55% 2.39%

» The FX Strategies Fund seeks to maximise total return, consistent with prudent investment management. The Fund will seek to identify and exploit inefficiencies and opportunities present in global currency markets.

» An overweight to the Australian dollar benefited performance as the Australian dollar appreciated versus the euro. » An overweight to the Swedish krona

benefited performance as the Swedish krona appreciated relative to the euro. » An overweight to the New Zealand dollar

benefited performance as the New Zealand dollar appreciated relative to the euro. » An underweight to the Swiss franc

detracted from performance as the Swiss franc appreciated relative to the euro. » An underweight to the US dollar detracted

from performance as the US dollar appreciated relative to the euro.

(23)

Global Advantage Fund

Institutional Class Accumulation Shares (Inception 09 Jun 2009) 7.77% 11.12%

Investor Class Accumulation Shares (Inception 18 Feb 2010) — 7.60%

Class E Accumulation Shares (Inception 10 Dec 2010) — 1.80%

Class E Income Shares (Inception 10 Dec 2010) — 1.80%

PIMCO Global Advantage Bond Index (GLADI) (London Close) 6.14% 9.90% Classes denominated in EUR

Institutional EUR (Hedged) Class Accumulation Shares (Inception 24 May 2010) — 3.10% Class E EUR (Hedged) Accumulation Shares (Inception 06 May 2010) — 2.70% PIMCO Global Advantage Bond Index (GLADI) (EUR, Partially Hedged) (London Close) — —

» The Global Advantage Fund seeks to achieve maximum long-term return, consistent with the preservation of capital and prudent investment management, by investing 80% of its assets in a diversified portfolio of Fixed Income Instruments (as defined in the Prospectus) that are economically tied to at least three countries (one of which may be the United States). » An overweight to US and Euro duration

during the first half of the reporting period contributed to overall performance as yields declined during the period.

» An underweight position on US Treasury Inflation-Protected Securities (“TIPS”) duration during the first half of the reporting period contributed to performance as breakeven rates declined during the period. An overweight position on US TIPS duration during the fourth quarter also contributed to performance as breakeven rates rose during that period.

» An overweight exposure to high-grade US corporate bond holdings (particularly financials) contributed positively to performance as credit spreads narrowed sharply during the latter half of the reporting period.

» Overweight positions on a basket of appreciating Asian currencies, notably the Singapore dollar and the Chinese yuan and underweight positions on the euro and Eastern European currencies (especially the Russian ruble) contributed positively to overall performance.

» Underweight exposure to emerging market external bonds in January 2010 and May 2010 contributed to performance as spreads widened during those periods.

(24)

Global Bond Fund

Institutional Class Accumulation Shares (Inception 12 Mar 1998) 9.28% 6.04% Institutional Class Income Shares (Inception 18 Apr 2001) 9.27% 5.66% Investor Class Accumulation Shares (Inception 01 Mar 1999) 8.94% 5.46%

Investor Class Income Shares (Inception 23 Jan 2001) 8.84% 5.28%

Administrative Class Accumulation Shares (Inception 14 Jun 2004)2 _8.74% _5.18% Class H Institutional Accumulation Shares (Inception 15 Oct 2002) 9.12% 5.30%

Barclays Capital Global Aggregate (USD Hedged) Index / JPGH Hedged3 _4.61% _5.69% Classes denominated in USD (Unhedged)

Institutional USD (Unhedged) Class Accumulation Shares (Inception 13 Dec 2002) 10.07% 6.97% Institutional USD (Unhedged) Class Income Shares (Inception 23 Mar 2006) 10.09% 7.60% Investor USD (Unhedged) Class Accumulation Shares (Inception 31 Mar 2005) 9.69% 5.42% Class E USD (Unhedged) Accumulation Shares (Inception 19 May 2010) — 8.00% Class E USD (Unhedged) Income Shares (Inception 19 May 2010) — 7.95% Class Z USD (Unhedged) Income Shares (Inception 18 Nov 2008) 10.62% 18.34%

Barclays Capital Global Aggregate (USD Unhedged) Index 5.54% —

Institutional EUR (Hedged) Class Accumulation Shares (Inception 04 Apr 2003) 9.33% 4.75% Institutional EUR (Hedged) Class Income Shares (Inception 12 Apr 2005) 9.38% 4.78% Investor EUR (Hedged) Class Accumulation Shares (Inception 02 Feb 2005) 8.98% 4.36% Class E EUR (Hedged) Accumulation Shares (Inception 31 Mar 2006) 8.37% 4.57%

Barclays Capital Global Aggregate (Euro Hedged) Index 4.70% —

Classes denominated in GBP

Institutional GBP (Hedged) Class Accumulation Shares (Inception 16 Apr 2003) 9.46% 6.14% Institutional GBP (Hedged) Class Income Shares (Inception 01 Jun 2004) 9.47% 6.45% Investor GBP (Hedged) Class Accumulation Shares (Inception 14 Apr 2005) 9.09% 5.51% Administrative GBP (Hedged) Class Income Shares (Inception 02 Feb 2007) 8.93% 6.38% Class E GBP (Hedged) Income Shares (Inception 23 Nov 2009) 8.44% 7.89%

Barclays Capital Global Aggregate (GBP Hedged) Index 4.82% —

Classes denominated in SEK

Institutional SEK (Hedged) Class Accumulation Shares (Inception 08 Nov 2004) 9.94% 4.71%

Barclays Capital Global Aggregate (SEK Hedged) Index 4.93% —

Institutional CHF (Hedged) Class Accumulation Shares (Inception 08 May 2003) 8.79% 3.09% Institutional CHF (Hedged) Class Income Shares (Inception 10 Apr 2003) 8.76% 3.19%

Barclays Capital Global Aggregate (CHF Hedged) Index 4.18% —

Classes denominated in ILS

Institutional ILS (Hedged) Class Accumulation Shares (Inception 13 May 2010) — 3.70%

Barclays Capital Global Aggregate (ILS Hedged) Index — —

Classes denominated in NOK

Institutional NOK (Hedged) Class Accumulation Shares (Inception 30 Jun 2005) 11.35% 5.52% Investor NOK (Hedged) Class Accumulation Shares (Inception 26 Jul 2006) 10.95% 6.72%

Barclays Capital Global Aggregate (NOK Hedged) Index 6.60% —

Classes denominated in NZD

Institutional NZD (Hedged) Class Income Shares (Inception 01 Nov 2004) 12.26% 8.87%

Barclays Capital Global Aggregate (NZD Hedged) Index 7.60% —

» The Global Bond Fund seeks to achieve it investment objective by investing at least two-thirds of its assets in a diversified portfolio of Fixed Income Securities (as defined in the Prospectus) denominated in major world currencies.

» Overweight positions to non-Agency mortgage-backed securities (“MBS”) contributed to performance as prices on these securities appreciated during the period.

» Overweight exposure to the debt of select major financial institutions contributed positively to performance as spreads decreased during the fourth quarter. » An overweight to core European countries

versus peripheral European countries contributed to performance as peripheral sovereign spreads widened relative to core countries.

» Overweight exposure to a basket of emerging and commodity-linked currencies contributed to performance as the Australian dollar, Canadian dollar and Chinese yuan appreciated relative to the US dollar.

» An overweight to US, Australia and UK duration during the latter part of the period detracted from performance as ten-year government rates in these countries sold-off.

» An underweight to Japanese duration detracted from performance as interest rates declined.

(25)

Global Bond Fund

(Cont.)

Total Return Net of Fees and Expenses for the Period Ended 31 December 20101_(Cont.) 1 Year Fund

Inception Classes denominated in SGD

Institutional SGD (Hedged) Class Accumulation Shares (Inception 07 Aug 2009) 9.32% 11.25%

Barclays Capital Global Aggregate (SGD Hedged) Index 4.71% —

2_{Administrative Class Accumulation Shares opened initially on 19 April 2002, closed on 17 July 2002 and re-opened on 14 June 2004.} 3_{The blended performance reflects the performance of the JPMorgan Global Index (Hedged) from 1 April 1998 through 30 November}

2000, after which time the performance reflects the Barclays Capital Global Aggregate (USD Hedged) Index.

(26)

Global Bond Ex-US Fund

Institutional Class Accumulation Shares (Inception 31 Mar 2003) 8.93% 4.82% Institutional Class Income Shares (Inception 09 Nov 2005) 8.96% 5.25% Investor Class Accumulation Shares (Inception 28 Feb 2006) 8.59% 4.79% Administrative Class Accumulation Shares (Inception 14 Sep 2004) 8.47% 4.87%

Class E Income Shares (Inception 30 Apr 2008) 8.06% 5.43%

Citigroup World Government Bond Ex-U.S. Index (USD Hedged) 2.48% 4.14% Classes denominated in EUR

Institutional EUR (Hedged) Class Accumulation Shares (Inception 04 Apr 2006) 8.89% 5.51% Institutional EUR (Hedged) Class Income Shares (Inception 08 Apr 2008) 8.95% 6.66% Citigroup World Government Bond Ex-U.S. Index (Euro Hedged) 2.56% —

» The Global Bond Ex-US Fund seeks to achieve its investment objective by investing at least 70% of its assets in a diversified portfolio of Fixed Income Securities (as defined in the Prospectus) of issuers, having their registered office or predominant operations outside the US, representing at least three non-US countries.

» Overweight positions on non-Agency mortgage-backed securities (“MBS”) contributed to performance as prices on these securities appreciated during the period.

» Overweight exposure to the debt of select major financial institutions contributed positively to performance as spreads decreased during the fourth quarter. » An overweight to core European countries

versus peripheral European countries contributed to performance as peripheral sovereign spreads widened relative to core countries.

» Overweight exposure to a basket of emerging and commodity-linked currencies contributed to performance as the Australian dollar, Canadian dollar and Chinese yuan appreciated relative to the US dollar.

(27)

Global High Yield Bond Fund

Institutional Class Accumulation Shares (Inception 30 Jun 2005) 14.69% 7.63% Institutional Class Income Shares (Inception 30 Dec 2005) 14.72% 7.85% Administrative Class Accumulation Shares (Inception 27 Jun 2008) 14.10% 9.58% Class H Institutional Accumulation Shares (Inception 29 Aug 2008) 14.50% 11.03%

Class M Retail Income Shares (Inception 30 Nov 2010) — 1.90%

Class E Income Shares (Inception 31 Jul 2006) 13.81% 7.08%

BofA Merrill Lynch Global High Yield, BB-B Rated, Constrained Index 14.23% 7.60% Classes denominated in EUR

Institutional EUR (Hedged) Class Accumulation Shares (Inception 02 May 2008) 14.46% 8.12% Institutional EUR (Hedged) Class Income Shares (Inception 30 Dec 2005) 14.58% 7.24% Administrative EUR (Hedged) Class Income Shares (Inception 04 Aug 2010) — 5.02% Class E EUR (Hedged) Accumulation Shares (Inception 31 Mar 2006) 13.40% 6.07% BofA Merrill Lynch Global High Yield, BB-B Rated, Constrained (Euro Hedged) Index 13.45% — Classes denominated in GBP

Institutional GBP (Hedged) Class Income Shares (Inception 30 Dec 2005) 14.63% 8.13% Administrative GBP (Hedged) Class Income Shares (Inception 21 Jul 2010) — 6.89% Class E GBP (Hedged) Income Shares (Inception 15 Jun 2009) 13.70% 21.55% BofA Merrill Lynch Global High Yield, BB-B Rated, Constrained (GBP Hedged) Index 13.91% — Classes denominated in CHF

Institutional CHF (Hedged) Class Accumulation Shares (Inception 16 Feb 2010) — 13.50% BofA Merrill Lynch Global High Yield, BB-B Rated, Constrained (CHF Hedged) Index — — Classes denominated in NOK

Institutional NOK (Hedged) Class Accumulation Shares (Inception 22 Feb 2007) 16.39% 8.01% BofA Merrill Lynch Global High Yield, BB-B Rated, Constrained (NOK Hedged) Index 15.32% —

» The Global High Yield Bond Fund seeks to achieve its investment objective by investing at least two-thirds of its assets in a diversified portfolio of high-yield Fixed Income Securities (as defined in the Prospectus) that are denominated in major world currencies and are rated lower than Baa by Moody’s or BBB by S&P (or, if unrated, determined by the Investment Adviser to be of a comparable quality). » An allocation to investment-grade bonds

detracted from returns as investment grade fixed income underperformed high yield fixed income.

» An overweight to financials benefited performance as banking and insurance issues were among the top performers for the year.

» Security selection within the finance sector detracted from performance as high-grade banks and insurance issuers

underperformed the broader high yield sector.

» An underweight to the consumer non-cyclical sector benefited performance as the consumer non-cyclical sector underperformed the broader high yield index.

» Security selection in the media sector detracted from performance as broadcasting bonds outperformed cable issuers. » An overweight to the chemicals sector

added to performance as this sector outperformed the overall high yield index.