For professional use only Q2 2021 PIMCO GIS Emerging Markets Bond ESG Fund POSITIONING PERFORMANCE What we like: Performance (% net of fees) YTD 3-mon 3-yrs 5-yrs SI* • Best-in-class green/social/sustainable Fund -0.50 4.53 7.20 5.55 5.39 corporate bonds (South Korea, Benchmark -1.07 4.06 6.74 4.59 5.81 Brazil, India) • Strong SDG/green Excess returns (bps) 57 47 46 96 -42 frameworks (Chile, Mexico, Performance for the GIS Emerging Markets Bond ESG Fund, institutional accumulation USD-share class (ISIN: IE00B61N1B75) Benchmark: Inception to August 1, 2019, JPMorgan Emerging Markets Bond Index (EMBI) Global adjusted for Socially Responsible Egypt) Investment (SRI) filter. August 2, 2019 onwards JPM ESG Emerging Markets Bond Index (EMBI) Global Diversified. Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. • Higher quality, investment- The fund is actively managed in reference to the JPMorgan Emerging Markets Bond Index (EMBI) ESG Global Diversified as further grade (Israel, Indonesia outlined in the prospectus and key investor information document. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed. Current performance may be lower or higher than corporates and quasi- performance shown. For performance current to the most recent month-end, visit www.pimco.com sovereigns) • Credible reform stories/IMF ATTRIBUTION Q2 2021 backstop (Jordan, Ivory Coast) Contributors Detractors • Harvest premia outside of • Overweight to Ecuador, which • U.S. duration positioning index universe (Basket of outperformed the index on the back of a EUR-denom. paper from positive electoral surprise of market • Exposure to select Chinese quasi- Romania and Serbia) friendly Guillermo Lasso in the country’s sovereign issuers, which underperformed the presidential run-off index due to credit concerns • Select BB-rated names (Guatemala, South Africa) • Security selection in Ukraine, as the country benefitted from the approval of a World Bank loan in support of reforms What we do not like: and to aid the economic recovery • Void fossil fuels • Underweight to Colombia, which underperformed the index on the back • Social and governance of disputes over the government’s controversies (Exclude Saudi attempt to raise taxes Arabia, Tajikistan, Belarus) • Fully priced-in good stories KEY STATISTICS (Philippines, Qatar, UAE) Fund Benchmark • Sanctions/trade war risk (Russia) Market Value (USD mm) 2,380.2 Duration (Years) 7.97 8.35 • Fundamentally weak credits (Bolivia, Honduras, Lebanon) Avg. Maturity (Years) 13.07 Estimated YTM (%) 5.01 4.08 EM Spread (Years) 7.60 7.94 NOTE: Portfolio structure is subject to change without notice and may not be representative of current or future allocations. Spread compares U.S. treasuries with a given security type, such as mortgages, corporate credit, swaps, etc. SOURCE FOR ALL GRAPHS (UNLESS OTHERWISE STATED): PIMCO. As of 31 December 2020 unless otherwise stated * Account inception date: 16 April 2010 Past performance is not a guarantee or a reliable indicator of future results. For illustrative purposes only. For professional use only ESG STATISTICS COMPARISON GIS EM Index EM ESG GIS EM Bond ESG (JESG Improvement Bond Fund Fund EMBI GD)* Relative to Index Average MSCI ESG score (all) 4.56 3.96 4.23 +8% Average MSCI ESG score (corp) 4.90 2.91 3.57 +37% Average PIMCO ESG score (corp) 3.17 2.43 2.73 +16% Average MSCI ESG score (EM sovereigns) 4.10 3.33 4.10 +0% Average PIMCO ESG score (EM sovereigns) 2.80 2.40 2.72 +3% Green/social/sustainable bond exposure (% MV) 23.0% 1.5% 3.1% 7.4x Carbon intensity (corp) ((Scope 1, 2 tCO2 e)/Revenues USD m) 243 1,276 268 -9% Absolute carbon emissions (corp) (Scope 1 tCO2 e) 1,037,497 40,836,492 2,426,184 -57% Absolute carbon emissions (corp) (Scope 2 tCO2 e) 306,868 2,933,455 19,535,437 -98% Exposure to energy sector GIS EM Bond ESG Fund Green / social / sustainable bond Benchmark* exposure (% MV) GIS EM Bond Fund** 8% 30 6.5% 23.0 25 6% 5.3% 20 4% 15 10 2% 0.4% 0.4% 5 Zero0.0% Zero ZeroZero ZeroZero0.0% 0% 0 Independent E&PIntegrated Oil Oilfield Services Refining Dec '18 Jun '19 Dec '19 Jun '20 Dec '20 Jun '21 Green / social / sustainable exposure by country (% MV) Total: 23.0% Social/Sustainable Green 5 4.1 4 3.2 3 1.6 1.5 1.5 2 1.2 1.0 1.0 1.0 0.7 0.7 1 0.6 0 As of 30 June 2021. *Benchmark: JP Morgan ESG EMBI Global Diversified The Average MSCI ESG Score is calculated as the weighted average of all the rated corporates and EM sovereign securities in the portfolio, using MSCI rating data. MSCI ESG scores are based on a 1-10 score with 1 being poor and 10 being excellent. These scores correspond to a rating between best (AAA) and worst (CCC) of the underlying MSCI rated corporate portfolio holdings. This number may differ from ESG scores calculated by other providers. The PIMCO Rating is based on corporate exposure only. PIMCO ESG scores are based on a 1-5 scale with 1 being poor and 5 being excellent. This number may differ from ESG scores calculated by other providers. The PIMCO Rating is based on corporate exposure only. PIMCO ESG scores are based on a 1-5 scale with 1 being poor and 5 being excellent. This number may differ from ESG scores calculated by other providers. For professional use only SUSTAINABLE INVESTMENT EXAMPLES: SOVEREIGNS Strong green bond framework Engagement on sustainability trajectory Issuer Egypt government Issuer Asia sovereign Yield at Yield at 5.25% 2.30% issuance issuance Green • Target of generating 42% of Green • No noted deficiencies in green bond energy from renewables by bond bond framework framework 2035 framework • New legislation passed to cut • Green Financing Framework red tape, attract investment aligns with ICMA Green Bond Country from domestic and global Principles, and management view investors of proceeds follows • One provision weakens earmarking in the Green environmental protections (e.g., Financing Register removes need to conduct environmental impact assessment for projects) PIMCO • Analyzed and deemed green PIMCO • Participated in new issue, but, approach framework strong, approved approach in parallel, engaging with and value- for ESG portfolios and value- government to discuss add • Participated as anchor add implications of new legislation investor, harvested significant on deforestation, proper new issuance premium practices and oversight to implement Bond yield comparison at green bond Bond yield comparison at green bond issuance (%) issuance (%) 15bps cheap to 16bps cheap to 6.00 secondary 2.50 2.30 secondary 5.25 5.10 2.14 5.00 2.00 4.00 1.50 3.00 Yield Yield 1.00 2.00 0.50 1.00 0.00 0.00 Green Government* Green Government* For illustrative purposes only. As of 31 December 2020. SOURCE: PIMCO, Bloomberg, Maplecroft, Environmental Finance. *Bond of similar rating, maturity, and spread duration shown as non-ESG comparison The above is presented for illustrative purposes only, as a general example of PIMCO’s ESG research capability and is not intended to represent any specific portfolio's performance or how a portfolio will be invested or allocated at any particular time. PIMCO’s ESG processes may yield different results than other investment managers and a company’s ESG rankings and factors may change over time. Past performance is not indicative of future results. For professional use only COUNTRY EXPOSURE GIS EM Bond ESG Fund Benchmark Variance BOND % SPREAD yrs BOND % SPREAD yrs BOND % SPREAD yrs Brazil 6.09 0.36 3.28 0.25 2.81 0.11 Ukraine 4.70 0.19 2.81 0.14 1.89 0.05 South Africa 3.78 0.27 2.51 0.19 1.28 0.08 Egypt 3.66 0.17 2.04 0.14 1.62 0.04 Indonesia 3.16 0.39 3.78 0.33 -0.62 0.06 India 3.14 0.17 0.00 0.00 3.14 0.17 Oman 3.13 0.25 4.10 0.25 -0.98 0.00 China 3.12 0.20 1.05 0.06 2.07 0.14 Peru 2.93 0.26 2.78 0.31 0.15 -0.05 Panama 2.91 0.50 4.11 0.46 -1.20 0.04 Mexico 2.68 0.29 2.77 0.32 -0.10 -0.03 Turkey 2.49 0.17 2.73 0.14 -0.23 0.03 Dominican Republic 2.48 0.26 3.02 0.27 -0.54 -0.01 South Korea 2.44 0.19 0.00 0.00 2.44 0.19 Ghana 2.20 0.20 2.69 0.16 -0.49 0.03 NOTE: Portfolio structure is subject to change without notice and may not be representative of current or future allocations. PIMCO ESG PHILOSOPHY & PROCESS At PIMCO our approach to ESG investing rests on supplemented by a dynamic list of issuers that we two pillars. First, we fully integrate ESG analysis in have identified as having business practices our firm wide investment process. We do this misaligned with ESG principles or which have failed because we believe it makes good investment sense, to demonstrate a willingness to improve or respond to consistent with our goal of generating strong risk- PIMCO’s engagement efforts. adjusted returns for clients. Second, our dedicated investment platform, PIMCO ESG, includes a range of portfolios designed for investors who wish to target Evaluation positive social and environmental change.