Real Estate Investment Strategies

Appendix MANAGEMENT TEAM The individuals referred to herein may not continue to be employed by PIMCO during the entire term of the Fund. Furthermore, the composition, structure and/or operations of the Fund investment committee may change from time to time (or the Fund may cease to have an investment committee), each without the consent of or notice to limited partners. In addition, a number of members of the professional staff of PIMCO are investors in other funds advised by PIMCO and are actively involved in managing the investment decisions of these funds, as well as investment decisions of other clients of PIMCO. Accordingly, the members of the professional staff of PIMCO will have demands on their time for the investment, monitoring and other functions of other funds and other clients advised by PIMCO. OUTLOOK Statements concerning financial market trends or portfolio strategies are based on current market conditions, which will fluctuate. Outlook and strategies are subject to change without notice. PORTFOLIO STRUCTURE Portfolio structure is subject to change without notice and may not be representative of current or future allocations. RISK The Fund will not be subject to the same regulatory requirements as mutual funds. The Fund is expected to be leveraged and to engage in speculative investment practices that will increase the risk of investment loss. The Fund performance could be volatile; an investor could lose all or a substantial amount of its investment. The Fund manager will have broad trading authority over the Fund. The use of a single adviser applying generally similar trading programs could mean lack of diversification and, consequently, higher risk. The Fund will not be restricted to tracking a particular benchmark. There is no secondary market for investors' interest and none is expected to develop. There will be restrictions on transferring interests in the Fund and limited liquidity provisions. The Fund's fees and expenses may offset the its trading profits. The Fund will not be required to provide periodic pricing or valuation information to investors. The Fund will involve complex tax structures and there may be delays in distributing important tax information. A purchase of Fund interests involves a high degree of risk that each prospective investor must carefully consider prior to making such an investment. Investors should thoroughly review the PPM for a more complete description of these risks. Prospective investors are advised that investment in the Fund is suitable only for persons of adequate financial means who have no need for liquidity with respect to their investment and who can bear the economic risk, including the possible complete loss, of their investment. CERTAIN RISKS The Fund's investments are expected to give rise to numerous risks. Investments in residential/commercial mortgage loans and consumer loans are subject to risks that include prepayment, delinquency, foreclosure, risks of loss, servicing risks and adverse regulatory developments, which risks may be heightened in the case of non-performing loans. The Fund will also have exposure to such risks through its investments in mortgage and asset-backed securities, which are highly complex instruments that may be sensitive to changes in interest rates and subject to early repayment risk. Structured products such as collateralized debt obligations are also highly complex instruments, typically involving a high degree of risk; use of these instruments may involve derivative instruments that could lose more than the principal amount invested. The Fund will also be subject to real estate-related risks, which include new regulatory or legislative developments, the attractiveness and location of properties, the financial condition of tenants, potential liability under environmental and other laws, as well as natural disasters and other factors beyond the Fund's control. Equity investments may decline in value due to both real and perceived general market, economic and industry conditions, while debt investments are subject to credit, interest rate and other risks. Investing in banks and related entities is a highly complex field subject to extensive regulation, and investments in such entities or other operating companies may give rise to control person liability and other risks. In addition, there can be no assurance that PIMCO's strategies with respect to any investment will be capable of implementation or, if implemented, will be successful. Investing in foreign denominated and/or domiciled securities may involve heightened risk due to currency fluctuations, and economic and political risks. The current regulatory climate relating to the Fund and its investments is uncertain and rapidly evolving and future developments could adversely affect the Fund and/or its investments. The foregoing is only a description of certain key risks relating to the Fund's investments, and is not a complete enumeration of all risks to which the Fund will be subject. The Fund will be subject to numerous other risks not described herein. Prospective investors must carefully review the Documents (including, without limitation, the risk factors contained in the PPM) prior to making any investment decision. TARGET RETURN The Target Return is not a guarantee, projection or prediction and is not indicative of future results of the Fund. There can be no assurance that the Fund will achieve the Target Return and actual results may vary significantly from the Target Return. Investors may experience different investment returns as a result of (among other things) having pre-funded their commitments due to the difference in timing between the date on which such investors pre-fund and the application of their capital contributions in satisfaction of a capital call. An investor may lose all of its money by investing in the Fund. PIMCO 28

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