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811-23779 N-2 N-2 true false 20 true true 24 true PIMCO Flexible Real Estate Income Fund 650 Newport Center Drive Newport Beach 92660 844 312-2113 Ryan G. Leshaw 650 Newport Center Drive Newport Beach CA 92660 As soon as practicable after the effective date of this Registration Statement. false true false false false false true false false false false false false false true false true false No false false <div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">This table is intended to assist investors in understanding the various </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">costs and expenses directly or indirectly associated with investing in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund. You may qualify for sales charge discounts on Class A-4 Common </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Shares of the Fund if you and your family invest, or agree to invest in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">future, in a certain amount of Class A-3 and/or Class A-4 common </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">shares of the Fund (to the extent available) or other eligible closed-end </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interval funds that are sponsored by PIMCO. More information about </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">these and other discounts is available in the “Plan of Distribution-Share </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Classes” section on page 61 of this prospectus or from your financial </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">advisor.</div> <div style="line-height:12.0pt;margin-top:6pt;text-align:left"><div style="margin-top:6pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Shareholder Transaction Expenses (fees paid directly from </div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">your investment):</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 1pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;"> </div></div></div></div><div style="line-height:0.0pt;margin-top:6pt;text-align:left"><div style="margin-top:6pt"></div></div><div style="margin-top:0.0pt"> <table cellpadding="0" cellspacing="0" style="text-align:start; border-bottom:0.5pt solid #00687D;empty-cells:show;width:260pt"> <tr style="height:17pt"> <td style="border-right:0.5pt solid #FFFFFF;padding-bottom:4.5pt;padding-top:4.5pt;vertical-align:Bottom;width:146.8pt"><div style="line-height:0.5pt;text-align:left"></div></td> <td style="border-right:0.5pt solid #FFFFFF;padding-bottom:4.5pt;padding-top:4.5pt;vertical-align:Bottom;width:25.08pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:2.25pt;margin-right:2.25pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Inst</div></div></div><div style="margin-left:2.25pt;margin-right:2.25pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Class</div></div></div></div></td> <td style="border-right:0.5pt solid #FFFFFF;padding-bottom:4.5pt;padding-top:4.5pt;vertical-align:Bottom;width:31.27pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:2.25pt;margin-right:2.25pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Class A-3</div></div></div></div></td> <td style="border-right:0.5pt solid #FFFFFF;padding-bottom:4.5pt;padding-top:4.5pt;vertical-align:Bottom;width:31.27pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:2.25pt;margin-right:2.25pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Class A-4</div></div></div></div></td> <td style="padding-bottom:4.5pt;padding-top:4.5pt;vertical-align:Bottom;width:25.58pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:2.25pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Class F</div></div></div></div></td></tr> <tr style="height:21pt"> <td style="border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:4.5pt;vertical-align:Top;width:146.8pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:3pt;margin-right:2.25pt;text-align:Left;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Maximum Initial Sales Charge (Load) Imposed on </div></div><div style="margin-left:3pt;margin-right:2.25pt;text-align:Left;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Purchases (as a percentage of offering price)</div></div></div></td> <td style="border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:4.5pt;vertical-align:Top;width:25.08pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:2.25pt;margin-right:2.25pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">None</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 4.5pt; position: relative; top: -3pt; letter-spacing: 0px;display:inline;">(1)</div> <div style="clear:right"></div></div></div></td> <td style="border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:4.5pt;vertical-align:Top;width:31.27pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:2.25pt;margin-right:2.25pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">None</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 4.5pt; position: relative; top: -3pt; letter-spacing: 0px;display:inline;">(1)</div> <div style="clear:right"></div></div></div></td> <td style="border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:4.5pt;vertical-align:Top;width:31.27pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:2.25pt;margin-right:2.25pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">3.00%</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 4.5pt; position: relative; top: -3pt; letter-spacing: 0px;display:inline;">(2)</div> <div style="clear:right"></div></div></div></td> <td style="padding-bottom:3.5pt;padding-top:4.5pt;vertical-align:Top;width:25.58pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:2.25pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">None</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 4.5pt; position: relative; top: -3pt; letter-spacing: 0px;display:inline;">(1)</div> <div style="clear:right"></div></div></div></td></tr> <tr style="height:25.5pt"> <td style="background-color:#ECF6F8;border-right:0.5pt solid #FFFFFF;padding-bottom:2.5pt;padding-top:3.5pt;vertical-align:Top;width:146.8pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:3pt;margin-right:2.25pt;text-align:Left;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Maximum Early Withdrawal Charge (Load) (as a </div></div><div style="margin-left:3pt;margin-right:2.25pt;text-align:Left;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">percentage of the lower of the original purchase </div></div><div style="margin-left:3pt;margin-right:2.25pt;text-align:Left;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">price or repurchase price)</div></div></div></td> <td style="background-color:#ECF6F8;border-right:0.5pt solid #FFFFFF;padding-bottom:2.5pt;padding-top:3.5pt;vertical-align:Top;width:25.08pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:2.25pt;margin-right:2.25pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">None</div></div></div></td> <td style="background-color:#ECF6F8;border-right:0.5pt solid #FFFFFF;padding-bottom:2.5pt;padding-top:3.5pt;vertical-align:Top;width:31.27pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:2.25pt;margin-right:2.25pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">None</div></div></div></td> <td style="background-color:#ECF6F8;border-right:0.5pt solid #FFFFFF;padding-bottom:2.5pt;padding-top:3.5pt;vertical-align:Top;width:31.27pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:2.25pt;margin-right:2.25pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">1.00%</div></div></div></td> <td style="background-color:#ECF6F8;padding-bottom:2.5pt;padding-top:3.5pt;vertical-align:Top;width:25.58pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:2.25pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">1.70%</div></div></div></td></tr></table></div><div><div style="clear:both;margin-top:2pt;position:relative;width:100%"><div style="float:left;line-height:10.0pt;text-align:left;width:3.84pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">1</div></div><div style="float:left;line-height:10.0pt;margin-left:6.16pt;text-align:left;width:245.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">While neither the Fund nor the Distributor impose an initial sales charge, if you buy </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">Institutional Class, Class A-3 or Class F Common Shares through certain financial firms, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">they may directly charge you transaction or other fees in such amount as they may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">determine. Please consult your financial firm for additional information.</div></div></div><div style="clear: both; position: relative; max-height: 0px;"></div></div><div><div style="clear:both;margin-top:2pt;position:relative;width:100%"><div style="float:left;line-height:10.0pt;text-align:left;width:3.84pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">2</div></div><div style="float:left;line-height:10.0pt;margin-left:6.16pt;text-align:left;width:245.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">Although the Fund is permitted to charge a maximum sales charge of 3.00%, the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">has elected to currently charge a maximum sales charge of 2.00%. See “Plan of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">Distribution - Purchasing Shares - Reductions and Waivers of Initial Sales Charges and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">EWCs” - Class A-4 Common Shares in this prospectus for more information on sales </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">charge waivers and discounts.</div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div> 0 0 0.03 0 0 0 0.01 0.017 <div style="line-height:14.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Annual Fund Operating Expenses (<div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 12pt; letter-spacing: 0px; top: 0px;display:inline;">as a percentage </div><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 12pt; letter-spacing: 0px; top: 0px;display:inline;">of net assets attributable to Common Shares</div><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;"> </div></div><div style="font-weight:bold;display:inline;">(reflecting leverage attributable to Preferred </div></div></div><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Shares and reverse repurchase agreements)):</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 1pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;"> </div></div></div></div><div style="line-height:0.0pt;margin-top:6pt;text-align:left"><div style="margin-top:6pt"></div></div><div style="margin-top:0.0pt"> <table cellpadding="0" cellspacing="0" style="text-align:start; border-bottom:0.5pt solid #00687D;empty-cells:show;width:260pt"> <tr style="height:17pt"> <td style="border-right:0.5pt solid #FFFFFF;padding-bottom:4.5pt;padding-top:4.5pt;vertical-align:Bottom;width:141.78pt"><div style="line-height:0.5pt;text-align:left"></div></td> <td style="border-right:0.5pt solid #FFFFFF;padding-bottom:4.5pt;padding-top:4.5pt;vertical-align:Bottom;width:27.59pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:2.25pt;margin-right:2.25pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Inst</div></div></div><div style="margin-left:2.25pt;margin-right:2.25pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Class</div></div></div></div></td> <td style="border-right:0.5pt solid #FFFFFF;padding-bottom:4.5pt;padding-top:4.5pt;vertical-align:Bottom;width:31.27pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:2.25pt;margin-right:2.25pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Class A-3</div></div></div></div></td> <td style="border-right:0.5pt solid #FFFFFF;padding-bottom:4.5pt;padding-top:4.5pt;vertical-align:Bottom;width:31.27pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:2.25pt;margin-right:2.25pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Class A-4</div></div></div></div></td> <td style="padding-bottom:4.5pt;padding-top:4.5pt;vertical-align:Bottom;width:28.09pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:2.25pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Class F</div></div></div></div></td></tr> <tr style="height:13pt"> <td style="border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:4.5pt;vertical-align:Top;width:141.78pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:3pt;margin-right:2.25pt;text-align:Left;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Advisory Fees</div></div></div></td> <td style="border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:4.5pt;vertical-align:Top;width:27.59pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:2.25pt;margin-right:2.25pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">1.25%</div></div></div></td> <td style="border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:4.5pt;vertical-align:Top;width:31.27pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:2.25pt;margin-right:2.25pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">1.25%</div></div></div></td> <td style="border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:4.5pt;vertical-align:Top;width:31.27pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:2.25pt;margin-right:2.25pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">1.25%</div></div></div></td> <td style="padding-bottom:3.5pt;padding-top:4.5pt;vertical-align:Top;width:28.09pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:2.25pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">1.25%</div></div></div></td></tr> <tr style="height:12pt"> <td style="background-color:#ECF6F8;border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:141.78pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:3pt;margin-right:2.25pt;text-align:Left;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Administrative Fees</div></div></div></td> <td style="background-color:#ECF6F8;border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:27.59pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:2.25pt;margin-right:2.25pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">0.50%</div></div></div></td> <td style="background-color:#ECF6F8;border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:31.27pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:2.25pt;margin-right:2.25pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">0.50%</div></div></div></td> <td style="background-color:#ECF6F8;border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:31.27pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:2.25pt;margin-right:2.25pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">0.50%</div></div></div></td> <td style="background-color:#ECF6F8;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:28.09pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:2.25pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">0.50%</div></div></div></td></tr> <tr style="height:12pt"> <td style="border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:141.78pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:3pt;margin-right:2.25pt;text-align:Left;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Distribution and/or Service (12b-1) Fees</div></div></div></td> <td style="border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:27.59pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:2.25pt;margin-right:2.25pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="display:inline;"><div style="-sec-ix-hidden:hidden130792725;display:inline;">N/A</div></div></div></div></div></td> <td style="border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:31.27pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:2.25pt;margin-right:2.25pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">0.75%</div></div></div></td> <td style="border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:31.27pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:2.25pt;margin-right:2.25pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">0.75%</div></div></div></td> <td style="padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:28.09pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:2.25pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="display:inline;"><div style="-sec-ix-hidden:hidden130792726;display:inline;">N/A</div></div></div></div></div></td></tr> <tr style="height:12pt"> <td style="background-color:#ECF6F8;border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:141.78pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:3pt;margin-right:2.25pt;text-align:Left;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Interest Payments on Borrowed Funds</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 4.5pt; margin-left: 0pt; position: relative; top: -3pt; letter-spacing: 0px;display:inline;">(1)(2)</div> <div style="clear:right"></div></div></div></td> <td style="background-color:#ECF6F8;border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:27.59pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:2.25pt;margin-right:2.25pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">2.80%</div></div></div></td> <td style="background-color:#ECF6F8;border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:31.27pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:2.25pt;margin-right:2.25pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">2.80%</div></div></div></td> <td style="background-color:#ECF6F8;border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:31.27pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:2.25pt;margin-right:2.25pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">2.80%</div></div></div></td> <td style="background-color:#ECF6F8;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:28.09pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:2.25pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">2.80%</div></div></div></td></tr> <tr style="height:12pt"> <td style="border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:141.78pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:3pt;margin-right:2.25pt;text-align:Left;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Dividend and Other Costs on Preferred Shares</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 4.5pt; margin-left: 0pt; position: relative; top: -3pt; letter-spacing: 0px;display:inline;">(1)(3)</div> <div style="clear:right"></div></div></div></td> <td style="border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:27.59pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:2.25pt;margin-right:2.25pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">0.03%</div></div></div></td> <td style="border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:31.27pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:2.25pt;margin-right:2.25pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">0.03%</div></div></div></td> <td style="border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:31.27pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:2.25pt;margin-right:2.25pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">0.03%</div></div></div></td> <td style="padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:28.09pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:2.25pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">0.03%</div></div></div></td></tr> <tr style="height:12pt"> <td style="background-color:#ECF6F8;border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:141.78pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:3pt;margin-right:2.25pt;text-align:Left;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Property-Level Expenses</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 4.5pt; margin-left: 0pt; position: relative; top: -3pt; letter-spacing: 0px;display:inline;">(4)</div> <div style="clear:right"></div></div></div></td> <td style="background-color:#ECF6F8;border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:27.59pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:2.25pt;margin-right:2.25pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="-sec-ix-hidden:Fact_130792727;display:inline;">N/A</div></div></div></div></td> <td style="background-color:#ECF6F8;border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:31.27pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:2.25pt;margin-right:2.25pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="-sec-ix-hidden:Fact_130792732;display:inline;">N/A</div></div></div></div></td> <td style="background-color:#ECF6F8;border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:31.27pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:2.25pt;margin-right:2.25pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="-sec-ix-hidden:Fact_130792731;display:inline;">N/A</div></div></div></div></td> <td style="background-color:#ECF6F8;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:28.09pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:2.25pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="-sec-ix-hidden:Fact_130792730;display:inline;">N/A</div></div></div></div></td></tr> <tr style="height:12pt"> <td style="border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:141.78pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:3pt;margin-right:2.25pt;text-align:Left;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Other Expenses</div></div></div></td> <td style="border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:27.59pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:2.25pt;margin-right:2.25pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">0.80%</div></div></div></td> <td style="border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:31.27pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:2.25pt;margin-right:2.25pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">0.80%</div></div></div></td> <td style="border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:31.27pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:2.25pt;margin-right:2.25pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">0.80%</div></div></div></td> <td style="padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:28.09pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:2.25pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">0.80%</div></div></div></td></tr> <tr style="height:12pt"> <td style="background-color:#ECF6F8;border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:141.78pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:3pt;margin-right:2.25pt;text-align:Left;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Total Annual Fund Operating Expenses</div></div></div></div></td> <td style="background-color:#ECF6F8;border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:27.59pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:2.25pt;margin-right:2.25pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">5.38%</div></div></div></div></td> <td style="background-color:#ECF6F8;border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:31.27pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:2.25pt;margin-right:2.25pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">6.13%</div></div></div></div></td> <td style="background-color:#ECF6F8;border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:31.27pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:2.25pt;margin-right:2.25pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">6.13%</div></div></div></div></td> <td style="background-color:#ECF6F8;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:28.09pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:2.25pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">5.38%</div></div></div></div></td></tr> <tr style="height:12pt"> <td style="border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:141.78pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:3pt;margin-right:2.25pt;text-align:Left;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Fee Waiver and/or Expense Reimbursement</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 4.5pt; margin-left: 0pt; position: relative; top: -3pt; letter-spacing: 0px;display:inline;">(5)</div> <div style="clear:right"></div></div></div></td> <td style="border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:27.59pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:2.25pt;margin-right:2.25pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">(0.69)%</div></div></div></td> <td style="border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:31.27pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:2.25pt;margin-right:2.25pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">(0.69)%</div></div></div></td> <td style="border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:31.27pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:2.25pt;margin-right:2.25pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">(0.69)%</div></div></div></td> <td style="padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:28.09pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:2.25pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">(0.69)%</div></div></div></td></tr> <tr style="height:25.5pt"> <td style="background-color:#ECF6F8;border-right:0.5pt solid #FFFFFF;padding-bottom:2.5pt;padding-top:3.5pt;vertical-align:Top;width:141.78pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:3pt;margin-right:2.25pt;text-align:Left;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Total Annual Fund Operating Expenses </div></div></div><div style="margin-left:3pt;margin-right:2.25pt;text-align:Left;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">after Fee Waiver and/or Expense </div></div></div><div style="margin-left:3pt;margin-right:2.25pt;text-align:Left;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Reimbursement</div></div></div></div></td> <td style="background-color:#ECF6F8;border-right:0.5pt solid #FFFFFF;padding-bottom:2.5pt;padding-top:3.5pt;vertical-align:Top;width:27.59pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:2.25pt;margin-right:2.25pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">4.69%</div></div></div></div></td> <td style="background-color:#ECF6F8;border-right:0.5pt solid #FFFFFF;padding-bottom:2.5pt;padding-top:3.5pt;vertical-align:Top;width:31.27pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:2.25pt;margin-right:2.25pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">5.44%</div></div></div></div></td> <td style="background-color:#ECF6F8;border-right:0.5pt solid #FFFFFF;padding-bottom:2.5pt;padding-top:3.5pt;vertical-align:Top;width:31.27pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:2.25pt;margin-right:2.25pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">5.44%</div></div></div></div></td> <td style="background-color:#ECF6F8;padding-bottom:2.5pt;padding-top:3.5pt;vertical-align:Top;width:28.09pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:2.25pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">4.69%</div></div></div></div></td></tr></table></div><div><div style="clear:both;margin-top:2pt;position:relative;width:100%"><div style="float:left;line-height:10.0pt;text-align:left;width:3.84pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">1</div></div><div style="float:left;line-height:10.0pt;margin-left:6.16pt;text-align:left;width:245.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">“Interest Payments on Borrowed Funds” and “Dividends and Other Costs on Preferred </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">Shares” are borne by the Fund separately from the advisory and administrative fees </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">paid to PIMCO. Excluding such expenses, estimated Total Annual Fund Operating </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">Expenses After Fee Waiver and/or Expense Reimbursement are 1.86% for Institutional </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">Class and Class F shares and 2.61% for Class A-3 and Class A-4 shares.</div></div></div><div style="clear: both; position: relative; max-height: 0px;"></div></div><div><div style="clear:both;margin-top:2pt;position:relative;width:100%"><div style="float:left;line-height:10.0pt;text-align:left;width:3.84pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">2</div></div><div style="float:left;line-height:10.0pt;margin-left:6.16pt;text-align:left;width:245.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">“Interest Payments on Borrowed Funds” reflects the Fund’s use of leverage averaged </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">over the period ended December 31, 2023 in an amount equal to 43.20% of the </div></div></div><div style="clear: both; position: relative; max-height: 0px;"></div></div> <div style="line-height:10.0pt;margin-left:10pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">Fund's average net assets (including assets attributable to such leverage) at an interest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">rate of 6.26%. The actual amount of leverage used and borrowing expenses borne by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund will vary over time in accordance with the level of the Fund's use of secured </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">credit facilities from certain financial institutions and/or other forms of borrowings and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">variations in market interest rates. Borrowing expense is required to be treated as an </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">expense of the Fund for accounting purposes. Any associated income or gains (or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">losses) realized from leverage obtained through such instruments is not reflected in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">Annual Fund Operating Expenses table above, but would be reflected in the Fund's </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">performance result.</div></div><div><div style="clear:both;margin-top:2pt;position:relative;width:100%"><div style="float:left;line-height:10.0pt;text-align:left;width:3.84pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">3</div></div><div style="float:left;line-height:10.0pt;margin-left:6.16pt;text-align:left;width:245.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">“Dividend and Other Costs on Preferred Shares” reflects the Fund’s issuance of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">Preferred Shares in an amount equal to 0.28% of the Fund's average net assets, at an </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">estimated annual dividend cost to the Fund of 12.00%. See “Description of Capital </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">Structure and Shares.” Dividend and Other Costs on Preferred Shares are borne directly </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">by the Fund and will be reflected in the Fund's financial statements.</div></div></div><div style="clear: both; position: relative; max-height: 0px;"></div></div><div><div style="clear:both;margin-top:2pt;position:relative;width:100%"><div style="float:left;line-height:10.0pt;text-align:left;width:3.84pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">4</div></div><div style="float:left;line-height:10.0pt;margin-left:6.16pt;text-align:left;width:245.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">“Property-Level Expenses” represents estimated fees and expenses related to property </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">management, disposition expenses, any other expenses related to investments in real </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">property by the Fund’s consolidated subsidiaries. In addition, the Fund also expects </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">that its unconsolidated operating entities will incur property management, disposition </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">and other expenses related to investments in real property, the costs of which will be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">indirectly borne by Common Shareholders. The Fund’s real estate operating </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">subsidiaries have and expect in the future to hire affiliated or unaffiliated property </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">managers or other service providers (who could also be joint venture partners for an </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">investment) at prevailing market rates to perform management and specialized </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">services for the Fund’s commercial real estate (“CRE”) investments.</div></div></div><div style="clear: both; position: relative; max-height: 0px;"></div></div><div><div style="clear:both;margin-top:2pt;position:relative;width:100%"><div style="float:left;line-height:10.0pt;text-align:left;width:3.84pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">5</div></div><div style="float:left;line-height:10.0pt;margin-left:6.16pt;text-align:left;width:245.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">PIMCO has contractually agreed (the “Expense Limitation Agreement”), through </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">May 1, 2026, to waive its supervisory and administrative fee, or reimburse the Fund, to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">the extent that organizational expenses (including any initial offering expenses), the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">payment of expenses associated with obtaining or maintaining a Legal Entity Identifier </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">(“LEI”) and/or payment of the Fund’s pro rata Trustees’ fees (the “Specified Expenses”) </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">in any fiscal year exceed 0.07% of the Fund’s average daily net assets (the “Expense </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">Limit”). Under the Expense Limitation Agreement, if, in any month during which the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">Administration Agreement is in effect, the estimated annualized Specified Expenses of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund for that month are less than the Expense Limit, PIMCO shall be entitled to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">reimbursement by the Fund of any Supervisory and Administrative Fees waived or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">reduced pursuant to the Expense Limitation Agreement (the “Reimbursement </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">Amount”) during the previous thirty-six (36) months, to the extent that the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">annualized Specified Expenses plus the amount so reimbursed does not exceed, for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">such month, the Expense Limit (or the expense limit in place at the time the amount </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">being recouped was originally waived if lower than the Expense Limit) or any future </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">expense limitation that may be in place, provided that such amount paid to PIMCO will </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">in no event exceed the total Reimbursement Amount and will not include any amounts </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">previously reimbursed to PIMCO. The Expense Limitation Agreement shall </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">automatically renew for one-year terms unless PIMCO provides written notice to the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">Fund of the termination of the Expense Limitation Agreement, which notice shall be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">received by the Fund at least 30 days prior to the end of the then-current term. In </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">addition, the Expense Limitation Agreement shall terminate upon termination of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">Administration Agreement, or it may be terminated by the Fund, without payment of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">any penalty, upon ninety (90) days’ prior written notice to PIMCO at its principal place </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">of business.</div></div></div><div style="clear: both; position: relative; max-height: 0px;"></div></div> <div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 12pt; letter-spacing: 0px; top: 0px;display:inline;">as a percentage </div><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 12pt; letter-spacing: 0px; top: 0px;display:inline;">of net assets attributable to Common Shares</div> 0.0125 0.0125 0.0125 0.0125 0.005 0.005 0.005 0.005 0.0075 0.0075 0.028 0.028 0.028 0.028 0.0003 0.0003 0.0003 0.0003 0.008 0.008 0.008 0.008 0.0538 0.0613 0.0613 0.0538 -0.0069 -0.0069 -0.0069 -0.0069 0.0469 0.0544 0.0544 0.0469 <div style="line-height:14.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Example</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">As required by relevant SEC regulations, the following example </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">illustrates the expenses (including any applicable sales charge) that you </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">would pay on a $1,000 investment in the Common Shares, assuming a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">5% annual return</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 6.5pt; position: relative; top: -4.25pt; letter-spacing: 0px;display:inline;">(1)</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">:</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">If you redeem your shares at the end of each period:</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 1pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="margin-top:0.0pt"> <table cellpadding="0" cellspacing="0" style="text-align:start; border-bottom:0.5pt solid #00687D;empty-cells:show;width:260pt"> <tr style="height:8.5pt"> <td style="border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Bottom;width:132.84pt"><div style="line-height:0.5pt;text-align:left"><div style="margin-left: 3pt; margin-right: 5.75pt; text-align: center; white-space: nowrap; font-size: 7pt;"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;"> </div></div></div></div></td> <td style="border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Bottom;width:29.55pt"><div style="line-height:7pt;text-align:left"><div style="margin-left:5.75pt;margin-right:5.75pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">1 Year</div></div></div></div></td> <td style="border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Bottom;width:32.32pt"><div style="line-height:7pt;text-align:left"><div style="margin-left:5.75pt;margin-right:5.75pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">3 Years</div></div></div></div></td> <td style="border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Bottom;width:32.32pt"><div style="line-height:7pt;text-align:left"><div style="margin-left:5.75pt;margin-right:5.75pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">5 Years</div></div></div></div></td> <td style="padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Bottom;width:32.96pt"><div style="line-height:7pt;text-align:left"><div style="margin-left:5.75pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">10 Years</div></div></div></div></td></tr> <tr style="height:12pt"> <td style="background-color:#ECF6F8;border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:132.84pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:5.75pt;text-align:Left;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Institutional Class</div></div></div></td> <td style="background-color:#ECF6F8;border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:29.55pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:5.75pt;margin-right:5.75pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">$47</div></div></div></td> <td style="background-color:#ECF6F8;border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:32.32pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:5.75pt;margin-right:5.75pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">$154</div></div></div></td> <td style="background-color:#ECF6F8;border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:32.32pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:5.75pt;margin-right:5.75pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">$261</div></div></div></td> <td style="background-color:#ECF6F8;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:32.96pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:5.75pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">$524</div></div></div></td></tr> <tr style="height:12pt"> <td style="border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:132.84pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:5.75pt;text-align:Left;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Class A-3</div></div></div></td> <td style="border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:29.55pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:5.75pt;margin-right:5.75pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">$54</div></div></div></td> <td style="border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:32.32pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:5.75pt;margin-right:5.75pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">$175</div></div></div></td> <td style="border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:32.32pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:5.75pt;margin-right:5.75pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">$293</div></div></div></td> <td style="padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:32.96pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:5.75pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">$576</div></div></div></td></tr> <tr style="height:12pt"> <td style="background-color:#ECF6F8;border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:132.84pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:5.75pt;text-align:Left;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Class A-4</div></div></div></td> <td style="background-color:#ECF6F8;border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:29.55pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:5.75pt;margin-right:5.75pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">$93</div></div></div></td> <td style="background-color:#ECF6F8;border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:32.32pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:5.75pt;margin-right:5.75pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">$200</div></div></div></td> <td style="background-color:#ECF6F8;border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:32.32pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:5.75pt;margin-right:5.75pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">$314</div></div></div></td> <td style="background-color:#ECF6F8;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:32.96pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:5.75pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">$589</div></div></div></td></tr> <tr style="height:9pt"> <td style="border-right:0.5pt solid #FFFFFF;padding-bottom:2.5pt;padding-top:3.5pt;vertical-align:Top;width:132.84pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:5.75pt;text-align:Left;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Class F</div></div></div></td> <td style="border-right:0.5pt solid #FFFFFF;padding-bottom:2.5pt;padding-top:3.5pt;vertical-align:Top;width:29.55pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:5.75pt;margin-right:5.75pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">$64</div></div></div></td> <td style="border-right:0.5pt solid #FFFFFF;padding-bottom:2.5pt;padding-top:3.5pt;vertical-align:Top;width:32.32pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:5.75pt;margin-right:5.75pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">$154</div></div></div></td> <td style="border-right:0.5pt solid #FFFFFF;padding-bottom:2.5pt;padding-top:3.5pt;vertical-align:Top;width:32.32pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:5.75pt;margin-right:5.75pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">$261</div></div></div></td> <td style="padding-bottom:2.5pt;padding-top:3.5pt;vertical-align:Top;width:32.96pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:5.75pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">$524</div></div></div></td></tr></table></div><div style="line-height:17.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">If you do not redeem your shares:</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 1pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:0.0pt;margin-top:6.0pt;text-align:left"><div style="margin-top:6pt"> </div></div><div style="margin-top:0.0pt"> <table cellpadding="0" cellspacing="0" style="text-align:start; border-bottom:0.5pt solid #00687D;empty-cells:show;width:260pt"> <tr style="height:8.5pt"> <td style="border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Bottom;width:132.84pt"><div style="line-height:0.5pt;text-align:left"><div style="margin-left: 3pt; margin-right: 5.75pt; text-align: center; white-space: nowrap; font-size: 7pt;"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;"> </div></div></div></div></td> <td style="border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Bottom;width:29.55pt"><div style="line-height:7pt;text-align:left"><div style="margin-left:5.75pt;margin-right:5.75pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">1 Year</div></div></div></div></td> <td style="border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Bottom;width:32.32pt"><div style="line-height:7pt;text-align:left"><div style="margin-left:5.75pt;margin-right:5.75pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">3 Years</div></div></div></div></td> <td style="border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Bottom;width:32.32pt"><div style="line-height:7pt;text-align:left"><div style="margin-left:5.75pt;margin-right:5.75pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">5 Years</div></div></div></div></td> <td style="padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Bottom;width:32.96pt"><div style="line-height:7pt;text-align:left"><div style="margin-left:5.75pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">10 Years</div></div></div></div></td></tr> <tr style="height:12pt"> <td style="background-color:#ECF6F8;border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:132.84pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:5.75pt;text-align:Left;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Class A-4</div></div></div></td> <td style="background-color:#ECF6F8;border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:29.55pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:5.75pt;margin-right:5.75pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">$83</div></div></div></td> <td style="background-color:#ECF6F8;border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:32.32pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:5.75pt;margin-right:5.75pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">$200</div></div></div></td> <td style="background-color:#ECF6F8;border-right:0.5pt solid #FFFFFF;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:32.32pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:5.75pt;margin-right:5.75pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">$314</div></div></div></td> <td style="background-color:#ECF6F8;padding-bottom:3.5pt;padding-top:3.5pt;vertical-align:Top;width:32.96pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:5.75pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">$589</div></div></div></td></tr> <tr style="height:9pt"> <td style="border-right:0.5pt solid #FFFFFF;padding-bottom:2.5pt;padding-top:3.5pt;vertical-align:Top;width:132.84pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:5.75pt;text-align:Left;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Class F</div></div></div></td> <td style="border-right:0.5pt solid #FFFFFF;padding-bottom:2.5pt;padding-top:3.5pt;vertical-align:Top;width:29.55pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:5.75pt;margin-right:5.75pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">$47</div></div></div></td> <td style="border-right:0.5pt solid #FFFFFF;padding-bottom:2.5pt;padding-top:3.5pt;vertical-align:Top;width:32.32pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:5.75pt;margin-right:5.75pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">$154</div></div></div></td> <td style="border-right:0.5pt solid #FFFFFF;padding-bottom:2.5pt;padding-top:3.5pt;vertical-align:Top;width:32.32pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:5.75pt;margin-right:5.75pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">$261</div></div></div></td> <td style="padding-bottom:2.5pt;padding-top:3.5pt;vertical-align:Top;width:32.96pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:5.75pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">$524</div></div></div></td></tr></table></div><div><div style="clear:both;margin-top:2.0pt;position:relative;width:100%"><div style="float:left;line-height:7pt;text-align:left;width:2.88pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 5pt; position: relative; top: 0px; letter-spacing: 0px;display:inline;">1</div></div><div style="float:left;line-height:10.0pt;margin-left:7.12pt;text-align:left;width:245.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">The example above should not be considered a representation of future </div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">expenses. Actual expenses may be higher or lower than those shown</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">. The </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">example assumes that the estimated Interest Payments on Borrowed Funds and Other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">Expenses set forth in the Annual Fund Operating Expenses table are accurate, that the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">Total Annual Fund Operating Expenses (as described above) remain the same for all </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">time periods shown and that all dividends and distributions are reinvested at NAV. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">Actual expenses may be greater or less than those assumed. Moreover, the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">actual rate of return may be greater or less than the hypothetical 5% annual return </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">shown in the example. In addition to the fees and expenses described above, you may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">also be required to pay transaction or other fees on purchases of Common Shares of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund, <div style="display:inline;">which </div>are not reflected in the example.</div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div> 47 154 261 524 54 175 293 576 93 200 314 589 64 154 261 524 83 200 314 589 47 154 261 524 <div style="line-height:14.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Investment Objectives and Strategies</div></div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Investment Objectives</div></div></div></div><div style="line-height:12.0pt;margin-top:2pt;text-align:left"><div style="margin-top:2pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund’s primary investment objective is to provide current income </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">with a secondary objective of long- term capital appreciation. There can </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">be no assurance that the Fund will achieve its investment objectives.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund’s investment objectives are not fundamental and may be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">changed by the Board without the approval of the holders of a majority </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of the outstanding Common Shares or Preferred Shares. The Fund is not </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">required to provide prior notice to shareholders of any change to its </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment objectives.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Principal Investment Strategies</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund’s investment strategy will be, under normal circumstances, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">primarily to acquire stabilized, income-oriented commercial real estate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and debt secured by CRE. Under normal circumstances, the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">portfolio is expected to be principally comprised of properties, and debt </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">secured by properties, primarily located in the United States but may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">also be diversified on a global basis through investments in properties </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and debt secured by properties outside of the United States. To a lesser </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">extent, and subject to the investment limitations described herein, the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund also may invest in real estate-related securities.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund invests, under normal circumstances, at least 80% of its net </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">assets (plus the amount of its borrowings for investment purposes) in a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">portfolio of real estate, including in the form of property investments </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and debt interests, equity investments in real estate or real estate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">related companies, real estate related loans or other real estate debt </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments and securities of real estate and real estate-related issuers </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or real estate related companies. The Fund may also invest in private </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">real estate investment funds. The Fund’s investments in private real </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">estate funds will be in private real estate funds that invest primarily in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">real estate debt and real estate equity investments of the types in which </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund may invest directly. Investments included in the Fund’s 80% </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">policy will be in an issuer that either invests 50% or more of its assets in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">real estate or derives at least 50% of its revenue from real estate, or is </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">classified as a real estate company or an issuer engaged in the real </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">estate industry according to an independent classification system, such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">as Standard Industrial Classification Codes or Global Industry </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Classification Standard, which are each methods for assigning a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">company to a specific economic sector and industry group that best </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">defines its business operations. For purposes of the Fund’s 80% policy, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund values its derivative instruments based on their market value. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund will not invest more than 15% of its assets in private funds </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">that rely on Section 3(c)(1) or 3(c)(7) of the Investment Company Act.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">As a fundamental policy, the Fund will normally invest at least 25% of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">its total assets (</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">i.e.,</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> concentrate) in real estate investments and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgage-related assets issued by government agencies or other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">governmental entities or by private originators or issuers, which for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">purposes of this investment restriction the Fund treats collectively as an </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">industry or group of industries (for purposes of this restriction, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment companies are not considered to be part of any industry).</div></div></div><div><div style="clear:both;margin-top:6pt;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Location</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">. The Fund intends to invest principally in major markets </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in the United States with the ability to selectively invest in other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">regions that PIMCO believes offer attractive risk-adjusted returns </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">consistent with the objectives of the Fund.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Property Types</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">. The Fund may invest across various CRE </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">property types including, but not limited to residential, industrial, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and office, retail, hospitality, and select niche sectors. The </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">following is not an exhaustive list of asset classes or strategies </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">that the Fund may target, and the Fund may not target all (or any </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">one) of the following asset classes or strategies at any given time:</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:20pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:223.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Residential</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">. Residential properties are generally defined as </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">having five or more dwelling units that are part of a single </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">complex and offered for rental use, and also include </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">single-family residential properties offered for rental use. This </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may include apartment, student housing or senior living.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:20pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:223.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Industrial</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">. Industrial properties are generally categorized as </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">warehouse/distribution centers, research and development </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">facilities, flex space or manufacturing.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:20pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:223.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Office</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">. Office properties include conventional and other office </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">properties.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:20pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:223.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Retail</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">. Retail properties consist of shopping and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">entertainment properties, such as shopping malls, retail stores, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">shopping centers, etc.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:20pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:223.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Hospitality</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">. Hospitality properties are generally defined as </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">hotels and lodging properties and can be further divided in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">various sub-categories including (but not limited to) limited </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">service, full service, etc.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:20pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:223.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Select Niche Sectors</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">. Select niche sectors include </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sub-segments of the real estate industry with purpose-built </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">properties, such as data centers, life sciences, medical office, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">self-storage, etc.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The following sections further describe certain asset classes and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">strategies that the Fund may target. The following is not an exhaustive </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">list of asset classes or strategies that the Fund may target, and the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">is not obligated to target all (or any one) of the following asset classes </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or strategies.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Private CRE Equity Investments</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">: The Fund intends, under </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">normal circumstances, to invest in stabilized income-oriented </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">private CRE located in the United States. Stabilized </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">income-oriented real estate generally means that a property is </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">well leased to tenants (that is, the property has favorable </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">occupancy rates) and does not require material capital </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">improvements. However, the Fund may make investments in CRE </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">with other characteristics (such as properties that are not well </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">leased and generally require significant capital improvements, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">restructuring and/or repositioning) or other geographies at </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">PIMCO’s discretion. The Fund may invest in various CRE property </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">types, including residential, industrial, office, retail, hospitality, and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">certain niche sectors. The Fund’s exposure to any of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">aforementioned property types may change based on PIMCO’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">outlook. While PIMCO generally expects to arrange for third-party </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">property managers or joint venture partners to manage such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments, the Fund, PIMCO and/or their respective affiliates (as </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">well as entities owned by or affiliated with any of the foregoing) </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may also provide such services.</div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Private CRE Debt Investments</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">: The Fund’s investments may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">include mortgage loans, mezzanine, preferred equity transitional </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">private debt secured by CRE properties and b-notes (the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">secondary tranche in a commercial mortgage-backed security). </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Such investments may be of any credit quality (including below </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment grade (commonly referred to as “high yield” securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or “junk bonds”)), may have any combination of principal and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest payment structures, may be newly-originated or existing, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may have been originated to specific or general underwriting </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">standards which vary according to the seller and may be of any </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">size and any lien position (e.g., first-lien, second-lien or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">unsecured). In addition, the Fund may provide financing in respect </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of real estate or real estate-related assets or interests (including </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to finance construction, development or improvement projects, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgage loan pay downs and/or mortgage loans), in each case </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">directly or through companies acquired (or created) and owned by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or otherwise affiliated with the Fund or PIMCO.</div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Generally, the day-to-day administration of these investments will be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">handled by one or more servicers selected by PIMCO.</div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Publicly Traded CRE Securities</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">: The Fund’s investments in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">publicly traded real estate securities may include CMBS, RMBS, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and other equity or debt securities issued by REITs or real </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">estate-related investment companies. Publicly traded securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may be exchange-traded or traded OTC. Real estate-related </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment companies are investment companies that primarily </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">invest in real estate or activities relating to the ownership, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">construction, financing, management, servicing or sale of such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">real estate. The Fund may invest in securities of any credit quality, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">maturity and duration to enhance its income and capital </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">appreciation potential and to provide liquidity to the overall </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">portfolio. This may include below investment grade (commonly </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">referred to as “high yield” securities or “junk”) securities. The </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund expects that its investments in publicly traded real estate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities will primarily be in U.S. securities, but it may also invest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in non-U.S. securities. To the extent that an underlying investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">company in which the Fund invests has adopted a policy to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">concentrate its investments in a particular industry, the Fund will, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to the extent applicable, take such underlying investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">company’s concentration policy into consideration for purposes of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund’s own industry concentration policy.</div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Collateralized Bond Obligations, Collateralized Loan </div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Obligations and other Collateralized Debt Obligations</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">: </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund may invest in each of CBOs, CLOs, other CDOs and other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">similarly structured securities. CBOs, CLOs and CDOs are types of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">asset-backed securities. A CBO is a trust which is often backed by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">a diversified pool of high risk, below investment grade fixed </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">income securities. The collateral can be from many different types </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of fixed income securities such as high-yield debt, residential </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">privately-issued mortgage-related securities, commercial </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">privately-issued mortgage-related securities, trust preferred </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities and emerging market debt. A CLO is a trust typically </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">collateralized by a pool of loans, which may include, among </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">others, domestic and foreign senior secured loans, senior </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">unsecured loans and subordinate commercial real estate loans, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">including loans that may be rated below investment grade or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">equivalent unrated loans. Other CDOs are trusts backed by other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">types of assets representing obligations of various parties. CBOs, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">CLOs and other CDOs may charge management fees and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">administrative expenses. For CBOs, CLOs and CDOs, the cash </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">flows from the trust are split into two or more portions, called </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">tranches, varying in risk and yield. The riskiest portion is the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">“equity” tranche which bears the bulk of defaults from the bonds </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or loans in the trust and serves to protect the other, more senior </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">tranches from default in all but the most severe circumstances. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Since they are partially protected from defaults, senior tranches </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">from a CBO trust, CLO trust or trust of another CDO typically have </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">higher ratings and lower yields than their underlying securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and can be rated investment grade. Despite the protection from </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the equity tranche, CBO, CLO or other CDO tranches can </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">experience substantial losses due to actual defaults, increased </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div style="line-height:12.0pt;margin-left:22pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sensitivity to defaults due to collateral default and disappearance </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of protecting tranches, market anticipation of defaults, as well as </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">aversion to CBO, CLO or other CDO securities as a class. The Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may invest in any tranche, including the equity tranche, of a CBO, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">CLO or other CDO. The risks of an investment in a CBO, CLO or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other CDO depend largely on the type of the collateral securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and the class of the instrument in which the Fund invests. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Normally, CBOs, CLOs and other CDOs are privately offered and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sold, and thus, are not registered under the securities laws. As a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">result, investments in CBOs, CLOs and other CDOs may be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">characterized by the Fund as illiquid investments, however an </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">active dealer market may exist for CBOs, CLOs and other CDOs </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">allowing them to qualify for Rule 144A under the 1933 Act. In </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">addition to the normal risks associated with debt instruments </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">discussed elsewhere in this prospectus and in the SAI (e.g., </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">prepayment risk, credit risk, liquidity risk, market risk, structural </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">risk, legal risk and interest rate risk (which may be exacerbated if </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the interest rate payable on a structured financing changes based </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">on multiples of changes in interest rates or inversely to changes in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest rates) and default risk), CBOs, CLOs and other CDOs may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">carry additional risks including, but are not limited to: (i) the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">possibility that distributions from collateral securities will not be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">adequate to make interest or other payments; (ii) the possibility </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">that the quality of the collateral may decline in value or default; </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(iii) the possibility that investments in CBOs, CLOs and other CDOs </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">are subordinate to other classes or tranches thereof; and (iv) the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">complex structure of the security may not be fully understood at </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the time of investment and may produce disputes with the issuer </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or unexpected investment results.</div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Derivative Instruments</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">: The Fund may, but is not required to, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">utilize various derivative strategies (both long and short positions) </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">involving the purchase or sale of futures and forward contracts </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(including foreign currency exchange contracts), call and put </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">options, credit default swaps, total return swaps, basis swaps and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other swap agreements and other derivative instruments for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment purposes, leveraging purposes or in an attempt to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">hedge against market, credit, interest rate, currency and other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">risks in the portfolio.</div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund may invest in cash equivalents and treasuries. The Fund may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">invest in securities of other investment companies (including those </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">advised by PIMCO), including closed-end funds, exchange-traded funds </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and other open-end funds. The Fund may invest in certain money market </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">funds and/or short-term bond funds (“Central Funds”), to the extent </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">permitted by the 1940 Act, the rules thereunder or exemptive relief </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">therefrom. The Central Funds are registered investment companies </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">created for use by certain registered investment companies advised by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">PIMCO in connection with their cash management activities.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">There is no limit on the maturity or duration of any individual security in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which the Fund may invest.</div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund may invest in assets involving leases whereby the tenant is </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">obligated to pay all the expenses of the property, including real estate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">taxes, building insurance, and maintenance (“triple net leased”). These </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">leases can be signed across property sectors, including office and select </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">retail, to which the Fund plans to gain exposure.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund has received exemptive relief from the SEC that, to the extent </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund relies on such relief, permits it to (among other things) </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">co-invest with certain other persons, including certain affiliates of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Investment Manager and certain public or private funds managed by the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Investment Manager and its affiliates, subject to certain terms and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">conditions. The exemptive relief from the SEC with respect to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">co-investments imposes extensive conditions on any co-investments </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">made in reliance on such relief.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">For purposes of the Fund’s investment policies, a Controlled Subsidiary </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">will comply with provisions of the 1940 Act related to affiliated </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">transactions and custody (Section 17) or exemptive relief therefrom, and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund will comply with provisions governing investment policies </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(Section 8) and capital structure and leverage (Section 18) on an </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">aggregate basis with the Controlled Subsidiary. In addition, PIMCO and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Board will comply with the provisions of Section 15 of the 1940 Act </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">with respect to a Controlled Subsidiary’s investment advisory contract. A </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">“Controlled Subsidiary” is a subsidiary (which includes an operating </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">entity, operating company or special purpose entity used by the Fund) </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">that primarily engages in investment activities in securities or other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">assets and in which the Fund owns all or a majority of the voting </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities, i.e., has sole majority voting control. The Fund does not </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">currently intend to create or acquire primary control of any entity which </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">primarily engages in investment activities in securities or other assets </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other than Controlled Subsidiaries.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Investment Selection Strategies</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">In selecting investments for a Fund, PIMCO develops an outlook for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest rates, economic conditions, and commercial real estate market. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The proportion of a Fund’s assets committed to a specific investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">varies based on PIMCO’s outlook for the U.S. economy and the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">economies of other countries in the world, the financial markets, and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other factors. In selecting investments for the Fund, PIMCO may use </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">proprietary quantitative models that are developed and maintained by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">PIMCO, and which are subject to change over time without notice in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">PIMCO's discretion.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Portfolio Composition</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund’s portfolio is expected to be comprised principally of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">following types of investments. A more detailed description of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s investment policies and restrictions and more detailed </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">information about the Fund’s portfolio investments are contained in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">SAI.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">Investments in Thematically-Driven Stabilized Real Estate and Single </div></div><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">Tenant Properties</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund intends to make equity investments in stabilized, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">income-oriented commercial real estate primarily in U.S. markets that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">offer the potential to generate current income and, to a lesser extent, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">long-term capital appreciation. Stabilized income-oriented real estate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">generally means that a property is well leased to tenants (that is, the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">property has favorable occupancy rates) and does not require material </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">capital improvements. The Fund also intends to make equity investments </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in commercial real estate leased for long durations (typically at least a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">10-year period) to single tenants that the Investment Manager believes </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">have favorable credit profiles and/or performance attributes supporting </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">highly visible long-term cash flows.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; text-decoration: underline; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">Property Characteristics</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">. The Fund may invest in stabilized assets and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">portfolios with, in PIMCO’s view at the time of investment, income from </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">stable, in-place cash flows that require limited near-term capital </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">expenditures.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; text-decoration: underline; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">Location</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">. The Fund intends to invest principally in major markets in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">United States with the ability to selectively invest in other regions that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">PIMCO believes offer attractive risk-adjusted returns consistent with the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">objectives of the Fund.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund expects that its investments in real estate-related securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">will primarily be in U.S. securities, but it may also invest in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">non-U.S. securities.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; text-decoration: underline; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">Property Types</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">. The Fund may invest across various CRE property types </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">including, but not limited to, residential, industrial, office, retail, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">hospitality, and select niche sectors. The Fund’s exposure to any of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">below property types may change based on PIMCO’s outlook. The </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">following is not an exhaustive list of asset classes or strategies that the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund may target, and the Fund may not target all (or any one) of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">following asset classes or strategies at any given time:</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; text-decoration: underline; letter-spacing: 0px; top: 0px;display:inline;">Residential Properties</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">. Residential properties are generally defined as </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">having five or more dwelling units that are part of a single complex and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">offered for rental use, and also include single-family residential </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">properties offered for rental use. This may include apartment, student </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">housing or senior living.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; text-decoration: underline; letter-spacing: 0px; top: 0px;display:inline;">Industrial Properties</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">. Industrial properties are generally categorized as </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">warehouse/distribution centers, research and development facilities, flex </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">space or manufacturing.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; text-decoration: underline; letter-spacing: 0px; top: 0px;display:inline;">Office Properties</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">. Office properties include conventional and other office </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">properties.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; text-decoration: underline; letter-spacing: 0px; top: 0px;display:inline;">Retail.</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> Retail properties consist of shopping and entertainment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">properties, such as shopping malls, retail stores, shopping centers, etc.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; text-decoration: underline; letter-spacing: 0px; top: 0px;display:inline;">Hospitality</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">. Hospitality properties are generally defined as hotels and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">lodging properties and can be further divided in various sub-categories </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">including (but not limited to) limited service, full service, etc.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; text-decoration: underline; letter-spacing: 0px; top: 0px;display:inline;">Select Niche Sectors</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">. Select niche sectors include sub-segments of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">real estate industry with purpose-built properties, such as data centers, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">life sciences, medical office, self-storage, etc.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; text-decoration: underline; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">Ownership Structure</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">. The Fund’s property investments in each primary </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">strategy are expected to be structured through privately-owned </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">operating entities or private real estate operating companies which hold </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">whole or partial interests in real properties. The Fund, directly or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">indirectly through its Controlled Subsidiaries expects to enter into joint </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">ventures with third parties to make investments. The Fund or its </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Controlled Subsidiaries may also make investments in partnerships or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other co-ownership arrangements or participations arrangements with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other investors, including affiliates, to acquire properties. The Fund, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">directly or indirectly through its Controlled Subsidiaries, expects to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">generally acquire fee simple interests for the properties (in which the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund has an interest in both the land and the building improvements), </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">but may consider leased fee and leasehold interests if the Investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Manager believes the investment is consistent with the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment objectives and strategies.</div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">Investments in Private Real Estate Debt and Preferred Equity</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">In addition to equity investments in the property types listed above, the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund may also invest in privately sourced debt and preferred equity </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interests that offer current income secured or backed by real estate. The </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund intends to originate and selectively acquire mezzanine loans, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">preferred equity, and to a lesser extent, senior mortgage loans.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The loans may vary in duration, bear interest at fixed or floating rates </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and amortize, if at all, over varying periods, often with a balloon </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">payment of principal at maturity and in the case of mezzanine and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">preferred equity may allow for interest to accrue and be added to the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">principal amount rather than paid on a current basis and may include </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">equity participation rights. The borrower of the Fund’s loan investments </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">will generally be responsible for servicing obligations. In cases where </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund as lender is responsible for servicing a loan, such obligations </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">will generally consist of collecting, or arranging for the collection of, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest payments and, when applicable, enforcing the Fund’s rights </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">under the loan documentation. There are no limits on the amount of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">loans the Fund may originate; provided such transactions do not impact </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund’s ability to maintain its status as a REIT.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; text-decoration: underline; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">Mezzanine Loans</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">. Mezzanine loans are a type of subordinate loan in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which the loan is secured by one or more direct or indirect ownership </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interests in an entity that directly or indirectly owns real estate. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Mezzanine loans are subordinate to a first mortgage or other senior </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">debt. Investors in mezzanine loans are generally compensated for the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">increased credit risk from a pricing perspective and still benefit from the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">right to foreclose on its security, in many instances more efficiently than </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the rights of foreclosure for first mortgage loans. Upon a default by the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">borrower under a mezzanine loan, the mezzanine lender generally can </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">take control of the property owning entity on an expedited basis, subject </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to the rights of the holders of debt senior in priority on the property. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Rights of holders of mezzanine loans are usually governed by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">intercreditor or interlender agreements, which may limit the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">ability to pursue remedies.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; text-decoration: underline; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">Preferred Equity</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">. Preferred equity is a type of interest in an entity that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">owns real estate or real estate-related investments. Preferred equity </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interests are generally senior with respect to the payments of dividends </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and other distributions, redemption rights and rights upon liquidation to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such entity’s common equity. Investors in preferred equity are typically </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">compensated for their increased credit risk from a pricing perspective </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">with fixed payments but may also participate in capital appreciation. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Upon a default by a general partner of a preferred equity issuer, there </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">typically is a change of control event and the limited partner assumes </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">control of the entity. Rights of holders of preferred equity are usually </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">governed by partnership agreements.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; text-decoration: underline; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">Senior Mortgage Loans</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">. Senior mortgage loans are generally loans </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">secured by a first mortgage lien on a commercial property. Senior </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgage loans generally provide for a higher recovery rate and lower </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">defaults than other debt positions due to the lender’s favorable control </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">features which at times may mean control of the entire capital structure.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; text-decoration: underline; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">Subordinate Mortgage Loans</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">. Subordinate mortgage loans are loans </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">that have a lower priority to collateral claims. Investors in subordinate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgages are generally compensated for the increased risk from a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">pricing perspective as compared to first mortgage loans but still benefit </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">from a direct lien on the related property or a security interest in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">entity that owns the real estate. Investors typically receive principal and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest payments at the same time as senior debt unless a default </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">occurs, in which case these payments are made only after any senior </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">debt is repaid in full. The rights of holders of subordinate mortgages are </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">usually governed by participation and other agreements.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">Investments in Traded Real Estate-Related Securities</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund may invest in traded real estate-related securities, which </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">includes MBS and other equity or debt securities issued by REITs or real </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">estate-related investment companies.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund expects that its investments in real estate-related securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">will primarily be in U.S. securities, but it may also invest in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">non-U.S. securities.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund may invest in the following traded real estate-related </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities:</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; text-decoration: underline; letter-spacing: 0px; top: 0px;display:inline;">CMBS</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">. CMBS are securities backed by obligations (including certificates </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of participation in obligations) that are principally secured by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">commercial mortgages on real property or interests therein having a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">multifamily or commercial use, such as retail, office or industrial </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">properties, hotels, apartments, nursing homes and senior living facilities. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">CMBS are typically issued in multiple tranches whereby the more senior </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">classes are entitled to priority distributions from the trust’s income to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">make specified interest and principal payments on such tranches. Losses </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and other shortfalls from expected amounts to be received on the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgage pool are borne by the most subordinate classes, which receive </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">principal payments only after the more senior classes have received all </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">principal payments to which they are entitled. The credit quality of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">CMBS depends on the credit quality of the underlying mortgage loans, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which is a function of factors such as the principal amount of loans </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">relative to the value of the related properties; the cash flow produced by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the property; the mortgage loan terms, such as principal amortization; </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">market assessment and geographic location; construction quality of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">property; and the creditworthiness of the borrowers.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; text-decoration: underline; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">Agency RMBS</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">. Agency RMBS are residential mortgage-backed securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">for which a U.S. government agency such as Government National </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Mortgage Association (“Ginnie Mae”), or a federally chartered </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">corporation such as Federal National Mortgage Association (“Fannie </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Mae”) or Federal Home Loan Mortgage Corporation (“Freddie Mac”) </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">guarantees payments of principal and interest on the securities. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Although the U.S. government guarantees principal and interest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">payments on securities issued by the U.S. government and some of its </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">agencies, such as securities issued by Ginnie Mae, this guarantee does </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">not apply to losses resulting from declines in the market value of these </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities. Some agency RMBS that the Fund may hold are not </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">guaranteed or backed by the full faith and credit of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">U.S. government, such as those issued by Fannie Mae and Freddie Mac. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Although the U.S. government in the past has provided financial support </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to Fannie Mae and Freddie Mac, there can be no assurance that it will </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">support these or other government-sponsored enterprises in the future.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Agency RMBS differ from other forms of traditional debt securities, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which normally provide for periodic payments of interest in fixed </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">amounts with principal payments at maturity or on specified call dates. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Instead, agency RMBS provide for monthly payments, which consist of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">both principal and interest. In effect, these payments are a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">“pass-through” of scheduled and prepaid principal payments and the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">monthly interest made by the individual borrowers on the mortgage </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">loans, net of any fees paid to the issuers, servicers or guarantors of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities. The principal may be prepaid at any time due to prepayments </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">on the underlying mortgage loans or other assets. These differences can </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">result in significantly greater price and yield volatility than is the case </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">with traditional fixed income securities.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund’s allocation of agency RMBS collateralized by fixed-rate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgages (“FRMs”), adjustable rate mortgages (“ARMs”), or hybrid </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">adjustable-rate mortgages (“hybrid ARMs”) will depend on various </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">factors including, but not limited to, relative value, expected future </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">prepayment trends, supply and demand, costs of hedging, costs of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">financing, expected future interest rate volatility and the overall shape </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of the Treasury and interest rate swap yield curves. The Investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Manager intends to take these factors into account when making </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments on behalf of the Fund. The Fund may also make </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments in debentures that are issued and guaranteed by Freddie </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Mac or Fannie Mae or mortgage-backed securities the collateral of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which is guaranteed by Ginnie Mae, Freddie Mac, Fannie Mae or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">another federally chartered corporation.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; text-decoration: underline; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">Non-Agency RMBS</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">. Non-agency RMBS are RMBS that are collateralized </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">by pools of mortgage loans assembled for sale to investors by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">commercial banks, savings and loan associations and specialty finance </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">companies. Non-agency RMBS are not issued or guaranteed by a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">U.S. government agency or federally chartered corporation. Like agency </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">RMBS, non-agency RMBS represent interests in pools of mortgage loans </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">secured by residential real property.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The mortgage loan collateral for non-agency RMBS consists of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">residential mortgage loans that do not generally conform to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">underwriting guidelines issued by a federally chartered corporation, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such as Fannie Mae or Freddie Mac, or an agency of the </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">U.S. government, such as Ginnie Mae, due to certain factors, including </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgage balances in excess of agency underwriting guidelines, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">borrower characteristics, loan characteristics and level of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">documentation, and therefore are not issued or guaranteed by an </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">agency. The Fund may also invest in credit risk transfer notes that, while </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">not structured products, face similar risks as structured products </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">because they are debt securities issued by governmental agencies but </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">their value depends in part on a pool of mortgage loans.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The non-agency and agency RMBS acquired by the Fund could be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">secured by FRMs, ARMs, hybrid ARMs or interest only mortgages. FRMs </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">have interest rates that are fixed for the term of the loan and do not </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">adjust. The interest rates on ARMs generally adjust annually (although </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">some may adjust more frequently) to an increment over a specified </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest rate index. Hybrid ARMs have interest rates that are fixed for a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">specified period of time (typically three, five, seven or ten years) and, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">thereafter, adjust to an increment over a specified interest rate index. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">ARMs and hybrid ARMs generally have periodic and lifetime constraints </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">on how much the loan interest rate can change on any predetermined </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest rate reset date. Interest only securities are backed by mortgages </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">where the borrower pays interest only. Relative value analysis, including </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">consideration of current market conditions, will determine the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">allocation to FRMs, ARMs, hybrid ARMs and interest only mortgages.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund’s allocation of non-agency RMBS collateralized by FRMs, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">ARMs, hybrid ARMs or interest only mortgages will depend on various </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">factors including, but not limited to, relative value, expected future </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">prepayment trends, home price appreciation trends, supply and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">demand, availability of financing, expected future interest rate volatility </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and the overall state of the non-agency RMBS secondary market. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Borrowers of the underlying loans that secure the non-agency RMBS </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">assets which the Fund may purchase can be divided into prime, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Alternative-A (“Alt-A”) and subprime borrowers based on their credit </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rating.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; text-decoration: underline; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">Real Estate Mortgage Investment Conduits (“REMICs”)</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">. REMICs are </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">special purpose vehicles used to pool mortgage loans and issue </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgage-backed securities. They are designed to hold a fixed pool of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgages and issue multiple classes of interests, known as tranches, to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investors. REMICs are treated as pass-through entities for tax purposes, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">meaning that income is passed directly to investors, thereby avoiding </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">double taxation. The primary purpose of REMICs is to securitize </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgage loans, providing liquidity and diversification to investors.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; text-decoration: underline; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">Re-securitized Real Estate Mortgage Investment Conduits </div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; text-decoration: underline; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">(“Re-REMICs”)</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">. REMICs involve the re-securitization of existing REMIC </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">tranches into new securities. This process takes tranches from one or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">more REMICs and re-pools them to create new tranches with different </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">risk and return profiles. The purpose of Re-REMICs is to restructure </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">existing mortgage-backed securities to better meet investor needs, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">manage risk and enhance liquidity. Both REMICs and Re-REMICs play </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">significant roles in the mortgage-backed securities market, offering </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mechanisms for the securitization and re-securitization of mortgage </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">loans.</div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; text-decoration: underline; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">Other Fixed Income Instruments</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">. The Fund may invest in fixed income </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instruments, such as investment grade and high-yield corporate debt </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities, or junk bonds, or U.S. government debt securities. The issuer </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of a fixed income instrument pays the investor a fixed- or variable-rate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of interest and normally must repay the amount borrowed on or before </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">maturity. Certain bonds are “perpetual” in that they have no maturity </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">date. Holders of fixed income bonds as creditors have a prior legal claim </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">over common and preferred shareholders as to both income and assets </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of the issuer for the principal and interest due them and may have a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">prior claim over other creditors but are generally subordinate to any </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">existing lenders in the issuer’s capital structure. Fixed income </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instruments may be secured or unsecured. The investment return of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">corporate bonds is generated by payments of interest on the security </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and changes in the market value of the security. The market value of a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">corporate bond, especially a fixed-rate bond, will generally rise and fall </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">inversely with interest rates. The value of intermediate- and longer-term </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">corporate bonds normally fluctuates more in response to changes in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest rates than does the value of shorter-term corporate bonds. The </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">market value of a corporate bond also may be affected by the credit </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rating of the corporation, the corporation’s performance and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">perceptions of the corporation in the marketplace. There is a risk that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the issuers of the securities may not be able to meet their obligations on </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest or principal payments at the time called for by an instrument. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Corporate fixed income instruments usually yield more than government </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or agency bonds due to the presence of credit risk. The types of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgage-backed securities in which the Fund may invest include </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest-only, inverse-interest only, or principal only residential MBS, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">commercial MBS, collateralized mortgage obligations (“CMOs”), </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities issued by REMICs, Re-REMICs, pass-through certificates, credit </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">linked notes, mortgage forwards or “to be announced” transactions, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">collateralized loan obligations backed by commercial loans and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgage servicing rights securities. The Fund may invest in a Re-REMIC </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in order to obtain exposure to mortgages with a specific risk profile that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">could not otherwise be obtained through the purchase of existing </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">REMICs. Pass-through certificates are fixed income securities whereby </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">certificates are issued representing interests in a pool of mortgages or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgage-backed securities. The Fund may invest in various tranches or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">classes of MBS.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; text-decoration: underline; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">Publicly Traded REITs</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">. The Fund may invest in publicly traded REITs. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">REITs are investment vehicles that invest primarily in income-producing </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">real estate or mortgages and other real estate-related loans or interests.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Many public REITs are listed on major stock exchanges, such as the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">New York Stock Exchange and NASDAQ. Publicly traded REITs typically </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">employ leverage, which magnifies the potential for gains and the risk of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">loss. They typically pay out all of their taxable income as dividends to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">shareholders. In turn, shareholders pay the income taxes on those </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">dividends.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; text-decoration: underline; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">Ratings of Securities</div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">. The Fund may invest in debt securities that are </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rated investment grade, debt securities rated below investment grade, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and unrated debt securities. The Fund is not required to hold any </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">minimum percentage of its NAV in debt securities rated investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">grade.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">Derivatives</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund may, but is not required to, utilize various derivative strategies </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(both long and short positions) for investment purposes, leveraging </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">purposes, or in an attempt to hedge against market, credit, interest rate, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">currency and other risks in the portfolio. See “Use of Leverage.” </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Generally, derivatives and other similar instruments (referred to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">collectively as “derivatives”) are financial contracts whose value </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">depends upon, or is derived from, the value of an underlying asset, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">reference rate or index, and may relate to, among others, individual debt </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instruments, interest rates, currencies or currency exchange rates, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">commodities and related indexes. Examples of derivative instruments </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">that the Fund may use include, without limitation, futures and forward </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">contracts (including foreign currency exchange contracts), call and put </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">options (including options on futures contracts), credit default swaps, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">total return swaps, basis swaps and other swap agreements. The Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">use of derivative instruments involves risks different from, or possibly </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">greater than, the risks associated with investment directly in securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and other more traditional investments. Please see “Investment Policies </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and Techniques-Derivatives” in the SAI for additional information about </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">these and other derivative instruments that the Fund may use and the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">risks associated with such instruments. There is no assurance that these </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">derivative strategies will be available at any time or that PIMCO will </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">determine to use them for the Fund or, if used, that the strategies will be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">successful. In addition, the Fund may be subject to certain restrictions on </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">its use of derivative strategies imposed by guidelines of one or more </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rating agencies that may issue ratings for any Preferred Shares issued by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund will engage in derivative transactions only to the extent such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">transactions are consistent with the requirements of the Code for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">maintaining its qualification as a REIT for federal income tax purposes. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">See “Certain U.S. Federal Income Tax Considerations.”</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">Temporary Defensive Strategies</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">At times, PIMCO may judge that conditions in the markets make </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">pursuing the Fund’s primary investment strategy inconsistent with the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">best interests of its Common Shareholders. The Fund may make </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">short-term investments when attempting to respond to adverse market, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">economic, political, or other conditions, as determined by PIMCO. Upon </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">PIMCO’s recommendation, the Fund may, for temporary defensive </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">purposes, or in order to keep the Fund’s cash fully invested until the net </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">proceeds of this offering of Common Shares can be invested in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">accordance with the Fund’s primary investment strategies, the Fund may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">deviate from its investment policies and objectives. At such times the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Investment Manager may, temporarily, take temporary defensive </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">positions primarily designed to reduce fluctuations in the value of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s assets. If the Fund takes a temporary position, it may be unable </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to achieve its investment objectives. While the Fund would seek to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">continue to qualify as a REIT during such a period, there can be no </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">guarantee it will be able to do so. In implementing these temporary </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">strategies, the Fund may invest all or a portion of its assets in fixed </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">income securities; traded real estate-related securities; U.S. government </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities, including bills, notes and bonds differing as to maturity and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rates of interest that are either issued or guaranteed by the Treasury or </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">by U.S. government agencies or instrumentalities; certificates of deposit </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">issued against funds deposited in a bank or a savings and loan </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">association; commercial paper; bankers’ acceptances; bank time </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">deposits; shares of money market funds; securities issued or guaranteed </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">by the federal government or any of its agencies, or any state or local </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">government; repurchase agreements with respect to any of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">foregoing; or any other securities or cash equivalents that the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Investment Manager considers consistent with this strategy.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">It is impossible to predict when, or for how long, the Fund will take </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">temporary defensive positions. There can be no assurance that such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">strategies will be successful.</div></div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Effects of Leverage</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The following table is furnished in response to requirements of the SEC. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">It is designed to illustrate the effects of leverage through the use of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">senior securities, as that term is defined under Section 18 of the 1940 </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Act, on Common Share total return, assuming investment portfolio total </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">returns (consisting of income and changes in the value of investments </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">held in the Fund’s portfolio) of -10%, -5%, 0%, 5% and 10%. These </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">assumed investment portfolio returns are hypothetical figures and are </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">not necessarily indicative of the investment portfolio returns expected to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">be experienced by the Fund. The table below assumes the Fund’s use of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Preferred Shares representing approximately 0.28% of the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">average net assets, and, although not senior securities under the 1940 </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Act, the Fund’s use of reverse repurchase agreements representing </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">approximately 43.20% of the Fund’s average net assets during the year </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">ended December 31, 2023. The table below also assumes that the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">will pay dividends on Preferred Shares at an estimated annual rate of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">12.00% for the Preferred Shares and interest on reverse repurchase </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">agreements at an estimated annual effective interest expense rate of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">6.26% (based on market interest rates as of December 31, 2023). </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Based on such estimates, the annual return that the Fund’s portfolio </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">must experience (net of expenses) in order to cover such costs is </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">1.91%.The information below does not reflect the Fund’s use of certain </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other forms of economic leverage achieved through the use of other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instruments or transactions not considered to be senior securities under </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the 1940 Act, such as credit default swaps or other derivative </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instruments. The assumed investment portfolio returns in the table </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">below are hypothetical figures and are not necessarily indicative of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment portfolio returns expected to be experienced by the Fund. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Your actual returns may be greater or less than those appearing below. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">In addition, actual borrowing expenses associated with reverse </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">repurchase agreements (or dollar rolls/buybacks or borrowings, if any) </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">used by the Fund may vary frequently and may be significantly higher or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">lower than the rate used for the example below.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 1pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="margin-top:0.0pt"> <table cellpadding="0" cellspacing="0" style="text-align:start; border-bottom:0.5pt solid #00687D;empty-cells:show;width:260pt"> <tr style="height:21.5pt"> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:108.62pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:4pt;text-align:Left;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Assumed Portfolio Total Return (Net </div></div><div style="margin-left:3pt;margin-right:4pt;text-align:Left;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">of Expenses)</div></div></div></td> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;white-space:nowrap;width:34.19pt"><div style="line-height:7.5pt;margin-left:4pt;margin-right:4pt;text-align:right;width:26.19pt"><div style="display:flex;margin:auto;width:28.19pt"><div style="display:flex;white-space:nowrap;width:28.19pt"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">(10.0)%</div></div></div></div></td> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;white-space:nowrap;width:30.59pt"><div style="line-height:7.5pt;margin-left:4pt;margin-right:4pt;text-align:right;width:22.59pt"><div style="display:flex;margin:auto;width:24.59pt"><div style="display:flex;white-space:nowrap;width:24.59pt"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">(5.0)%</div></div></div></div></td> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;white-space:nowrap;width:30.59pt"><div style="line-height:7.5pt;margin-left:4pt;margin-right:4pt;text-align:right;width:22.59pt"><div style="display:flex;margin:auto;width:24.59pt"><div style="display:flex;white-space:nowrap;width:24.59pt"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 1.94pt; letter-spacing: 0px; top: 0px;display:inline;">0.0%</div></div></div></div></td> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;white-space:nowrap;width:26.71pt"><div style="line-height:7.5pt;margin-left:4pt;margin-right:4pt;text-align:right;width:18.71pt"><div style="display:flex;margin:auto;width:20.71pt"><div style="display:flex;white-space:nowrap;width:20.71pt"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">5.0%</div></div></div></div></td> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;white-space:nowrap;width:29.31pt"><div style="line-height:7.5pt;margin-left:4pt;margin-right:1.5pt;text-align:right;width:22.31pt"><div style="display:flex;margin:auto;width:24.31pt"><div style="display:flex;white-space:nowrap;width:24.31pt"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">10.0%</div></div></div></div></td></tr> <tr style="height:8.5pt"> <td style="background-color:azure;padding-bottom:2pt;padding-top:3pt;vertical-align:Top;width:108.62pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:4pt;text-align:Left;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Common Shares Total Return</div></div></div></td> <td style="background-color:azure;padding-bottom:2pt;padding-top:3pt;vertical-align:Top;white-space:nowrap;width:34.19pt"><div style="line-height:7.5pt;margin-left:4pt;margin-right:4pt;text-align:right;width:26.19pt"><div style="display:flex;margin:auto;width:28.19pt"><div style="display:flex;white-space:nowrap;width:28.19pt"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">(17.09)%</div></div></div></div></td> <td style="background-color:azure;padding-bottom:2pt;padding-top:3pt;vertical-align:Top;white-space:nowrap;width:30.59pt"><div style="line-height:7.5pt;margin-left:4pt;margin-right:4pt;text-align:right;width:22.59pt"><div style="display:flex;margin:auto;width:24.59pt"><div style="display:flex;white-space:nowrap;width:24.59pt"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">(9.91)%</div></div></div></div></td> <td style="background-color:azure;padding-bottom:2pt;padding-top:3pt;vertical-align:Top;white-space:nowrap;width:30.59pt"><div style="line-height:7.5pt;margin-left:4pt;margin-right:4pt;text-align:right;width:22.59pt"><div style="display:flex;margin:auto;width:24.59pt"><div style="display:flex;white-space:nowrap;width:24.59pt"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">(2.74)%</div></div></div></div></td> <td style="background-color:azure;padding-bottom:2pt;padding-top:3pt;vertical-align:Top;white-space:nowrap;width:26.71pt"><div style="line-height:7.5pt;margin-left:4pt;margin-right:4pt;text-align:right;width:18.71pt"><div style="display:flex;margin:auto;width:20.71pt"><div style="display:flex;white-space:nowrap;width:20.71pt"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">4.43%</div></div></div></div></td> <td style="background-color:azure;padding-bottom:2pt;padding-top:3pt;vertical-align:Top;white-space:nowrap;width:29.31pt"><div style="line-height:7.5pt;margin-left:4pt;margin-right:1.5pt;text-align:right;width:22.31pt"><div style="display:flex;margin:auto;width:24.31pt"><div style="display:flex;white-space:nowrap;width:24.31pt"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">11.61%</div></div></div></div></td></tr></table></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Common Shares Total Return is composed of two elements-the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">distributions paid by the Fund to holders of Common Shares (the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">amount of which is largely determined by the net investment income of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund after paying dividend payments on any Preferred Shares issued </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">by the Fund and expenses on any forms of leverage outstanding) and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">gains or losses on the value of the securities and other instruments the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund owns. As required by SEC rules, the table assumes that the Fund is </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">more likely to suffer capital losses than to enjoy capital appreciation. For </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">example, to assume a total return of 0%, the Fund must assume that </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the income it receives on its investments is entirely offset by losses in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the value of those investments. This table reflects hypothetical </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">performance of the Fund’s portfolio and not the actual performance of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund’s Common Shares, the value of which is determined by market </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">forces and other factors.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Should the Fund elect to add additional leverage, any benefits of such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">additional leverage cannot be fully achieved until the proceeds resulting </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">from the use of such leverage have been received by the Fund and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">invested in accordance with the Fund’s investment objectives and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">policies. As noted above, the Fund’s willingness to use additional </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">leverage, and the extent to which leverage is used at any time, will </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">depend on many factors, including, among other things, PIMCO’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">assessment of the yield curve environment, interest rate trends, market </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">conditions and other factors.</div></div></div> <div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The following table is furnished in response to requirements of the SEC. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">It is designed to illustrate the effects of leverage through the use of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">senior securities, as that term is defined under Section 18 of the 1940 </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Act, on Common Share total return, assuming investment portfolio total </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">returns (consisting of income and changes in the value of investments </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">held in the Fund’s portfolio) of -10%, -5%, 0%, 5% and 10%. These </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">assumed investment portfolio returns are hypothetical figures and are </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">not necessarily indicative of the investment portfolio returns expected to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">be experienced by the Fund. The table below assumes the Fund’s use of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Preferred Shares representing approximately 0.28% of the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">average net assets, and, although not senior securities under the 1940 </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Act, the Fund’s use of reverse repurchase agreements representing </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">approximately 43.20% of the Fund’s average net assets during the year </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">ended December 31, 2023. The table below also assumes that the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">will pay dividends on Preferred Shares at an estimated annual rate of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">12.00% for the Preferred Shares and interest on reverse repurchase </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">agreements at an estimated annual effective interest expense rate of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">6.26% (based on market interest rates as of December 31, 2023). </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Based on such estimates, the annual return that the Fund’s portfolio </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">must experience (net of expenses) in order to cover such costs is </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">1.91%.The information below does not reflect the Fund’s use of certain </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other forms of economic leverage achieved through the use of other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instruments or transactions not considered to be senior securities under </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the 1940 Act, such as credit default swaps or other derivative </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instruments. The assumed investment portfolio returns in the table </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">below are hypothetical figures and are not necessarily indicative of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment portfolio returns expected to be experienced by the Fund. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Your actual returns may be greater or less than those appearing below. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">In addition, actual borrowing expenses associated with reverse </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">repurchase agreements (or dollar rolls/buybacks or borrowings, if any) </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">used by the Fund may vary frequently and may be significantly higher or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">lower than the rate used for the example below.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 1pt; letter-spacing: 0px; top: 0px;display:inline;"> </div> <table cellpadding="0" cellspacing="0" style="text-align:start; border-bottom:0.5pt solid #00687D;empty-cells:show;width:260pt"> <tr style="height:21.5pt"> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:108.62pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:4pt;text-align:Left;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Assumed Portfolio Total Return (Net </div></div><div style="margin-left:3pt;margin-right:4pt;text-align:Left;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">of Expenses)</div></div></div></td> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;white-space:nowrap;width:34.19pt"><div style="line-height:7.5pt;margin-left:4pt;margin-right:4pt;text-align:right;width:26.19pt"><div style="display:flex;margin:auto;width:28.19pt"><div style="display:flex;white-space:nowrap;width:28.19pt"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">(10.0)%</div></div></div></div></td> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;white-space:nowrap;width:30.59pt"><div style="line-height:7.5pt;margin-left:4pt;margin-right:4pt;text-align:right;width:22.59pt"><div style="display:flex;margin:auto;width:24.59pt"><div style="display:flex;white-space:nowrap;width:24.59pt"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">(5.0)%</div></div></div></div></td> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;white-space:nowrap;width:30.59pt"><div style="line-height:7.5pt;margin-left:4pt;margin-right:4pt;text-align:right;width:22.59pt"><div style="display:flex;margin:auto;width:24.59pt"><div style="display:flex;white-space:nowrap;width:24.59pt"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 1.94pt; letter-spacing: 0px; top: 0px;display:inline;">0.0%</div></div></div></div></td> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;white-space:nowrap;width:26.71pt"><div style="line-height:7.5pt;margin-left:4pt;margin-right:4pt;text-align:right;width:18.71pt"><div style="display:flex;margin:auto;width:20.71pt"><div style="display:flex;white-space:nowrap;width:20.71pt"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">5.0%</div></div></div></div></td> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;white-space:nowrap;width:29.31pt"><div style="line-height:7.5pt;margin-left:4pt;margin-right:1.5pt;text-align:right;width:22.31pt"><div style="display:flex;margin:auto;width:24.31pt"><div style="display:flex;white-space:nowrap;width:24.31pt"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">10.0%</div></div></div></div></td></tr> <tr style="height:8.5pt"> <td style="background-color:azure;padding-bottom:2pt;padding-top:3pt;vertical-align:Top;width:108.62pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:4pt;text-align:Left;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Common Shares Total Return</div></div></div></td> <td style="background-color:azure;padding-bottom:2pt;padding-top:3pt;vertical-align:Top;white-space:nowrap;width:34.19pt"><div style="line-height:7.5pt;margin-left:4pt;margin-right:4pt;text-align:right;width:26.19pt"><div style="display:flex;margin:auto;width:28.19pt"><div style="display:flex;white-space:nowrap;width:28.19pt"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">(17.09)%</div></div></div></div></td> <td style="background-color:azure;padding-bottom:2pt;padding-top:3pt;vertical-align:Top;white-space:nowrap;width:30.59pt"><div style="line-height:7.5pt;margin-left:4pt;margin-right:4pt;text-align:right;width:22.59pt"><div style="display:flex;margin:auto;width:24.59pt"><div style="display:flex;white-space:nowrap;width:24.59pt"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">(9.91)%</div></div></div></div></td> <td style="background-color:azure;padding-bottom:2pt;padding-top:3pt;vertical-align:Top;white-space:nowrap;width:30.59pt"><div style="line-height:7.5pt;margin-left:4pt;margin-right:4pt;text-align:right;width:22.59pt"><div style="display:flex;margin:auto;width:24.59pt"><div style="display:flex;white-space:nowrap;width:24.59pt"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">(2.74)%</div></div></div></div></td> <td style="background-color:azure;padding-bottom:2pt;padding-top:3pt;vertical-align:Top;white-space:nowrap;width:26.71pt"><div style="line-height:7.5pt;margin-left:4pt;margin-right:4pt;text-align:right;width:18.71pt"><div style="display:flex;margin:auto;width:20.71pt"><div style="display:flex;white-space:nowrap;width:20.71pt"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">4.43%</div></div></div></div></td> <td style="background-color:azure;padding-bottom:2pt;padding-top:3pt;vertical-align:Top;white-space:nowrap;width:29.31pt"><div style="line-height:7.5pt;margin-left:4pt;margin-right:1.5pt;text-align:right;width:22.31pt"><div style="display:flex;margin:auto;width:24.31pt"><div style="display:flex;white-space:nowrap;width:24.31pt"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;">11.61%</div></div></div></div></td></tr></table> -0.1709 -0.0991 -0.0274 0.0443 0.1161 <div style="line-height:14.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Principal Risks of the Fund</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 12pt; line-height: 14pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;"> </div></div></div></div><div style="line-height:12.0pt;margin-top:2pt;text-align:left"><div style="margin-top:2pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">The NAV of the Common Shares will fluctuate with and be affected by, </div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">among other things, various principal risks of the Fund and its </div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">investments which are summarized below. The Fund is subject to the </div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">principal risks noted below, whether through the Fund’s direct </div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">investments, investments by subsidiaries or derivatives positions.</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Limited Prior History</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund is a non-diversified, closed-end management investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">company with limited history of operations and is designed for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">long-term investors and not as a trading vehicle.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Investment and Market Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The market price of securities owned by the Fund may go up or down, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sometimes rapidly or unpredictably. Securities may decline in value due </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to factors affecting securities or real estate markets generally or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">particular industries or companies represented in the securities or real </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">estate markets. The value of a security may decline due to general </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">market conditions that are not specifically related to a particular </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">company, such as real or perceived adverse economic conditions, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">changes in the general outlook for corporate earnings, changes in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest or currency rates, adverse changes to credit markets or adverse </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investor sentiment generally. The value of a security may also decline </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">due to factors that affect a particular industry or industries, such as </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">labor shortages or increased production costs and competitive </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">conditions within an industry. Conversely, a change in financial </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">condition or other event affecting a single issuer may adversely impact </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities markets as a whole. During a general downturn in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities markets, multiple asset classes may decline in value </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">simultaneously even if the performance of those asset classes is not </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">otherwise historically correlated. Investments may also be negatively </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">impacted by market disruptions and by attempts by other market </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">participants to manipulate the prices of particular investments. Equity </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities generally have greater price volatility than fixed income </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities. Credit ratings downgrades may also negatively affect </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities held by the Fund. Even when markets perform well, there is no </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">assurance that the investments held by the Fund will increase in value </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">along with the broader market.</div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">In addition, market risk includes the risk that geopolitical and other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">events will disrupt the economy on a national or global level. For </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instance, war or military conflict, terrorism, social unrest, recessions, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">supply chain disruptions, market manipulation, government defaults, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">government shutdowns, political changes, diplomatic developments or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the imposition of sanctions and other similar measures, public health </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">emergencies (such as the spread of infectious diseases, pandemics and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">epidemics), natural/environmental disasters, climate-change and climate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">related events can all negatively impact the securities markets, which </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">could cause the Fund to lose value. These events could reduce consumer </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">demand or economic output, result in market closures, changes in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest rates, inflation/deflation, travel restrictions or quarantines, and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">significantly adversely impact the economy.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">As computing technology and data analytics continually advance there </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">has been an increasing trend towards machine driven and artificially </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">intelligent trading systems, particularly providing such systems with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">increasing levels of autonomy in trading decisions. Regulators of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">financial markets have become increasingly focused on the potential </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">impact of artificial intelligence on investment activities and may issue </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">regulations that are intended to affect the use of artificial technology in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">trading activities. Any such regulations may not have the intended affect </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">on financial markets. Moreover, advancements in artificial intelligence </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and other technologies may suffer from the introduction of errors, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">defects or security vulnerabilities which can go undetected. The </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">potential speed of such trading technology may exacerbate the impact </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of any such flaws, particularly where such flaws are exploited by other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">artificially intelligent systems and may act to impair or prevent the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">intervention of a human control.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The current contentious domestic political environment, as well as </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">political and diplomatic events within the United States and abroad, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such as presidential elections in the U.S. or abroad or the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">U.S. government’s inability at times to agree on a long-term budget and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">deficit reduction plan, has in the past resulted, and may in the future </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">result, in a government shutdown or otherwise adversely affect the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">U.S. regulatory landscape, the general market environment and/or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investor sentiment, which could have an adverse impact on the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments and operations. Additional and/or prolonged U.S. federal </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">government shutdowns may affect investor and consumer confidence </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and may adversely impact financial markets and the broader economy, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">perhaps suddenly and to a significant degree. Governmental and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">quasi-governmental authorities and regulators throughout the world </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">have previously responded to serious economic disruptions with a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">variety of significant fiscal and monetary policy changes. The reversal of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">any fiscal and/or monetary policies or the ineffectiveness of these </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">policies, could increase volatility in securities markets, which could </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">adversely affect the Fund’s investments. Any market disruptions could </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">also prevent the Fund from executing advantageous investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">decisions in a timely manner. Funds that have focused their investments </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in a region enduring geopolitical market disruption will face higher risks </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of loss. Thus, investors should closely monitor current market conditions </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to determine whether the Fund meets their individual financial needs </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and tolerance for risk.</div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Recently, there have been inflationary price movements. As such, fixed </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">income securities markets may experience heightened levels of interest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rate, volatility and liquidity risk. As discussed more under “Interest Rate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Risk,” the Federal Reserve has raised interest rates from historically low </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">levels. Any additional interest rate increases in the future could cause </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the value of any fund, such as the Fund, that invests in fixed income </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities to decrease.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Although interest rates have significantly increased since 2022 through </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the date of this prospectus, the prices of real estate-related assets </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">generally have not decreased as much as may be expected based on </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">historical correlations between interest rates and prices of real </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">estate-related assets. This presents an increased risk of a correction or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">severe downturn in real estate-related asset prices, which could </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">adversely impact the value of other investments as well (such as loans, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securitized debt and other fixed income securities). This risk is </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">particularly present with respect to commercial real estate-related asset </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">prices, and the value of other investments with a connection to the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">commercial real estate sector. As examples of the current risks faced by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">real estate-related assets: tenant vacancy rates, tenant turnover and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">tenant concentration have increased; owners of real estate have faced </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">headwinds, delinquencies and difficulties in collecting rents and other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">payments (which increases the risk of owners being unable to pay or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">otherwise defaulting on their own borrowings and obligations); </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">property values have declined; inflation, upkeep costs and other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">expenses have increased; and rents have declined for many properties.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Exchanges and securities markets may close early, close late or issue </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">trading halts on specific securities, which may result in, among other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">things, the Fund being unable to buy or sell certain securities or financial </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instruments at an advantageous time or accurately price its portfolio </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Distribution Rate Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund's distribution rates may be affected by numerous factors, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">including but not limited to changes in realized and projected market </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">returns, fluctuations in market interest rates, Fund performance and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other factors. The Fund’s distributions may be comprised of a return of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">capital. In general terms, a return of capital would occur where a Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">distribution (or portion thereof) represents a return of a portion of your </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment, rather than net income or capital gains generated from your </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment during a particular period. There can be no assurance that a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">change in market conditions or other factors will not result in a change </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in the Fund’s distribution rate or that the rate will be sustainable in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">future. See “Distributions” for a description of return of capital and its </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">impacts. There can be no assurance that a change in market conditions </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or other factors will not result in a change in a Fund’s distribution rate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or that the rate will be sustainable in the future. For instance, during </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">periods of low or declining interest rates, the Fund’s distributable </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">income and dividend levels may decline for many reasons. For example, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund may have to deploy uninvested assets (whether from sales of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund shares, proceeds from matured, traded or called debt obligations </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or other sources) in new, lower yielding instruments. Additionally, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">payments from certain instruments that may be held by the Fund (such </div></div></div> <div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">as variable and floating rate securities) may be negatively impacted by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">declining interest rates, which may also lead to a decline in the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">distributable income and dividend levels.</div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Liquidity Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">To the extent consistent with the applicable liquidity requirements for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interval funds under Rule 23c-3 under the 1940 Act, the Fund may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">invest without limit in illiquid investments. Liquidity risk exists when </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">particular investments are difficult to purchase or sell at the time that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund would like or at the price that the Fund believes such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments are currently worth. Many of the Fund’s investments may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">be illiquid. The term “illiquid investments” for this purpose means any </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment that the Fund reasonably expects cannot be sold or disposed </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of in current market conditions in seven calendar days or less without </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the sale or disposition significantly changing the market value of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment. Illiquid investments may become harder to value, especially </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in changing markets. The Fund’s investments in illiquid investments may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">reduce the returns of the Fund because it may be unable to sell the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">illiquid investments at an advantageous time or price or possibly require </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund to dispose of other investments at unfavorable times or prices </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in order to satisfy its obligations, which could prevent the Fund from </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">taking advantage of other investment opportunities. Illiquidity can be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">caused by, among other things, a drop in overall market trading volume, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">an inability to find a willing buyer, or legal restrictions on the securities’ </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">resale. Additionally, the market for certain investments may become </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">illiquid under adverse market or economic conditions independent of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">any specific adverse changes in the conditions of a particular issuer. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Bond markets have consistently grown over the past three decades </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">while the capacity for traditional dealer counterparties to engage in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">fixed income trading has not kept pace and in some cases has </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">decreased. As a result, dealer inventories of corporate bonds, which </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">provide a core indication of the ability of financial intermediaries to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">“make markets,” are at or near historic lows in relation to market size. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Because market makers seek to provide stability to a market through </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">their intermediary services, the significant reduction in dealer inventories </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">could potentially lead to decreased liquidity and increased volatility in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the fixed income markets. Such issues may be exacerbated during </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">periods of economic uncertainty. In such cases, the Fund, due to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">regulatory limitations on investments in illiquid investments and the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">difficulty in purchasing and selling such securities or instruments, may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">be unable to achieve its desired level of exposure to a certain sector. To </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the extent that the Fund’s principal investment strategies involve </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities of companies with smaller market capitalizations, foreign </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(non-U.S.) securities, Rule 144A securities, senior loans, illiquid sectors </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of fixed income securities, derivatives or securities with substantial </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">market and/or credit risk, the Fund will tend to have the greatest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">exposure to liquidity risk. Further, fixed income securities with longer </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">durations until maturity face heightened levels of liquidity risk as </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">compared to fixed income securities with shorter durations until </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">maturity. The risks associated with illiquid instruments may be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">particularly acute in situations in which the Fund’s operations require </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">cash (such as in connection with repurchase offers) and could result in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund borrowing to meet its short-term needs or incurring losses on </div></div></div> <div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the sale of illiquid instruments. It may also be the case that other market </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">participants may be attempting to liquidate fixed income holdings at the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">same time as the Fund, causing increased supply in the market and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">contributing to liquidity risk and downward pricing pressure. Liquidity </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">risk also refers to the risk that the Fund may be required to hold </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">additional cash or sell other investments in order to obtain cash to close </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">out derivatives or meet the liquidity demands that derivatives can create </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to make payments of margin, collateral, or settlement payments to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">counterparties. The Fund may have to sell a security at a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">disadvantageous time or price to meet such obligations. The current </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">direction of governments and regulators may have the effect of reducing </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">market liquidity, market resiliency and money supply, such as through </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">higher rates, tighter financial regulations and proposals related to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">open-end fund liquidity that may prevent mutual funds and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">exchange-traded funds from participating in certain markets.</div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Management Risk</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;"> </div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund is subject to management risk because it is an actively </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">managed investment portfolio. PIMCO will apply investment techniques </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and risk analysis in making investment decisions for the Fund. There can </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">be no guarantee that these decisions will produce the desired results or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">that the due diligence conducted by PIMCO and individual portfolio </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">managers will expose all material risks associated with an investment. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Additionally, PIMCO and individual portfolio managers may not be able </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to identify suitable investment opportunities and may face competition </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">from other investment managers when identifying and consummating </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">certain investments, or may determine that certain factors are more </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">significant than others. Certain securities or other instruments in which </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund seeks to invest may not be available in the quantities desired, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">including in circumstances where other funds for which PIMCO acts as </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment adviser are seeking to invest in the same or similar securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or instruments. In addition, regulatory restrictions, actual or potential </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">conflicts of interest or other considerations may cause PIMCO to restrict </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or prohibit participation in certain investments. In such circumstances, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">PIMCO may determine to purchase other securities or instruments as </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">substitutes. Such substitute securities or instruments may not perform as </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">intended, which could result in losses to the Fund. To the extent the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund employs strategies targeting perceived pricing inefficiencies, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">arbitrage strategies or similar strategies, it is subject to the risk that the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">pricing or valuation of the securities and instruments involved in such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">strategies may change unexpectedly, which may result in reduced </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">returns or losses to the Fund. The Fund is also subject to the risk that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">deficiencies in the internal systems or controls of PIMCO or another </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">service provider will cause losses for the Fund or hinder Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">operations. For example, trading delays or errors (both human and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">systemic) could prevent the Fund from purchasing a security expected to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">appreciate in value. Please refer to “Portfolio Managers – Conflicts of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Interest” in the SAI for further information. Additionally, legislative, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">regulatory, or tax restrictions, policies or developments may affect the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment techniques available to PIMCO in connection with managing </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund, may cause PIMCO to restrict or prohibit participation in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">certain investments and may also adversely affect the ability of the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to achieve its investment objectives. There also can be no assurance that </div></div></div> <div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">all of the personnel of PIMCO will continue to be associated with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">PIMCO for any length of time. The loss of the services of one or more key </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">employees of PIMCO could have an adverse impact on the Fund’s ability </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to realize its investment objectives.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">In addition, the Fund may rely on various third-party sources to calculate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">its NAV. As a result, the Fund is subject to certain operational risks </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">associated with reliance on service providers and service providers’ data </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sources. In particular, errors or systems failures and other technological </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">issues may adversely impact the Fund’s calculations of its NAV, and such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">NAV calculation issues may result in inaccurately calculated NAVs, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">delays in NAV calculation and/or the inability to calculate NAVs over </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">extended periods. The Fund may be unable to recover any losses </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">associated with such failures.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Delay in Use of Proceeds Risk</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;"> </div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Although the Fund currently intends to invest the proceeds from any </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sale of the Common Shares offered hereby as soon as practicable, such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments may be delayed if suitable investments are unavailable at </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the time. Pending investment, the net proceeds of the offering may be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">invested in permitted temporary investments, which include short-term </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">U.S. government securities, bank certificates of deposit and other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">short-term liquid investments. The rate of return on these investments, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which affects the amount of cash available to make distributions, may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">be less than the return obtainable from the type of investments in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">real estate industry the Fund seeks to originate or acquire. Such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments may also make it more difficult for the Fund to qualify as a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">REIT. Therefore, delays the Fund encounters in the selection, due </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">diligence and origination or acquisition of investments would likely limit </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">its ability to pay distributions and lower overall returns. In the event the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund is unable to find suitable investments such temporary investments </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may be maintained for longer periods which would be dilutive to overall </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment returns. This could cause a substantial delay in the time it </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">takes for a shareholder’s investment to realize its full potential return.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Best Efforts Offering</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;"> </div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">This offering is being made on a “best efforts” basis, meaning the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Distributor and broker-dealers participating in the offering are only </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">required to use their best efforts to sell the Fund’s shares and have no </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">firm commitment or obligation to sell any of the shares. In the event of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the liquidation, dissolution or winding up of the Fund, Common </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Shareholders are entitled to receive the then-current NAV per share of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the assets legally available for distribution to the Fund’s Common </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Shareholders, after payment of or adequate provision for all of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s known debts and liabilities, including any outstanding debt </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities or other borrowings and any interest thereon. These rights are </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">subject to the preferential rights of outstanding shares of any other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">class or series of the Fund’s shares, including any Preferred Shares.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Competition Risk</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;"> </div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Identifying, completing and realizing attractive portfolio investments is </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">competitive and involves a high degree of uncertainty. The Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">profitability depends, in large part, on its ability to acquire target assets </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">at attractive prices. In acquiring its target assets, the Fund will compete </div></div></div> <div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">with a variety of institutional investors, including specialty finance </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">companies, public and private funds (including other funds managed by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">PIMCO), REITs, commercial and investment banks, commercial finance </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and insurance companies and other financial institutions. Also, as a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">result of this competition, desirable investments in the Fund’s target </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">assets may be limited in the future and the Fund may not be able to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">take advantage of attractive investment opportunities from time to time, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">as the Fund can provide no assurance that it will be able to identify and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">make investments that are consistent with its investment objectives. The </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund cannot assure you that the competitive pressures it faces will not </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">have a material adverse effect on its business, financial condition and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">results of operations or the Fund’s ability to locate, consummate and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">exit investments that satisfy its investment objectives.</div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Non-Diversification Risk</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;"> </div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund is “non-diversified,” which means that the Fund may invest a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">greater percentage of its assets in the securities of a smaller number of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">issuers than a diversified fund. A fund that invests in a relatively smaller </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">number of issuers is more susceptible to risks associated with a single </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">economic, political or regulatory occurrence than a diversified fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">might be. Similarly, the Fund may be subject to increased economic, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">business or political risk to the extent that it invests a substantial </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">portion of its assets in a particular currency, in a group of related </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">industries, in a particular issuer, in the bonds of similar projects or in a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">narrowly defined geographic area outside the U.S. Notwithstanding the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s status as a “non-diversified” investment company under the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">1940 Act, the Fund intends to qualify as a REIT accorded special tax </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">treatment under the Code, which imposes its own diversification </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">requirements.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Illiquid Investment Risk</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;"> </div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Many of the Fund’s investments will be illiquid, including the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">private commercial real estate investments. A variety of factors could </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">make it difficult for the Fund to dispose of any of its illiquid assets on </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">acceptable terms even if a disposition is in the best interests of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s Common Shareholders. The Fund cannot predict whether it will </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">be able to sell any asset for the price or on the terms set by it or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">whether any price or other terms offered by a prospective purchaser </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">would be acceptable to the Fund. The Fund also cannot predict the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">length of time needed to find a willing purchaser and to close the sale </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of an asset. The Fund may be required to expend cash to correct defects </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or to make improvements before an asset can be sold, and there can be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">no assurance that it will have cash available to correct those defects or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to make those improvements. As a result, the Fund’s ability to sell </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments in response to changes in economic and other conditions </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">could be limited. Limitations on the Fund’s ability to respond to adverse </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">changes in the performance of its investments may have a material </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">adverse effect on the Fund’s business, financial condition and results of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">operations and the Fund’s ability to make distributions.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div> <div style="line-height:12.0pt;text-align:left"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Real Estate Investment Risk</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund’s investments will be subject to the risks inherent in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">ownership and operation of real estate and real estate-related </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">businesses and assets. These risks include, but are not limited to:</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div><div style="clear:both;margin-top:6pt;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the burdens of ownership of real property;</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">general and local economic conditions (such as an oversupply of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">space or a reduction in demand for space);</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the supply and demand for properties (including competition </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">based on rental rates);</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">energy and supply shortages;</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">fluctuations in average occupancy and room rates;</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the attractiveness, type and location of the properties and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">changes in the relative popularity of commercial properties as an </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment;</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the financial condition and resources of tenants, buyers and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sellers of properties;</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">increased mortgage defaults;</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the quality of maintenance, insurance and management services;</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">changes in the availability of debt financing which may render the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sale or refinancing of properties difficult or impracticable;</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">changes in building, environmental and other laws and/or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">regulations (including those governing usage and improvements), </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">fiscal policies and zoning laws;</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">changes in real property tax rates;</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">changes in interest rates and the availability of mortgage funds </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which may render the sale or refinancing of properties difficult or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">impracticable;</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">changes in operating costs and expenses;</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">uninsured losses or delays from casualties or condemnation;</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">negative developments in the economy that depress travel or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">leasing activity;</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">environmental liabilities;</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">contingent liabilities on disposition of assets;</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">uninsured or uninsurable casualties;</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">acts of God, including earthquakes, hurricanes and other natural </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">disasters;</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">social unrest and civil disturbances, epidemics, pandemics or other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">public crises;</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">terrorist attacks and war;</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">risks and operating problems arising out of the presence of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">certain construction materials, structural or property-level latent </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">defects, work stoppages, labor shortages, strikes, union relations </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and contracts, fluctuating prices and supply of labor and/or other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">labor-related factor; and</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other factors which are beyond the control of the Investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Manager and its affiliates.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">In addition, the Fund’s investments will be subject to various risks which </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">could cause fluctuations in occupancy, rental rates, operating income </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and expenses or which could render the sale or financing of its </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">properties difficult or unattractive. For example, following the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">termination or expiration of a tenant’s lease, there may be a period of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">time before the Fund will begin receiving rental payments under a </div></div></div> <div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">replacement lease. During that period, the Fund will continue to bear </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">fixed expenses such as interest, real estate taxes, maintenance and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other operating expenses. In addition, declining economic conditions </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may impair the Fund’s ability to attract replacement tenants and achieve </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rental rates equal to or greater than the rents paid under previous </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">leases. Increased competition for tenants may require the Fund to make </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">capital improvements to properties which would not have otherwise </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">been planned. Ultimately, to the extent that the Fund is unable to renew </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">leases or re-let space as leases expire, decreased cash flow from tenants </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">will result, which could adversely impact the Fund’s operating results. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Furthermore, events involving limited liquidity, defaults, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">non-performance or other adverse developments that affect financial </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">institutions or the financial services industry generally, or concerns or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rumors about any events of these kinds or other similar risks, have in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">past and may in the future lead to market-wide liquidity problems.</div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Market Disruptions Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund is subject to investment and operational risks associated with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">financial, economic and other global market developments and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">disruptions, including those arising from war, military conflicts, terrorism, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">social unrest, recessions, supply chain disruptions, market manipulation, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">government interventions, defaults and shutdowns, political changes or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">diplomatic developments, public health emergencies (such as the spread </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of infectious diseases, pandemics and epidemics), bank failures and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">natural/environmental disasters, which can all negatively impact the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities markets, interest rates, auctions, secondary trading, ratings, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">credit risk, inflation, deflation and other factors relating to the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments or the Investment Manager’s operations and the value of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">an investment in the Fund, its distributions and its returns. These events </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">can also impair the technology and other operational systems upon </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which the Fund’s service providers, including PIMCO as the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment adviser, rely, and could otherwise disrupt the Fund’s service </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">providers’ ability to fulfill their obligations to the Fund. Furthermore, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">events involving limited liquidity, defaults, non-performance or other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">adverse developments that affect financial institutions or the financial </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">services industry generally, or concerns or rumors about any events of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">these kinds or other similar risks, have in the past and may in the future </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">lead to market-wide liquidity problems.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Commercial Real Estate Industry Risk</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;"> </div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund’s business and operations are dependent on the commercial </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">real estate industry generally, which in turn is dependent upon broad </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">economic conditions. Challenging economic and financial market </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">conditions may cause the Fund to experience an increase in the number </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of private commercial real estate investments that result in losses, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">including delinquencies, non-performing assets and a decrease in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">value of the property or, in the case of real estate debt and traded real </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">estate-related securities, collateral which secures its investments, all of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which could adversely affect the Fund’s results of operations. The Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may need to establish significant provisions for losses or impairment, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and be forced to sell assets at undesirable prices, which may result in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund’s NAV declining and the Fund incurring substantial losses.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div> <div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Additionally, economic conditions can negatively impact the businesses </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of tenants of the Fund’s private commercial real estate investments, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which in turn could cause the Fund to experience increased </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">delinquencies or decreasing rents, either of which would negatively </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">impact the Fund’s income. These conditions may increase the volatility of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the value of private commercial real estate investments made by the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund. These developments also may make it more difficult for the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to accurately value its investments or to sell its investments on a timely </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">basis. These developments, including elevated interest rates relative to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">previous years, or a gradual decline in interest rates from these elevated </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">levels, could adversely affect the ability of the Fund to use leverage for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment purposes and increase the cost of such leverage, which </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">would reduce returns. Such developments could, in turn, diminish </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">significantly the Fund’s revenue from investments and adversely affect </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund’s NAV.</div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Private Commercial Real Estate Risk</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;"> </div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Lease defaults, terminations by one or more tenants or landlord-tenant </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">disputes may reduce the Fund’s revenues and net income. Any of these </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">situations may result in extended periods during which there is a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">significant decline in revenues or no revenues generated by a property. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">If this occurred, it could adversely affect the Fund’s performance.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund’s financial position and its ability to make distributions may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">also be adversely affected by financial difficulties experienced by any </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">major tenants, including bankruptcy, insolvency or a general downturn </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in the business, or in the event any major tenants do not renew or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">extend their relationship as their lease terms expire. A tenant in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">bankruptcy may be able to restrict the ability to collect unpaid rents or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest during the bankruptcy proceeding. Furthermore, dealing with a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">tenants’ bankruptcy or other default may divert management’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">attention and cause the Fund to incur substantial legal and other costs.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund’s investments in real estate will be pressured in challenging </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">economic and rental market conditions. If the Fund is unable to re-let or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">renew leases for all or substantially all of the space at these properties, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">if the rental rates upon such renewal or re-letting are significantly lower </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">than expected, or if the Fund’s reserves for these purposes prove </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">inadequate, the Fund will experience a reduction in net income and may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">be required to reduce or eliminate cash distributions.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund may obtain only limited warranties when it purchases an </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">equity investment in private commercial real estate. The purchase of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">properties with limited warranties increases the risk that the Fund may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">lose some or all of its invested capital in the property, as well as the loss </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of rental income from that property if an issue should arise that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">decreases the value of that property and is not covered by the limited </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">warranties. If any of these results occur, it may have a material adverse </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">effect on the Fund’s business, financial condition and results of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">operations and the Fund’s ability to make distributions.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Single Tenant Risk</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;"> </div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund depends on its tenants for revenue, and therefore the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">revenue is dependent on the success and economic viability of its </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">tenants. Certain of the Fund’s investments in single tenant properties </div></div></div> <div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may be leased out to single tenants that the Investment Manager </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">believes have favorable credit profiles and/or performance attributes </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">supporting highly visible long-term cash flows. Adverse impacts to such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">tenants, including as a result of changes in market or economic </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">conditions, natural disasters, outbreaks of an infectious disease, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">pandemic or any other serious public health concern, political events or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other factors that may impact the operation of these properties, may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">have negative effects on the Fund’s business and financial results. As a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">result, such tenants may in the future be required to suspend operations </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">at the Fund’s properties for what could be an extended period of time. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Further, if such tenants default under their leases, the Fund may not be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">able to promptly enter into a new lease or operating arrangement for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such properties, rental rates or other terms under any new leases or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">operating arrangement may be less favorable than the terms of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">current lease or operating arrangement or the Fund may be required to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">make capital improvements to such properties for a new tenant, any of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which could adversely impact the Fund’s operating results.</div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Litigation Risk</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;"> </div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">In the ordinary course of its business, the Fund may be subject to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">litigation from time to time. The outcome of such proceedings may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">materially adversely affect the value of the Fund or its investments and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may continue without resolution for long periods of time. Any litigation </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may consume substantial amounts of the Investment Manager’s time </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and attention, and that time and the devotion of these resources to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">litigation may, at times, be disproportionate to the amounts at stake in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the litigation.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The acquisition, ownership and disposition of real properties carries </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">certain specific litigation risks. Litigation may be commenced with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">respect to a property acquired by the Fund or its subsidiaries in relation </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to activities that took place prior to the Fund’s acquisition of such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">property. In addition, at the time of disposition of an individual property, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">a potential buyer may claim that it should have been afforded the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">opportunity to purchase the asset or alternatively that such potential </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">buyer should be awarded due diligence expenses incurred or statutory </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">damages for misrepresentation relating to disclosure made, if such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">buyer is passed over in favor of another as part of the Fund’s efforts to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">maximize sale proceeds. Similarly, successful buyers may later sue the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund under various damage theories, including those sounding in tort, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">for losses associated with latent defects or other problems not </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">uncovered in due diligence.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Insurance Risk</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;"> </div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Certain types of losses, generally of a catastrophic nature, such as </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">earthquakes, floods and hurricanes may be uninsurable or not </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">economically insurable. The Fund may not obtain, or be able to require </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">tenants to obtain certain types of insurance if it is deemed commercially </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">unreasonable. Under such circumstances, the insurance proceeds, if any, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">might not be adequate to restore the economic value of the property, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which might decrease the value of the property. As a result, the insured </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">company could lose its investments in, and anticipated profits and cash </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">flows from, a number of properties and, as a result, adversely affect the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s investment performance.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div> <div style="line-height:12.0pt;text-align:left"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Environmental Risk</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund may be exposed to substantial risk of loss arising from </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments involving undisclosed or unknown environmental, health or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">occupational safety matters, or inadequate reserves, insurance or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">insurance proceeds for such matters that have been previously </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">identified. Under various U.S. federal, state and local and non-U.S. laws, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">ordinances and regulations, an owner of real property may be liable for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the costs of removal or remediation of certain hazardous or toxic </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">substances on or in such property. Such laws may also impose joint and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">several liability, which can result in a party being obligated to pay for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">greater than its share, or even all, of the liability involved. Such liability </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may also be imposed without regard to whether the owner knew of, or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">was responsible for, the presence of such hazardous or toxic substances </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and may be imposed on the owner in connection with the activities of a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">tenant at the property. The cost of any required remediation and the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">owner’s liability therefore as to any property are generally not limited </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">under such laws and could exceed the value of the property and/or the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">aggregate assets of the owner. The presence of such substances, or the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">failure to properly remediate contamination from such substances, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">would adversely affect the owner’s ability to sell the real estate or to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">borrow funds using such property as collateral, which could have an </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">adverse effect on the Fund’s return from such investment. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Environmental claims with respect to a specific investment could exceed </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the value of such investment, and under certain circumstances, subject </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the other assets of the Fund to such liabilities. In addition, some </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">environmental laws create a lien on contaminated property in favor of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">governments or government agencies for costs they incur in connection </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">with the contamination.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The ongoing presence of environmental contamination, pollutants or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other hazardous materials on a property (whether known at the time of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">acquisition or not) could also result in personal injury (and associated </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">liability) to persons on the property and persons removing such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">materials, future or continuing property damage (which would adversely </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">affect property value) or claims by third parties, including as a result of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">exposure to such materials through the spread of contaminants.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">In addition, the Fund’s operating costs and performance may be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">adversely affected by compliance obligations under environmental </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">protection statutes, rules and regulations relating to investments of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund, including additional compliance obligations arising from any </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">change to such statutes, rules and regulations. Statutes, rules and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">regulations may also restrict development of, and use of, property. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Certain clean-up actions brought by governmental agencies and private </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">parties could also impose obligations in relation to the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments and result in additional costs to the Fund. If the Fund is </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">deemed liable for any such environmental liabilities and is unable to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">seek recovery against its tenant, the Fund’s business, financial condition </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and results of operations could be materially and adversely affected, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and the amount available to make distributions could be reduced.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div> <div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Further, even in cases where the Fund is indemnified by the seller with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">respect to an investment against liabilities arising out of violations of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">environmental laws and regulations, there can be no assurance as to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the financial viability of the seller to satisfy such indemnities or the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">ability of the Fund to achieve enforcement of such indemnities.</div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Joint Venture Risk</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;"> </div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund expects to enter into joint ventures with third parties to make </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments. Joint ventures entered into by the Fund would only include </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">arrangements in which the Fund does not primarily control the joint </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">venture. The Fund’s partial interest investments will generally be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">structured as joint ventures or co-investment arrangements with third </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">parties. In these joint ventures, the Fund would generally share control </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">with the third-party partner (for example the Fund may have approval </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rights over some of the joint venture’s activities, and in limited </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">circumstances that do not amount to primary control of the joint </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">venture, may have the ability to require that the joint venture take </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">specific actions), even though the Fund may hold a majority of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">economic interests of a joint venture. In many cases the third-party </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">partner may provide services for the joint venture or its assets, including, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">without limitation, management of day-to-day operations, asset </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">management, property management, construction or development </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">management, leasing, refinancing or disposition related services. The </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund may also make investments in partnerships or other co-ownership </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">arrangements or participations. Such investments may involve risks not </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">otherwise present with other methods of investment, including, for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instance, the following risks and conflicts of interest:</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the joint venture partner in an investment could become insolvent </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or bankrupt;</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">fraud or other misconduct by the joint venture partner;</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund may share decision-making authority with its joint </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">venture partner regarding certain major decisions affecting the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">ownership of the joint venture and the joint venture property, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such as the sale of the property or the making of additional </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">capital contributions for the benefit of the property, which may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">prevent the Fund from taking actions that are opposed by its joint </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">venture partner;</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">under certain joint venture arrangements, neither party may have </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the power to control the venture and, under certain </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">circumstances, an impasse could result regarding cash </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">distributions, reserves, or a proposed sale or refinancing of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment, and this impasse could have an adverse impact on </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the joint venture, which could adversely impact the operations </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and profitability of the joint venture and/or the amount and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">timing of distributions the Fund receives from such joint venture;</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the joint venture partner may at any time have economic or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">business interests or goals that are or that become in conflict with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund’s business interests or goals, including, for instance, the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">operation of the properties;</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the joint venture partner may be structured differently than the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund for tax purposes and this could create conflicts of interest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and risk to the Fund’s ability to qualify as a REIT;</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund may rely upon its joint venture partner to manage the </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div> <div style="line-height:12.0pt;margin-left:22pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">day-to-day operations of the joint venture and underlying assets, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">as well as to prepare financial information for the joint venture </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and any failure to perform these obligations may have a negative </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">impact on the Fund’s performance and results of operations;</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the joint venture partner may experience a change of control, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which could result in new management of the joint venture </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">partner with less experience or conflicting interests to the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and be disruptive to the Fund’s business;</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such joint venture partner may be in a position to take action </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">contrary to the Fund’s instructions or requests or contrary to the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s policies or objectives, including the Fund’s policy with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">respect to maintaining its qualification as a REIT;</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the terms of the joint ventures could restrict the Fund’s ability to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sell or transfer its interest to a third party when it desires on </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">advantageous terms, which could result in reduced liquidity;</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund or its joint venture partner may have the right to trigger </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">a buy-sell arrangement, which could cause the Fund to sell its </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest, or acquire its partner’s interest, at a time when the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">otherwise would not have initiated such a transaction;</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the joint venture partner may not have sufficient personnel or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">appropriate levels of expertise to adequately support the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">initiatives; and</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to the extent it is permissible under the Investment Company Act </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">for the Fund to partner with other vehicles advised by the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Investment Manager, the Investment Manager may have conflicts </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of interest that may not be resolved in the Fund’s favor.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">In addition, disputes between the Fund and its joint venture partner may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">result in litigation or arbitration that would increase the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">expenses and prevent the Fund’s officers and trustees from focusing </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">their time and efforts on the Fund’s business. Any of the above might </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">subject the Fund to liabilities and thus reduce its returns on the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment with the joint venture partner. The Fund may at times enter </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">into arrangements that provide for unfunded commitments and, even </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">when not contractually obligated to do so, may be incentivized to fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">future commitments related to its investments.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Recourse Financings Risk</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;"> </div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">In certain cases, financings for the Fund’s commercial real estate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">properties may be recourse to the Fund. Generally, commercial real </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">estate financings are structured as non-recourse to the borrower, which </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">limits a lender’s recourse to the property pledged as collateral for the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">loan, and not the other assets of the borrower or to any parent of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">borrower, in the event of a loan default. However, lenders customarily </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">will require that a creditworthy parent entity enter into so-called </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">“recourse carveout” guarantees to protect the lender against certain </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">bad-faith or other intentional acts of the borrower in violation of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">loan documents. A “bad boy” guarantee typically provides that the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">lender can recover losses from the guarantors for certain bad acts, such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">as fraud or intentional misrepresentation, intentional waste, willful </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">misconduct, criminal acts, misappropriation of funds, voluntary </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">incurrence of prohibited debt and environmental losses sustained by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">lender. In addition, “bad boy” guarantees typically provide that the loan </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">will be a full personal recourse obligation of the guarantor, for certain </div></div></div> <div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">actions, such as prohibited transfers of the collateral or changes of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">control and voluntary bankruptcy of the borrower. These financing </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">arrangements with respect to the Fund’s investments generally require </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">“bad boy” guarantees from the Fund and/or certain of the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">subsidiaries and in the event that such a guarantee is called, the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">assets could be adversely affected. Moreover, the Fund’s “bad boy” </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">guarantees could apply to actions of the joint venture partners </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">associated with the Fund’s investments. While the Investment Manager </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">expects to negotiate indemnities from such joint venture partners to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">protect against such risks, there remains the possibility that the acts of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such joint venture partner could result in liability to the Fund under such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">guarantees. PIMCO may provide “bad boy” guarantees on behalf of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other funds, investment vehicles and accounts managed by PIMCO </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investing alongside the Fund and as such guarantees are not for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">borrowed money, they will typically not be included under the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">leverage limitations.</div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Valuation Risk</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;"> </div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Certain securities, including certain real estate investments that the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund makes, in which the Fund invests may be less liquid and more </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">difficult to value than other types of securities. Investments for which </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">market quotations are not readily available are valued at fair value as </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">determined in good faith pursuant to Rule 2a-5 under the Act. See </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">“How Fund Shares are Priced.” Fair value pricing may require subjective </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">determinations about the value of a security or other asset. As a result, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">there can be no assurance that fair value pricing will result in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">adjustments to the prices of securities or other assets, or that fair value </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">pricing will reflect actual market value, and it is possible that the fair </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">value determined for a security or other asset will be materially different </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">from quoted or published prices, from the prices used by others for the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">same security or other asset and/or from the value that actually could be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or is realized upon the sale of that security or other asset. The price the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund pays for its private commercial real estate investments will be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">based on the Investment Manager’s projections of market demand, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">occupancy levels, rental income, the costs of any development, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">redevelopment or renovation of a property, borrower expertise and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other factors. If any of the Investment Manager’s projections are </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">inaccurate or it ascribes a higher value to assets and their value </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">subsequently drops or fails to rise because of market factors, returns on </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund’s investment may be lower than expected and the Fund could </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">experience losses.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">For the purposes of calculating the Fund’s NAV, private commercial real </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">estate investments typically will initially be valued at cost, which the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund expects to represent fair value at that time. Thereafter, valuations </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of properties will be derived from independent property appraisals or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">based on one or more fair valuation methodologies as determined by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">PIMCO in accordance with its policies and procedures.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The valuation methodologies used to value the Fund’s private </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">commercial real estate investments will involve subjective judgments </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and projections that may not materialize. Valuation methodologies will </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">also involve assumptions and opinions about future events, which may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or may not materialize. Valuations and appraisals of the Fund’s private </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">commercial real estate investments will be only estimates of fair value. </div></div></div> <div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Ultimate realization of the value of an asset depends to a great extent </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">on economic, market and other conditions beyond the Fund’s control </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and the control of the Investment Manager and the Fund’s independent </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">valuation advisors, as applicable.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Valuations and appraisals of the Fund’s private commercial real estate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments are only conducted on a periodic basis. If the relevant </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">asset’s value changes after such appraisal, it will be difficult for PIMCO </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to quantify the impact of such change and the necessary information to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">make a full assessment of the value may not be immediately available, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which may require the Investment Manager to make an assessment of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">fair value with incomplete information. The participation of PIMCO in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund’s valuation process could result in a conflict of interest, since </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the advisory fee is based on the Fund’s average daily net assets. A </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">material change in a private commercial real estate investment or a new </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">appraisal of a private commercial real estate investment may have a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">material impact on the Fund’s overall NAV, resulting in a sudden </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">increase or decrease to the Fund’s NAV per share. Further, valuations do </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">not necessarily represent the price at which an asset would sell, since </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">market prices of assets can only be determined by negotiation between </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">a willing buyer and seller. As such, the carrying value of an asset may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">not reflect the price at which the asset could be sold in the market, and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the difference between carrying value and the ultimate sales price could </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">be material. In addition, accurate valuations are more difficult to obtain </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in times of low transaction volume because there are fewer market </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">transactions that can be considered in the context of the appraisal. It </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">also may be difficult to reflect fully and accurately rapidly changing </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">market conditions or material events that may impact the value of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s real property investments between valuations, or to obtain </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">complete information regarding any such events in a timely manner. For </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">example, an unexpected termination or renewal of a material lease, a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">material increase or decrease in vacancies, an unanticipated structural </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or environmental event at a property or material changes in market, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">economic and political conditions globally and in the jurisdictions and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sectors in which a property operates, may cause the value of a property </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to change materially, yet obtaining sufficient relevant information after </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the occurrence has come to light and/or analyzing fully the financial </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">impact of such an event may be difficult to do and may require some </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">time. As a result, the Fund’s NAV per share may not reflect a material </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">event until such time as sufficient information is available and the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">impact of such an event on a property’s valuation is evaluated, such that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund’s NAV may be appropriately updated. The Investment Manager </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">expects to utilize the independent valuation advisors’ appraisals in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">determining the fair value of the private commercial real estate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments. There will be no retroactive adjustment in the valuation of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such assets, the offering price of the Common Shares, the price the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">paid to repurchase Common Shares or NAV-based fees the Fund paid to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">PIMCO and the Distributor to the extent such valuations prove to not </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">accurately reflect the realizable value of the Fund’s assets. Because the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">price shareholders will pay for Common Shares in this offering, and the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">price at which shares will be repurchased in quarterly repurchase offers </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">by the Fund, are based on NAV per share of Common Shares, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">shareholders may pay more than realizable value or receive less than </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">realizable value for an investment in the Fund.</div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Risks Related to Specific Private Commercial Real Estate </div></div><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Property Types</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund may invest across various CRE property types, including, but </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">not limited to residential, industrial, and office, retail, hospitality and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">select niche sectors. The Fund’s exposure to any of the aforementioned </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">property types may change based on PIMCO’s outlook, which may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">expose the Fund to risks. For example, the Fund’s investments in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">multifamily properties may be affected by declining rents or may incur </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">vacancies either by the expiration and non-renewal of tenant leases or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the continued default of tenants under their leases, resulting in reduced </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">revenues and less cash available to distribute to Common Shareholders. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fluctuations in manufacturing activity in the United States may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">adversely affect the tenants of the Fund’s industrial properties and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">therefore the demand for and profitability of its industrial properties. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Office properties are subject to risks that the tenants of those office </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">properties face, including the overall health of the economy, the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">possibility of a downturn in the businesses operated by the tenants, lack </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of demand or obsolescence of the products or services provided by the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">tenants, and the non-competitiveness of the office tenants relative to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">their competitors. Specialty properties are subject to risks specific to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">their specialty use. For example, student housing properties are subject </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to seasonality and increased leasing risk and may be adversely affected </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">by a change in university admission policies. Additional niche sectors </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may include, among others, data centers, life sciences, medical offices, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and self-storage. The above is not an exhaustive list of the sectors that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund expects to invest in or the risks associated with those sectors. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund is not obliged to target all (or any one) of the above asset </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">classes or strategies.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Mortgage Loan Risk</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;"> </div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund may originate and selectively acquire senior mortgage loans </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which are generally loans secured by a first mortgage lien on a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">commercial property and are subject to risks of delinquency and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">foreclosure and risks of loss, that are greater than similar risks </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">associated with loans made on the security of single-family residential </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">property. In addition, certain of the mortgage loans in which the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">invests may be structured so that all or a substantial portion of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">principal will not be paid until maturity, which increases the risk of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">default at that time. The ability of a borrower to repay a loan secured by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">an income-producing property typically is dependent primarily upon the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">successful operation of such property rather than upon the existence of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">independent income or assets of the borrower. If the net operating </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">income of the property is reduced, the borrower’s ability to repay the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">loan may be impaired. Net operating income of an income-producing </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">property can be affected by, among other things: tenant mix, success of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">tenant businesses, property management decisions, property location </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and condition, competition from comparable types of properties, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">changes in laws that increase operating expense or limit rents that may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">be charged, any need to address environmental contamination at the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">property, the occurrence of any uninsured casualty at the property, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">changes in national, regional or local economic conditions and/or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">specific industry segments, declines in regional or local real estate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">values, declines in regional or local rental or occupancy rates, increases </div></div></div> <div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in interest rates, real estate tax rates and other operating expenses, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">changes in governmental rules, regulations and fiscal policies, including </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">environmental legislation, acts of God, terrorism, social unrest, civil </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">disturbances, epidemics and other public crises.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">In the event of any default under a mortgage loan held directly by the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund, it will bear a risk of loss of principal to the extent of any deficiency </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">between the value of the collateral and the principal and accrued </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest of the mortgage loan, which could have a material adverse </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">effect on the profitability of the Fund. In the event of the bankruptcy of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">a mortgage loan borrower, the mortgage loan to such borrower will be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">deemed to be secured only to the extent of the value of the underlying </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">collateral at the time of bankruptcy (as determined by the bankruptcy </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">court), and the lien securing the mortgage loan will be subject to the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">avoidance powers of the bankruptcy trustee or debtor-in-possession to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the extent the lien is unenforceable under state law.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Foreclosure of a mortgage loan can be an expensive and lengthy </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">process which could have a substantial negative effect on the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">anticipated return on the foreclosed mortgage loan. RMBS evidence </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interests in or are secured by pools of residential mortgage loans and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">CMBS evidence interests in or are secured by a single commercial </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgage loan or a pool of commercial mortgage loans. Accordingly, the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgage-backed securities in which the Fund invests are subject to all </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of the risks of the underlying mortgage loans.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Mezzanine Loan Risk</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;"> </div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund may invest in mezzanine loans that take the form of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">subordinated loans secured by a pledge of the ownership interests of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">either the entity owning the real property or the entity that owns the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest in the entity owning the real property. These types of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments involve a higher degree of risk than first mortgage lien </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">loans secured by income producing real property because the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment may become unsecured as a result of foreclosure by the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">senior lender. In the event of a bankruptcy of the entity providing the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">pledge of its ownership interests as security, the Fund may not have full </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">recourse to the assets of such entity, or the assets of the entity may not </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">be sufficient to satisfy the Fund’s mezzanine loan. If a borrower defaults </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">on the Fund’s mezzanine loan or debt senior to the Fund’s loan, or in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the event of a borrower bankruptcy, the Fund’s mezzanine loan will be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">satisfied only after the senior debt. As a result, the Fund may not recover </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">some or all of its investment. In addition, mezzanine loans may have </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">higher loan-to-value ratios than conventional mortgage loans, resulting </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in less equity in the real property and increasing the risk of loss of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">principal.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Certain Affiliations</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Certain broker-dealers may be considered to be affiliated persons of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund and/or the Investment Manager due to their possible affiliations </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">with Allianz SE, the ultimate parent of the Investment Manager, or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">another Allianz entity. Allianz Asset Management of America LP merged </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">with Allianz Asset Management, with the latter being the surviving </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">entity, effective January 1, 2023. Following the merger, Allianz Asset </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Management is PIMCO LLC’s managing member and direct parent </div></div></div> <div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">entity. Absent an exemption from the SEC or other regulatory relief, the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund is generally precluded from effecting certain principal transactions </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">with affiliated brokers, and its ability to purchase securities being </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">underwritten by an affiliated broker or a syndicate including an affiliated </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">broker, or to utilize affiliated brokers for agency transactions, is subject </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to restrictions. This could limit the Fund’s ability to engage in securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">transactions and take advantage of market opportunities.</div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Mortgage-Related and Other Asset-Backed Instruments Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The mortgage-related assets in which the Fund may invest include, but </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">are not limited to, any security, instrument or other asset that is related </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to U.S. or non-U.S. mortgages, including those issued by private </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">originators or issuers, or issued or guaranteed as to principal or interest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">by the U.S. government or its agencies or instrumentalities or by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">non-U.S. governments or authorities, such as, without limitation, assets </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">representing interests in, collateralized or backed by, or whose values </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">are determined in whole or in part by reference to any number of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgages or pools of mortgages or the payment experience of such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgages or pools of mortgages, including REMICs, which could </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">include Re-REMICs, mortgage pass-through securities, inverse floaters, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">CMOs, CLOs, multiclass pass-through securities, private mortgage </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">pass-through securities, stripped mortgage securities (generally </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest-only and principal-only securities), mortgage-related asset </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">backed securities and mortgage-related loans (including through </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">participations, assignments, originations and whole loans), including </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">commercial and residential mortgage loans. Exposures to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgage-related assets through derivatives or other financial </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instruments will be considered investments in mortgage-related assets.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund may also invest in other types of ABS, including CDOs, CBOs </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and CLOs and other similarly structured securities. See “Investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Objectives and Strategies-Portfolio Composition” in this prospectus for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">a description of the various mortgage-related and other asset-backed </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instruments in which the Fund may invest and their related risks.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Mortgage-related and other asset-backed instruments represent </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interests in “pools” of mortgages or other assets such as consumer </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">loans or receivables held in trust and often involve risks that are </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">different from or possibly more acute than risks associated with other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">types of debt instruments.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Generally, rising interest rates tend to extend the duration of fixed rate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgage-related assets, making them more sensitive to changes in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest rates. Compared to other fixed income investments with similar </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">maturity and credit, mortgage-related securities may increase in value to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">a lesser extent when interest rates decline and may decline in value to a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">similar or greater extent when interest rates rise. As a result, in a period </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of rising interest rates, the Fund may exhibit additional volatility since </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">individual mortgage holders are less likely to exercise prepayment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">options, thereby putting additional downward pressure on the value of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">these securities and potentially causing the Fund to lose money. This is </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">known as extension risk. Mortgage-backed securities can be highly </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sensitive to rising interest rates, such that even small movements can </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">cause the Fund to lose value. Mortgage-backed securities, and in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">particular those not backed by a government guarantee, are subject to </div></div></div> <div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">credit risk. When interest rates decline, borrowers may pay off their </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgages sooner than expected. This can reduce the returns of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund because the Fund may have to reinvest that money at the lower </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">prevailing interest rates. In addition, the creditworthiness, servicing </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">practices, and financial viability of the servicers of the underlying </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgage pools present significant risks. For instance, a servicer may be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">required to make advances in respect of delinquent loans underlying the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgage-related securities; however, servicers experiencing financial </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">difficulties may not be able to perform these obligations. Additionally, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">both mortgage-related securities and asset-backed securities are subject </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to risks associated with fraud or negligence by, or defalcation of, their </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">servicers. These securities are also subject to the risks of the underlying </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">loans. In some circumstances, a servicer’s or originator’s mishandling of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">documentation related to the underlying collateral (e.g., failure to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">properly document a security interest in the underlying collateral) may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">affect the rights of security holders in and to the underlying collateral. In </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">addition, the underlying loans may have been extended pursuant to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">inappropriate underwriting guidelines, to no underwriting guidelines at </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">all, or to fraudulent origination practices. The owner of a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgage-backed security’s ability to recover against the sponsor, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">servicer or originator is uncertain and is often limited. The Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments in other asset-backed instruments are subject to risks </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">similar to those associated with mortgage-related assets, as well as </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">additional risks associated with the nature of the assets and the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">servicing of those assets. Payment of principal and interest on </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">asset-backed instruments may be largely dependent upon the cash </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">flows generated by the assets backing the instruments, and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">asset-backed instruments may not have the benefit of any security </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest in the related assets.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Subordinate mortgage-backed or asset-backed instruments are paid </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest only to the extent that there are funds available to make </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">payments. To the extent the collateral pool includes a large percentage </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of delinquent loans, there is a risk that interest payments on </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">subordinate mortgage-backed or asset-backed instruments will not be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">fully paid.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">There are multiple tranches of mortgage-backed and asset-backed </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instruments, offering investors various maturity and credit risk </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">characteristics. For example, tranches may be categorized as senior, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mezzanine, and subordinated/equity or “first loss,” according to their </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">degree of risk. The most senior tranche of a mortgage-backed or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">asset-backed instrument generally has the greatest collateralization and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">generally pays the lowest interest rate. If there are defaults or the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">collateral otherwise underperforms, scheduled payments to senior </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">tranches take precedence over those of mezzanine tranches, and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">scheduled payments to mezzanine tranches take precedence over those </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to subordinated/equity tranches. Lower tranches represent lower </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">degrees of credit quality and pay higher interest rates intended to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">compensate for the attendant risks. The return on the lower tranches is </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">especially sensitive to the rate of defaults in the collateral pool.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The lowest tranche (i.e., the “equity” or “residual” tranche) specifically </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">receives the residual interest payments (i.e., money that is left over after </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the higher tranches have been paid and expenses of the issuing entities </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">have been paid) rather than a fixed interest rate. The Fund may also </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">invest in the residual or equity tranches of mortgage-related and other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">asset-backed instruments, which may be referred to as subordinate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgage-backed or asset-backed instruments and interest-only </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgage-backed or asset-backed instruments. The Fund expects that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments in subordinate mortgage-backed and other asset-backed </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instruments will be subject to risks arising from delinquencies and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">foreclosures, thereby exposing its investment portfolio to potential </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">losses. Subordinate securities of mortgage-backed and other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">asset-backed instruments are also subject to greater credit risk than </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">those mortgage-backed or other asset-backed instruments that are </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">more highly rated.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The mortgage markets in the United States and in various foreign </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">countries have experienced extreme difficulties in the past that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">adversely affected the performance and market value of certain </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgage-related investments. Delinquencies and losses on residential </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and commercial mortgage loans (especially subprime and second-lien </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgage loans) may increase, and a decline in or flattening of housing </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and other real property values may exacerbate such delinquencies and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">losses. In addition, reduced investor demand for mortgage loans and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgage-related securities and increased investor yield requirements </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">have caused limited liquidity in the secondary market for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgage-related securities, which can adversely affect the market value </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of mortgage-related securities. It is possible that such limited liquidity in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such secondary markets could continue or worsen.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Risks Related to Investments in Publicly Traded REITs</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;"> </div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund’s investments in the securities of publicly traded REITs will be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">subject to a variety of risks affecting those REITs directly. Share prices of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">publicly traded REITs may decline because of adverse developments </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">affecting the real estate industry and real property values, including </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">supply and demand for properties, the economic health of the country </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or of different regions, the strength of specific industries that rent </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">properties and interest rates. REITs often invest in highly leveraged </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">properties. Returns from REITs, which typically are small or medium </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">capitalization stocks, may trail returns from the overall stock market. In </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">addition, changes in interest rates may hurt real estate values or make </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">REIT shares less attractive than other income-producing investments. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">REITs are also subject to heavy cash flow dependency and defaults by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">borrowers and tenants.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Repurchase Offers Risk</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;"> </div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">As described under “Periodic Repurchase Offers” above, the Fund is an </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">“interval fund” and, in order to provide liquidity to shareholders, the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund, subject to applicable law, intends to conduct quarterly repurchase </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">offers of the Fund’s outstanding Common Shares at NAV, subject to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">approval of the Board. In each quarter, such repurchase offers will be for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">at least 5% and not more than 25% of its outstanding Common Shares </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">at NAV, pursuant to Rule 23c-3 under the Act.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund currently expects to conduct quarterly repurchase offers for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">5% of its outstanding Common Shares under ordinary circumstances. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund believes that these repurchase offers are generally beneficial </div></div></div> <div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to the Fund’s shareholders, and repurchases generally will be funded </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">from available cash or sales of portfolio securities. However, repurchase </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">offers and the need to fund repurchase obligations may affect the ability </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of the Fund to be fully invested or force the Fund to maintain a higher </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">percentage of its assets in liquid investments, which may harm the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s investment performance. Moreover, diminution in the size of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund through repurchases may result in untimely sales of portfolio </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities (with associated imputed transaction costs, which may be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">significant), and may limit the ability of the Fund to participate in new </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment opportunities or to achieve its investment objectives. The </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund may accumulate cash by holding back (i.e., not reinvesting) </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">payments received in connection with the Fund’s investments. If at any </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">time cash and other liquid assets held by the Fund are not sufficient to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">meet the Fund’s repurchase obligations, the Fund intends, if necessary, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to sell investments. To the extent the Fund employs investment leverage, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">repurchases of Common Shares would compound the adverse effects of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">leverage in a declining market. In addition, if the Fund borrows to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">finance repurchases, interest on that borrowing will negatively affect </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Common Shareholders who do not tender their Common Shares by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">increasing the Fund’s expenses and reducing any net investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">income. If a repurchase offer is oversubscribed, the Fund may, but is not </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">required to, determine to increase the amount repurchased by up to 2% </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of the Fund’s outstanding shares as of the date of the Repurchase </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Request Deadline. In the event that the Fund determines not to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">repurchase more than the repurchase offer amount, or if shareholders </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">tender more than the repurchase offer amount plus 2% of the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">outstanding shares as of the date of the Repurchase Request Deadline, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund will repurchase the Common Shares tendered on a pro rata </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">basis, and shareholders will have to wait until the next repurchase offer </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to make another repurchase request. As a result, shareholders may be to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">liquidate all or a given percentage of their investment in the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">during a particular repurchase offer. Some shareholders, in anticipation </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of proration, may tender more Common Shares than they wish to have </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">repurchased in a particular quarter, thereby increasing the likelihood </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">that proration will occur. A shareholder may be subject to market and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other risks, and the NAV of Common Shares tendered in a repurchase </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">offer may decline between the Repurchase Request Deadline and the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">date on which the NAV for tendered Common Shares is determined. In </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">addition, the repurchase of Common Shares by the Fund may be a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">taxable event to shareholders.</div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">High Yield Securities Risk</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;"> </div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Issuers of high yield securities may have the right to “call” or redeem </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the issue prior to maturity, which may result in the Fund having to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">reinvest the proceeds in other high yield securities or similar instruments </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">that may pay lower interest rates. The Fund may also be subject to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">greater levels of liquidity risk than funds that do not invest in high yield </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities. Consequently, transactions in high yield securities may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">involve greater costs than transactions in more actively traded </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities. A lack of publicly-available information, irregular trading </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">activity and wide bid/ask spreads among other factors, may, in certain </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">circumstances, make high yield debt more difficult to sell at an </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">advantageous time or price than other types of securities or </div></div></div> <div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instruments. These factors may result in the Fund being unable to realize </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">full value for these securities and/or may result in the Fund not receiving </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the proceeds from a sale of a high yield security for an extended period </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">after such sale, each of which could result in losses to the Fund. To the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">extent that the Fund invests in high yield securities and unrated </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities of similar credit quality (commonly known as “high yield </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities” or “junk bonds”), the Fund may be subject to greater levels </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of credit risk, call risk and liquidity risk than funds that do not invest in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such securities, which could have a negative effect on the NAV of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s Common Shares or Common Share dividends. These securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">are considered predominantly speculative with respect to an issuer’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">continuing ability to make principal and interest payments, and may be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">more volatile than other types of securities. An economic downturn or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">individual corporate developments could adversely affect the market for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">these securities and reduce the Fund’s ability to sell these securities at </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">an advantageous time or price. The Fund may purchase distressed </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities that are in default or the issuers of which are in bankruptcy, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which involve heightened risks.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">High yield securities structured as zero-coupon bonds or pay-in-kind </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities tend to be especially volatile as they are particularly sensitive </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to downward pricing pressures from rising interest rates or widening </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">spreads and may require the Fund to make taxable distributions of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">imputed income without receiving the actual cash currency. Issuers of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">high yield securities may have the right to “call” or redeem the issue </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">prior to maturity, which may result in the Fund having to reinvest the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">proceeds in other high yield securities or similar instruments that may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">pay lower interest rates. The Fund may also be subject to greater levels </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of liquidity risk than funds that do not invest in high yield securities. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Consequently, transactions in high yield securities may involve greater </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">costs than transactions in more actively traded securities. A lack of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">publicly-available information, irregulat trading actviity and wide </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">bid/ask spreads among other factors, may, in certain circumstances, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">make high yield debt more difficult to sell at an advantageous time or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">price than other types of securities or instruments. These factors may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">result in the Fund being unable to realize full value for these securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and/or may result in the Fund not receiving the proceeds from a sale of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">a high yield security for an extended period after such sale, each of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which could result in losses to the Fund. Because of the risks involved in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investing in high yield securities, an investment in the Fund should be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">considered speculative.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">In general, lower rated debt securities carry a greater degree of risk that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the issuer will lose its ability to make interest and principal payments, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which could have a negative effect on the Fund. Securities of below </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment grade quality are regarded as having predominantly </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">speculative characteristics with respect to capacity to pay interest and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">repay principal and are commonly referred to as “high yield” securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or “junk bonds.” High yield securities involve a greater risk of default </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and their prices are generally more volatile and sensitive to actual or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">perceived negative developments. Debt securities in the lowest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment grade category also may be considered to possess some </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">speculative characteristics by certain rating agencies. The Fund may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">purchase stressed or distressed securities that are in default or the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">issuers of which are in bankruptcy, which involve heightened risks. An </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">economic downturn could severely affect the ability of issuers </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(particularly those that are highly leveraged) to service or repay their </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">debt obligations. Lower-rated securities are generally less liquid than </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">higher-rated securities, which may have an adverse effect on the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">ability to dispose of them. For example, under adverse market or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">economic conditions, the secondary market for below investment grade </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities could contract further, independent of any specific adverse </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">changes in the condition of a particular issuer, and certain securities in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund’s portfolio may become illiquid or less liquid. As a result, the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund could find it more difficult to sell these securities or may be able to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sell these securities only at prices lower than if such securities were </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">widely traded. To the extent the Fund focuses on below investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">grade debt obligations, PIMCO’s capabilities in analyzing credit quality </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and associated risks will be particularly important, and there can be no </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">assurance that PIMCO will be successful in this regard. The Fund’s credit </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">quality policies apply only at the time a security is purchased, and the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund is not required to dispose of a security in the event that a rating </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">agency or PIMCO downgrades its assessment of the credit </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">characteristics of a particular issue. In determining whether to retain or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sell such a security, PIMCO may consider factors including, but not </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">limited to, PIMCO's assessment of the credit quality of the issuer of such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">security, the price at which such security could be sold and the rating, if </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">any, assigned to such security by other rating agencies. Analysis of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">creditworthiness may be more complex for issuers of high yield </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities than for issuers of higher quality debt securities.</div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Capital Markets Risk</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;"> </div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund expects to fund a portion of its commercial real estate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments with property-level financing. The Fund’s business may be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">adversely affected by disruptions in the debt and equity capital markets </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and institutional lending market, including the lack of access to capital </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or prohibitively high costs of obtaining or replacing capital. The ongoing </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">spread of COVID-19 has had, and may continue to have, a material </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">adverse effect on credit markets. There can be no assurance that any </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">financing will be available to the Fund in the future on acceptable </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">terms, if at all, or that it will be able to satisfy the conditions precedent </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">required to use its credit facilities, if entered into, which could reduce </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the number, or alter the type, of investments that the Fund would make </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">otherwise. This may reduce the Fund’s income. To the extent that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">financing proves to be unavailable when needed, the Fund may be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">compelled to modify its investment strategies to optimize the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">performance of the portfolio. Any failure to obtain financing could have </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">a material adverse effect on the continued development or growth of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund’s business and harm the Fund’s ability to operate and make </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">distributions.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Interest Rate Risk</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;"> </div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Interest rate risk is the risk that fixed income securities and other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instruments in the Fund’s portfolio will fluctuate in value because of a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">change in interest rates. For example, as nominal interest rates rise, the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">value of certain fixed income securities held by the Fund is likely to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">decrease. A nominal interest rate can be described as the sum of a real </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest rate and an expected inflation rate. Interest rate changes can be </div></div></div> <div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sudden and unpredictable, and the Fund may lose money as a result of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">movements in interest rates. The Fund may not be able to effectively </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">hedge against changes in interest rates or may choose not to do so for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">cost or other reasons.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">A wide variety of factors can cause interest rates or yields of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">U.S. Treasury securities (or yields of other types of bonds) to rise, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">including but not limited to central bank monetary policies, changing </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">inflation or real growth rates, general economic conditions, increasing </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">bond issuances or reduced market demand for low yielding investments. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Risks associated with changes in interest rates may be heightened </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">under certain market conditions, such as during times when the Federal </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Reserve raises interest rates or when such rates remain elevated </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">following a period of historically low levels. Additionally, the U.S. and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other governments have increased, and are likely to continue increasing, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">their debt issuances, which may also heighten these risks. In addition, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">changes in monetary policy may exacerbate the risks associated with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">changing interest rates. Further, in market environments where interest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rates are rising, issuers may be less willing or able to make principal and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest payments on fixed-income investments when due. There is the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">risk that the income generated by investments may not keep pace with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">inflation. Actions by governments and central banking authorities can </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">result in increases or decreases in interest rates. Periods of higher </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">inflation could cause such authorities to raise interest rates, which may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">adversely affect a Fund and its investments.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Further, fixed income securities with longer durations tend to be more </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sensitive to changes in interest rates, usually making them more volatile. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Duration is a measure used to determine the sensitivity of a security’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">price to changes in interest rates that incorporates a security’s yield, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">coupon, final maturity and call features, among other characteristics. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Duration is useful primarily as a measure of the sensitivity of a fixed </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">income security’s market price to interest rate (i.e., yield) movements. All </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other things remaining equal, for each one percentage point increase in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest rates, the value of a portfolio of fixed income investments would </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">generally be expected to decline by one percent for every year of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">portfolio’s average duration above zero. For example, the value of a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">portfolio of fixed income securities with an average duration of eight </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">years would generally be expected to decline by approximately 8% if </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest rates rose by one percentage point.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Variable and floating rate securities may decline in value if their interest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rates do not rise as much, or as quickly, as interest rates in general. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Conversely, floating rate securities will not generally increase in value if </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest rates decline. Inverse floating rate securities may decrease in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">value if interest rates increase. Inverse floating rate securities may also </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">exhibit greater price volatility than a fixed rate obligation with similar </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">credit quality. When the Fund holds variable or floating rate securities, a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">decrease (or, in the case of inverse floating rate securities, an increase) </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in market interest rates will adversely affect the income received from </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such securities and the NAV of the Fund’s shares.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">During periods of very low or negative interest rates, the Fund may be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">unable to maintain positive returns. Very low or negative interest rates </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may magnify interest rate risk. Changing interest rates, including rates </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">that fall below zero, may have unpredictable effects on markets, may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">result in heightened market volatility and may detract from Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">performance to the extent the Fund is exposed to such interest rates.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Measures such as average duration may not accurately reflect the true </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest rate sensitivity of the Fund. This is especially the case if the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">consists of securities with widely varying durations. Therefore, if the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund has an average duration that suggests a certain level of interest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rate risk, the Fund may in fact be subject to greater interest rate risk </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">than the average would suggest. This risk is greater to the extent the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund uses leverage or derivatives in connection with the management </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of the Fund.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Convexity is an additional measure used to understand a security's or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund's interest rate sensitivity. Convexity measures the rate of change of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">duration in response to changes in interest rates. With respect to a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">security’s price, a larger convexity (positive or negative) may imply more </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">dramatic price changes in response to changing interest rates. Convexity </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may be positive or negative. Negative convexity implies that interest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rate increases result in increased duration, meaning increased sensitivity </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in prices in response to rising interest rates. Thus, securities with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">negative convexity, which may include bonds with traditional call </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">features and certain mortgage-backed securities, may experience </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">greater losses in periods of rising interest rates. Accordingly, if the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">holds such securities, the Fund may be subject to a greater risk of losses </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in periods of rising interest rates.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Rising interest rates may result in a decline in value of the Fund’s fixed </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">income investments and in periods of volatility. Also, when interest rates </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rise, issuers are less likely to refinance existing debt securities, causing </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the average life of such securities to extend. Further, while U.S. bond </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">markets have steadily grown over the past three decades, dealer </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">“market making” ability has remained relatively stagnant. As a result, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">dealer inventories of certain types of bonds and similar instruments, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which provide a core indication of the ability of financial intermediaries </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to “make markets,” are at or near historic lows in relation to market </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">size. Because market makers provide stability to a market through their </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">intermediary services, a significant reduction in dealer inventories could </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">potentially lead to decreased liquidity and increased volatility in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">fixed income markets. Such issues may be exacerbated during periods of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">economic uncertainty. All of these factors, collectively and/or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">individually, could cause the Fund to lose value.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Regulatory Risk — LIBOR Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Certain instruments in which the Fund may invest have relied or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">continue to rely in some fashion upon LIBOR. LIBOR was traditionally an </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">average interest rate, determined by the ICE Benchmark Administration, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">that banks charge one another for the use of short-term money. On </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">March 5, 2021, the FCA, the United Kingdom’s financial regulatory body </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and regulator of LIBOR, publicly announced that all U.S. Dollar LIBOR </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">settings will either cease to be provided by any administrator or will no </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">longer be representative (i) immediately after December 31, 2021 for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">one-week and two-month U.S. Dollar LIBOR settings and (ii) </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">immediately after June 30, 2023 for the remaining U.S. Dollar LIBOR </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">settings. As of January 1, 2022, as a result of supervisory guidance from </div></div></div> <div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">U.S. regulators, U.S. regulated entities have generally ceased entering </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">into new LIBOR contracts with limited exceptions. Publication of all </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Japanese yen and the one- and six-month sterling LIBOR settings have </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">ceased, and while publication of the three-month Sterling LIBOR setting </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">will continue through at least the end of March 2024 on the basis of a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">changed methodology (known as “synthetic LIBOR”), this rate has been </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">designated by the FCA as unrepresentative of the underlying market </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">that it seeks to measure and is solely available for use in legacy </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">transactions. Certain bank-sponsored committees in other jurisdictions, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">including Europe, the United Kingdom, Japan and Switzerland, have </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">selected alternative reference rates denominated in other currencies. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Although the transition process away from LIBOR for many instruments </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">has been completed, some LIBOR use is continuing and there are </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">potential effects related to the transition away from LIBOR or continued </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">use of LIBOR on the Fund, or on certain instruments in which the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">invests, which can be difficult to ascertain, and may vary depending on </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">factors that include, but are not limited to: (i) existing fallback or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">termination provisions in individual contracts and (ii) whether, how, and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">when industry participants adopt new reference rates for affected </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instruments. So-called “tough legacy” contracts have LIBOR interest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rate provisions with no fallback provisions contemplating a permanent </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">discontinuation of LIBOR, inadequate fallback provisions or fallback </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">provisions which may not effectively result in a transition away from </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">LIBOR prior to LIBOR’s planned replacement date. On March 15, 2022, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Adjustable Interest Rate (LIBOR) Act was signed into law. This law </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">provides a statutory fallback mechanism on a nationwide basis to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">replace LIBOR with a benchmark rate that is selected by the Board of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Governors of the Federal Reserve System based on SOFR for tough </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">legacy contracts. On February 27, 2023, the Federal Reserve System’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">final rule in connection with this law became effective, establishing </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">benchmark replacements based on SOFR and Term SOFR (a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">forward-looking measurement of market expectations of SOFR implied </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">from certain derivatives markets) for applicable tough legacy contracts </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">governed by U.S. law. In addition, the FCA has announced that it will </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">require the publication of synthetic LIBOR for the one-month, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">three-month and six-month U.S. Dollar LIBOR settings after June 30, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">2023 through at least September 30, 2024. Certain of the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments may involve individual tough legacy contracts which may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">be subject to the Adjustable Interest Rate (LIBOR) Act or synthetic LIBOR </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and no assurances can be given that these measures will have had the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">intended effects. Moreover, certain aspects of the transition from LIBOR </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">have relied or will continue to rely on the actions of third-party market </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">participants, such as clearing houses, trustees, administrative agents, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">asset servicers and certain service providers; PIMCO cannot guarantee </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the performance of such market participants and any failure on the part </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of such market participants to manage their part of the LIBOR transition </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">could impact the Fund. The transition of investments from LIBOR to a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">replacement rate as a result of amendment, application of existing </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">fallbacks, statutory requirements or otherwise may also result in a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">reduction in the value of certain instruments held by the Fund or a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">reduction in the effectiveness of related Fund transactions such as </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">hedges. In addition, an instrument’s transition to a replacement rate </div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">could result in variations in the reported yields of the Fund that holds </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such instrument. Any such effects of the transition away from LIBOR, as </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">well as other unforeseen effects, could result in losses to the Fund.</div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Derivatives Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The use of derivative and other similar instruments (referred to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">collectively as “derivatives”) involves risks different from, and possibly </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">greater than, the risks associated with investing directly in securities and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other traditional investments. Derivatives are subject to a number of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">risks, such as liquidity risk (which may be heightened for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">highly-customized derivatives), interest rate risk, market risk, credit risk, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">leveraging risk, counterparty risk (including credit), operational risk, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">legal risk, tax risk and management risk, as well as risks arising from </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">changes in applicable requirements, risks arising from margin </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">requirements and risks arising from mispricing or valuation complexity. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">They also involve the risk of unfavorable or ambiguous documentation </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and the risk that changes in the value of the derivative may not </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">correlate perfectly with the underlying asset, rate or index. If the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">invests in a derivative instrument, it could lose more than the principal </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">amount invested and derivatives may increase the volatility of the Fund, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">especially in unusual or extreme market conditions. The Fund may be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">required to hold additional cash or sell other investments in order to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">obtain cash to close out a position and changes in the value of a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">derivative may also create margin delivery or settlement payment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">obligations for the Fund. Also, suitable derivative transactions may not </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">be available in all circumstances and there can be no assurance that the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund will engage in these transactions to reduce exposure to other risks </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">when that would be beneficial. The Fund’s use of derivatives may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">increase or accelerate the amount of taxes payable by Common </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Shareholders.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Participation in the markets for derivative instruments involves </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment risks and transaction costs to which the Fund may not be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">subject absent the use of these strategies.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Non-centrally-cleared over-the-counter (“OTC”) derivatives are also </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">subject to the risk that a counterparty to the transaction will not fulfill </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">its contractual obligations to the other party, as many of the protections </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">afforded to centrally-cleared derivatives might not be available for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">non-centrally-cleared OTC derivatives transactions. For derivatives </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">traded on an exchange or through a central counterparty, credit risk </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">resides with the Fund’s clearing broker, or the clearinghouse itself.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">It may not be possible for the Fund to modify, terminate, or offset the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s obligations or the Fund’s exposure to the risks associated with a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">derivative transaction prior to its scheduled termination or maturity </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">date, which may create a possibility of increased volatility and/or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">decreased liquidity to the Fund. Hedges are sometimes subject to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">imperfect matching between the derivative and the underlying </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instrument, and there can be no assurance that the Fund’s hedging </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">transactions will be effective. Because the markets for certain derivative </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instruments (including markets located in foreign countries) are </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">relatively new and still developing, appropriate derivative transactions </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may not be available in all circumstances for risk management or other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">purposes. Upon the expiration of a particular contract, a Fund may wish </div></div></div> <div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to retain its position in the derivative instrument by entering into a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">similar contract, but may be unable to do so if the counterparty to the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">original contract is unwilling to enter into the new contract and no other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">appropriate counterparty can be found. When such markets are </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">unavailable, a Fund will be subject to increased liquidity and investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">risk.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">When a derivative is used as a hedge against a position that the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">holds, any loss generated by the derivative generally should be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">substantially offset by gains on the hedged investment, and vice versa.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The regulation of the derivatives markets has increased over the past </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">several years, and additional future regulation of the derivatives markets </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may make derivatives more costly, may limit the availability or reduce </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the liquidity of derivatives, or may otherwise adversely affect the value </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or performance of derivatives. Any such adverse future developments </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">could impair the effectiveness or raise the costs of a Fund’s derivative </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">transactions, impede the employment of the Fund’s derivatives </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">strategies, or adversely affect the Fund’s performance and cause the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund to lose value.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Leverage Risk</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;"> </div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund’s use of leverage, if any, creates the opportunity for increased </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Common Share net income, but also creates special risks for Common </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Shareholders (including an increased risk of loss). To the extent used, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">there is no assurance that the Fund’s leveraging strategies will be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">successful. Leverage is a speculative technique that may expose the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund to greater risk and increased costs. The Fund’s assets attributable </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to leverage will be invested in accordance with the Fund’s investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">objectives and policies. Interest expense payable by the Fund with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">respect to derivatives and other forms of leverage, and dividends </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">payable with respect to any Preferred Shares outstanding will generally </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">be based on shorter-term interest rates that would be periodically reset. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">So long as the Fund’s portfolio investments provide a higher rate of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">return (net of applicable Fund expenses) than the interest expenses and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other costs to the Fund of such leverage, the investment of the proceeds </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">thereof will generate more income than will be needed to pay the costs </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of the leverage. If so, and all other things being equal, the excess may be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">used to pay higher dividends to Common Shareholders than if the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">were not so leveraged. If, however, shorter-term interest rates rise </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">relative to the rate of return on the Fund’s portfolio, the interest and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other costs to the Fund of leverage could exceed the rate of return on </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the debt obligations and other investments held by the Fund, thereby </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">reducing return to Common Shareholders. Leveraging transactions </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">pursued by the Fund may increase its duration and sensitivity to interest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rate movements. In addition, fees and expenses of any form of leverage </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">used by the Fund will be borne entirely by the Common Shareholders </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(and not by preferred shareholders) and will reduce the investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">return of the Common Shares. Therefore, there can be no assurance that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund’s use of leverage will result in a higher yield on the Common </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Shares, and it may result in losses. In addition, any Preferred Shares </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">issued by the Fund are expected to pay cumulative dividends, which may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">tend to increase leverage risk.</div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Leverage creates several major types of risks for Common Shareholders, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">including:</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the likelihood of greater volatility of NAV of Common Shares, and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of the investment return to Common Shareholders, than a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">comparable portfolio without leverage;</div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the possibility either that Common Share dividends will fall if the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest and other costs of leverage rise, or that dividends paid on </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Common Shares will fluctuate because such costs vary over time; </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the effects of leverage in a declining market or a rising interest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rate environment, as leverage is likely to cause a greater decline in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the NAV of the Common Shares than if the Fund were not </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">leveraged and may result in a greater decline in the market value </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of the Common Shares.</div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">In addition, the counterparties to the Fund’s leveraging </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">transactions and any preferred shareholders of the Fund will have </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">priority of payment over the Fund’s Common Shareholders.</div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Reverse repurchase agreements involve the risks that the interest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">income earned on the investment of the proceeds will be less than the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest expense and Fund expenses associated with the repurchase </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">agreement, that the market value of the securities sold by the Fund may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">decline below the price at which the Fund is obligated to repurchase </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such securities and that the securities may not be returned to the Fund. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">There is no assurance that reverse repurchase agreements can be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">successfully employed. Dollar roll transactions involve the risk that the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">market value of the securities the Fund is required to purchase may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">decline below the agreed upon repurchase price of those securities. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Successful use of dollar rolls/buybacks may depend upon the Investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Manager’s ability to correctly predict interest rates and prepayments. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">There is no assurance that dollar rolls/buybacks can be successfully </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">employed. In connection with reverse repurchase agreements and dollar </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rolls/buybacks, the Fund will also be subject to counterparty risk with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">respect to the purchaser of the securities. If the broker/dealer to whom </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund sells securities becomes insolvent, the Fund’s right to purchase </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or repurchase securities may be restricted.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund may engage in total return swaps, reverse repurchases, loans </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of portfolio securities, short sales and when-issued, delayed delivery and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">forward commitment transactions, credit default swaps, basis swaps </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and other swap agreements, purchases or sales of futures and forward </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">contracts (including foreign currency exchange contracts), call and put </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">options and/or other derivatives. The Fund’s use of such transactions </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">gives rise to associated leverage risks described above, and may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">adversely affect the Fund’s income, distributions and total returns to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Common Shareholders. To the extent that any offsetting positions do </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">not behave in relation to one another as expected, the Fund may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">perform as if it is leveraged through use of these derivative strategies.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Any total return swaps, reverse repurchases, loans of portfolio securities, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">short sales and when-issued, delayed delivery and forward commitment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">transactions, credit default swaps, basis swaps and other swap </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">agreements, purchases or sales of futures and forward contracts </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(including foreign currency exchange contracts), call and put options or </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other derivatives by the Fund or counterparties to the Fund’s other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">leveraging transactions, if any, would have seniority over the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Common Shares.</div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Additional Risks Relating to the Fund’s Preferred Shares</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;"> </div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Because the Fund has issued Preferred Shares, it is required to satisfy </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">certain asset coverage requirements, including those imposed by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">regulatory and rating agency requirements. Accordingly, any decline in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the net asset value of the Fund’s investments could result in the risk that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund will fail to meet its asset coverage requirements for such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Preferred Shares or the risk of the Preferred Shares being downgraded </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">by a rating agency. In an extreme case, the Fund’s current investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">income might not be sufficient to meet the dividend requirements on </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">any Preferred Shares outstanding. In order to address these types of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">events, the Fund might need to dispose of investments in order to fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">a redemption of some or all of its Preferred Shares. Dispositions at times </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of adverse economic conditions may result in a loss to the Fund. At </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other times, these dispositions may result in gain at the Fund level and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">thus in additional taxable distributions to Common Shareholders. See </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">“Certain U.S. Federal Income Tax Considerations” for more information. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Preferred Shares have seniority over the Fund’s Common Shares.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund pays (and the Common Shareholders bear) all costs and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">expenses relating to the issuance and ongoing maintenance of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Preferred Shares. In addition, holders of Preferred Shares issued by the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund have complete priority over Common Shareholders in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">distribution of the Fund’s assets. Furthermore, Preferred Shareholders, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">voting separately as a single class, have the right to elect two members </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of the Board at all times and to elect a majority of the trustees in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">event two full years’ dividends on the Preferred Shares are unpaid, and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">also have separate class voting rights on certain matters. Accordingly, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Preferred Shareholders may have interests that differ from those of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Common Shareholders, and may at times have disproportionate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">influence over the Fund’s affairs.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Potential Conflicts of Interest Risk – Allocation of Investment </div></div><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Opportunities</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;"> </div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Investment Manager and its affiliates are involved worldwide with a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">broad spectrum of financial services and asset management activities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and may engage in the ordinary course of business in activities in which </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">their interests or the interests of their clients may conflict with those of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund. The Investment Manager may provide investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">management services to other funds and discretionary managed </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">accounts that follow an investment program similar to that of the Fund. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Subject to the requirements of the 1940 Act, the Investment Manager </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">intends to engage in such activities and may receive compensation from </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">third parties for its services. The results of the Fund’s investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">activities may differ from those of the Fund’s affiliates, or another </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">account managed by the Fund’s affiliates, and it is possible that the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund could sustain losses during periods in which one or more of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s affiliates and/or other accounts managed by the Investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Manager or its affiliates, including proprietary accounts, achieve profits </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">on their trading.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div> <div style="line-height:12.0pt;text-align:left"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Geopolitical Conflicts</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The occurrence of geopolitical conflicts, war or terrorist activities could </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">have adverse impacts on markets in various and unpredictable ways. For </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">example, following Russia’s large-scale invasion of Ukraine in February </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">2022, Russia, and other countries, persons and entities that were </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">viewed as having provided material aid to Russia’s aggression against </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Ukraine, became the subject of economic sanctions and import and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">export controls imposed by countries throughout the world, including </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the United States. Such measures have had and may continue to have </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">an adverse effect on the Russian, Belarusian and other securities and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">economies. The extent, duration and impact of geopolitical conflicts and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">related market impacts are difficult to ascertain, but could be significant </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and could have significant adverse effects on regional and global </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">economies and the markets for certain securities and commodities, such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">as oil and natural gas, as well as other sectors, and on the Fund's </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Cyber Security Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">As the use of technology, including cloud-based technology, has </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">become more prevalent in the course of business, the Fund is potentially </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">more susceptible to operational and information security risks resulting </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">from breaches in cyber security. A breach in cyber security refers to both </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">intentional and unintentional cyber events from outside threat actors or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">internal resources that may, among other things, cause the Fund to lose </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">proprietary information, suffer data corruption and/or destruction, lose </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">operational capacity, result in the unauthorized release or other misuse </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of confidential information, or otherwise disrupt normal business </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">operations. Cyber security breaches may involve unauthorized access to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund’s digital information systems (e.g., through “hacking” or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">malicious software coding), and may come from multiple sources, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">including outside attacks such as denial-of-service attacks (i.e., efforts to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">make network services unavailable to intended users) or cyber extortion, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">including exfiltration of data held for ransom and/or “ransomware” </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">attacks that renders systems inoperable until ransom is paid, or insider </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">actions (e.g., intentionally or unintentionally harmful acts of PIMCO </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">personnel). In addition, cyber security breaches involving the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">third party service providers (including but not limited to advisers, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sub-advisers, administrators, transfer agents, custodians, vendors, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">suppliers, distributors and other third parties), trading counterparties or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">issuers in which the Fund invests can also subject the Fund to many of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the same risks associated with direct cyber security breaches or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">extortion of company data. PIMCO's use of cloud-based service </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">providers could heighten or change these risks. In addition, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">work-from-home arrangements by the Fund, the Investment Manager or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">their service providers could increase all of the above risks, create </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">additional data and information accessibility concerns, and make the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund, the Investment Manager or their service providers susceptible to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">operational disruptions, any of which could adversely impact their </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">operations.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Cyber security failures or breaches may result in financial losses to the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund and its shareholders. For example, cyber security failures or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">breaches involving trading counterparties or issuers in which the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">invests could adversely impact such counterparties or issuers and cause </div></div></div> <div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund’s investment to lose value. These failures or breaches may also </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">result in disruptions to business operations, potentially resulting in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">financial losses; interference with the Fund’s ability to calculate its NAV, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">process shareholder transactions or otherwise transact business with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">shareholders; impediments to trading; violations of applicable privacy </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and other laws; regulatory fines; penalties; third-party claims in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">litigation; reputational damage; reimbursement or other compensation </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">costs; additional compliance and cyber security risk management costs </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and other adverse consequences. In addition, substantial costs may be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">incurred in order to prevent any cyber incidents in the future.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Like with operational risk in general, the Fund has established business </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">continuity plans and risk management systems designed to reduce the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">risks associated with cyber security. However, there are inherent </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">limitations in these plans and systems, including that certain risks may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">not have been identified, in large part because different or unknown </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">threats may emerge in the future. As such, there is no guarantee that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such efforts will succeed, especially because the Fund does not directly </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">control the cyber security systems of issuers in which the Fund may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">invest, trading counterparties or third-party service providers to the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund. Such entities have experienced cyber attacks and other attempts </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to gain unauthorized access to systems from time to time, and there is </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">no guarantee that efforts to prevent or mitigate the effects of such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">attacks or other attempts to gain unauthorized access will be successful. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">There is also a risk that cyber security breaches may not be detected. The </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund and its shareholders may suffer losses as a result of a cyber </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">security breach related to the Fund, its service providers, trading </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">counterparties or the issuers in which the Fund invests.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Non-U.S. Investment Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">PIMCO may invest in real estate located outside of the United States </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and real estate debt issued in, and/or backed by real estate in, countries </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">outside the United States. Non-U.S. real estate and real estate-related </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments involve certain factors not typically associated with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investing in real estate and real estate-related investments in the U.S., </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">including risks relating to (i) currency exchange matters, including </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">fluctuations in the rate of exchange between the U.S. dollar and the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">various non-U.S. currencies in which such investments are denominated, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and costs associated with conversion of investment principal and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">income from one currency into another; (ii) differences in conventions </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">relating to documentation, settlement, corporate actions, stakeholder </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rights and other matters; (iii) differences between U.S. and non-U.S. real </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">estate markets, including potential price volatility in and relative </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">illiquidity of some non-U.S. markets; (iv) the absence of uniform </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">accounting, auditing and financial reporting standards, practices and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">disclosure requirements and differences in government supervision and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">regulation; (v) certain economic, social and political risks, including </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">potential exchange-control regulations, potential restrictions on </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">non-U.S. investment and repatriation of capital, the risks associated with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">political, economic or social instability, including the risk of sovereign </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">defaults, regulatory change, and the possibility of expropriation or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">confiscatory taxation or the imposition of withholding or other taxes on </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">dividends, interest, capital gains, other income or gross sale or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">disposition proceeds, and adverse economic and political developments; </div></div></div> <div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(vi) the possible imposition of non-U.S. taxes on income and gains and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">gross sales or other proceeds recognized with respect to such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments; (vii) differing and potentially less well-developed or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">well-tested corporate laws regarding stakeholder rights, creditors’ rights </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(including the rights of secured parties), fiduciary duties and the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">protection of investors; (viii) different laws and regulations including </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">differences in the legal and regulatory environment or enhanced legal </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and regulatory compliance; (ix) political hostility to investments by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">foreign investors; (x) less publicly available information; (xi) obtaining or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">enforcing a court judgement abroad; (xii) restrictions on foreign </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment in other jurisdictions; and (xiii) difficulties in effecting </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">repatriation of capital. Furthermore, while PIMCO may have the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">capacity, but not the obligation, to mitigate such additional risks, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">including through the utilization of certain foreign exchange hedging </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instruments, there is no guarantee that PIMCO will be successful in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mitigating such risks and in turn may introduce additional risks and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">expenses linked to such efforts.</div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Property Manager Risk</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;"> </div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Investment Manager hires property managers to manage the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">properties and leasing agents to lease vacancies in the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">properties. These property managers may be the Fund’s affiliates or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">partners in joint ventures that the Fund enters into. The property </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">managers have significant decision-making authority with respect to the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">management of the Fund’s properties. The Fund’s ability to direct and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">control how the Fund’s properties are managed on a day-to-day basis </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may be limited because PIMCO engages other parties to perform this </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">function. Thus, the success of the Fund’s business may depend in large </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">part on the ability of the Fund’s property managers to manage the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">day-to-day operations and the ability of the Fund’s leasing agents to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">lease vacancies in the Fund’s properties. Any adversity experienced by, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or problems in the Fund’s relationship with, the Fund’s property </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">managers or leasing agents could adversely impact the operation and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">profitability of the Fund’s properties.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Privacy and Data Security Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The GLBA and other laws limit the disclosure of certain non-public </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">personal information about a consumer to non- affiliated third parties </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and require financial institutions to disclose certain privacy policies and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">practices with respect to information sharing with both affiliates and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">non- affiliated third parties. Many states and a number of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">non-U.S. jurisdictions have enacted privacy and data security laws </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">requiring safeguards on the privacy and security of consumers’ </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">personally identifiable information. Other laws deal with obligations to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">safeguard and dispose of private information in a manner designed to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">avoid its dissemination. Privacy rules adopted by the U.S. Federal Trade </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Commission and SEC implement the GLBA and other requirements and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">govern the disclosure of consumer financial information by certain </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">financial institutions, ranging from banks to private investment funds. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">U.S. platforms following certain models generally are required to have </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">privacy policies that conform to these GLBA and other requirements. In </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">addition, such platforms typically have policies and procedures intended </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to maintain platform participants’ personal information securely and </div></div></div> <div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">dispose of it properly. The Fund generally does not intend to obtain or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">hold borrowers’ non-public personal information, and the Fund has </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">implemented procedures reasonably designed to prevent the disclosure </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of borrowers’ non-public personal information to the Fund. However, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">service providers to the Fund, including their custodians and the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">platforms acting as loan servicers for the Fund, may obtain, hold or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">process such information. The Fund cannot guarantee the security of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">non-public personal information in the possession of such a service </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">provider and cannot guarantee that service providers have been and will </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">continue to comply with the GLBA, other data security and privacy laws </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and any other related regulatory requirements. Violations of the GLBA </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and other laws could subject the Fund to litigation and/or fines, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">penalties or other regulatory action, which, individually or in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">aggregate, could have an adverse effect on the Fund. The Fund may also </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">face regulations related to privacy and data security in the other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">jurisdictions in which the Fund invests.</div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Regulatory Changes Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Financial entities, such as investment companies and investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">advisers, are generally subject to extensive government regulation and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">intervention. Government regulation and/or intervention may change </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the way the Fund is regulated, affect the expenses incurred directly by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund and the value of its investments, and limit and/or preclude the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s ability to achieve its investment objectives. Government </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">regulation may change frequently and may have significant adverse </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">consequences. The Fund and the Investment Manager have historically </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">been eligible for exemptions from certain regulations. However, there is </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">no assurance that the Fund and the Investment Manager will continue </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to be eligible for such exemptions. Actions by government entities may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">also impact certain instruments in which the Fund invests and reduce </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">market liquidity and resiliency.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Moreover, government regulation may have unpredictable and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">unintended effects. Legislative or regulatory actions to address </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">perceived liquidity or other issues in fixed income markets generally, or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in particular markets such as the municipal securities market, may alter </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or impair the Fund’s ability to pursue its investment objectives or utilize </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">certain investment strategies and techniques.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">While there continues to be uncertainty about the full impact of these </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and other regulatory changes, it is the case that the Fund will be subject </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to a more complex regulatory framework, and may incur additional </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">costs to comply with new requirements as well as to monitor for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">compliance in the future. Actions by governmental entities may also </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">impact certain instruments in which the Fund invests and reduce market </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">liquidity and resiliency. For example, the Fund’s investments (including, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">but not limited to, repurchase agreements, collateralized loan </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">obligations and mortgage-backed securities), payment obligations and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">financing terms may rely in some fashion on LIBOR. For more </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">information related to the LIBOR transition, see “Principal Risks of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund - Regulatory Risk – LIBOR”.</div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Risk Retention Investment Risk</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund may invest in risk retention tranches of CMBS or other eligible </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securitizations, if any, which are eligible residual interests held by the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sponsors of such securitizations pursuant to the final rules </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">implementing the credit risk retention requirements of the “U.S. Risk </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Retention Rules.” In the case of CMBS transactions, for example, the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">U.S. Risk Retention Rules permit all or a portion of the retained credit </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">risk associated with certain securitizations (i.e., retained risk) to be held </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">by a “third party purchaser,” such as the Fund, if, among other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">requirements, the third-party purchaser holds its retained interest, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">unhedged, for at least five years following the closing of the CMBS </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">transaction, after which it is entitled to transfer its interest in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securitization to another person that meets the requirements for a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">third-party purchaser. Even after the required holding period has </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">expired, due to the generally illiquid nature of such investments, no </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">assurance can be given as to what, if any, exit strategies will ultimately </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">be available for any given position.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">In addition, there is limited guidance on the application of the final </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">U.S. Risk Retention Rules to specific securitization structures. There can </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">be no assurance that the applicable federal agencies charged with the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">implementation of the final U.S. Risk Retention Rules (the Federal </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Deposit Insurance Corporation, the Comptroller of the Currency, the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Federal Reserve Board, the SEC, the Department of Housing and Urban </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Development, and the Federal Housing Finance Agency) could not take </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">positions in the future that differ from the interpretation of such rules </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">taken or embodied in such securitizations, or that the final U.S. Risk </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Retention Rules will not change.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Furthermore, in situations where the Fund invests in risk retention </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">tranches of securitizations structured by third parties, the Fund may be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">required to execute one or more letters or other agreements, the exact </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">form and nature of which will vary under which it will make certain </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">undertakings designed to ensure such securitization complies with the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">final U.S. Risk Retention Rules. Such Risk Retention Agreements may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">include a variety of representations, warranties, covenants and other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">indemnities, each of which may run to various transaction parties. If the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund breaches any undertakings in any Risk Retention Agreement, it will </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">be exposed to claims by the other parties thereto, including for any </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">losses incurred as a result of such breach, which could be significant </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and exceed the value of the Fund’s investments.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Risks of Investing in Private Real Estate Investment Funds</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">To the extent the Fund invests in private real estate investment funds, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Investment Manager will have limited or no control over the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment decisions made by any such private real estate investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">funds. Investments in private real estate investment funds are illiquid, as </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interests are not listed for trading on any securities exchange and there </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">is little to no secondary market for trading such investments. In addition, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Investment Manager’s ability to withdraw an investment or allocate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">away from the private real estate investment funds, may be constrained </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">by limitations imposed by the private real estate investment funds. The </div></div></div> <div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">illiquid nature of private fund investments may prevent the Fund from </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">actively managing its portfolio away from underperforming private real </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">estate investment funds or in uncertain markets.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Under the terms of the limited partnership agreements or limited </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">liability company operating agreements, as applicable, of many of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">private real estate investment funds in which the Fund may invest, the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund will make commitments to make capital contributions in specified </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">maximum amounts to such private real estate investment funds (each, a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">“Capital Contribution”) based on notices provided by the private real </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">estate investment funds (each, a “Capital Call”). These Capital </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Contributions will be made from time to time generally on an as-needed </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">basis rather than upfront. The Capital Contributions would be used by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the applicable private real estate investment funds to pay specified </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">expenses of the private real estate investment funds and to make </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments in a manner consistent with the investment strategy or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">guidelines established by the applicable private real estate investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">funds. As a result, the Fund, as an investor in a private real estate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment fund, may be required to make a Capital Contribution to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such private real estate investment fund without the benefit of an </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">extensive notice period after a Capital Call and without regard to the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s current financial condition and availability of cash to make such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Capital Contribution.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The limited partnership agreement or limited liability company operating </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">agreement, as applicable, of the applicable private real estate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment funds may contain detailed provisions regarding the failure </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of an investor in such private real estate investment funds to honor its </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Capital Contribution obligation. The consequences that may be imposed </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">upon a defaulting investor in such private real estate investment funds </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">include interest on overdue amounts, a loss of voting rights in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">private real estate investment funds as long as the default is continuing, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and (in many cases) a forced sale or forfeiture of the defaulting </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investor’s interest in the private real estate investment funds in favor of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the other investors in such private real estate investment funds.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The private real estate investment funds will not be registered as </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment companies under the 1940 Act and, therefore, the Fund will </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">not be able to avail itself of the protections of the 1940 Act with respect </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to the private real estate investment funds, including certain corporate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">governance protections, such as the requirement to have a majority </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Independent Directors serving on the board, statutory protections </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">against self-dealings and joint transactions by the institutional asset </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">managers and their affiliates, and leverage limitations. Furthermore, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">some of the institutional asset managers for the private real estate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment funds may not be registered under the Investment Advisers </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Act of 1940 (“Advisers Act”), meaning that the Fund will not be able to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rely on the statutory protections of the Advisers Act.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The valuation of the Fund’s investments in private real estate investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">funds will be determined by the institutional asset managers of those </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">private real estate investment funds, which valuation may not be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">accurate or reliable. While the valuation of the Fund’s publicly traded </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities are more readily ascertainable, the Fund’s ownership interests </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in private real estate investment funds are not publicly traded and the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund will depend on appraisers, service providers, and the institutional </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">asset manager to a private real estate investment fund to provide a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">valuation, or assistance with a valuation, of those investments. Any such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">valuation is a subjective analysis of the fair market value of an asset and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">requires the use of techniques that are costly and time-consuming and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">ultimately provide no more than an estimate of value. Moreover, the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">valuation of the Fund’s investment in a private real estate investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">funds, as provided by an institutional asset manager for its assets as of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">a specific date, may vary from the actual sales price of its assets or any </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">secondary market value price for the underlying fund’s interest, if such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments were sold to a third party.</div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Risks Related to the Fund’s REIT Status</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;"> </div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">If the Fund does not qualify as a REIT, the Fund will be subject to tax as </div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">a regular corporation and could face a substantial tax liability.</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund expects to operate so as to qualify as a REIT under the Code. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">However, qualification as a REIT involves the application of highly </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">technical and complex Code provisions for which only a limited number </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of judicial or administrative interpretations exist. Notwithstanding the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">availability of cure provisions in the Code, various compliance </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">requirements could be failed and could jeopardize the Fund’s REIT </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">status. Furthermore, new tax legislation, administrative guidance or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">court decisions, in each instance potentially with retroactive effect, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">could make it more difficult or impossible for the Fund to qualify as a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">REIT. If the Fund fails to qualify as a REIT in any tax year, then:</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund would be taxed as a regular domestic corporation, which </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">under current laws, among other things, means being unable to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">deduct distributions to Common Shareholders in computing </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">taxable income and being subject to federal income tax on the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s taxable income at regular corporate income tax rates;</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">any resulting tax liability could be substantial and could have a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">material adverse effect on the Fund’s book value;</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">unless the Fund were entitled to relief under applicable statutory </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">provisions, the Fund would be required to pay taxes, and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">therefore, the Fund’s cash available for distribution to Common </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Shareholders would be reduced for each of the years during </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which the Fund did not qualify as a REIT and for which the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">had taxable income; and</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund generally would not be eligible to requalify as a REIT for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the subsequent four full taxable years.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">To maintain the Fund’s REIT status, the Fund may have to borrow funds </div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">on a short-term basis during unfavorable market conditions.</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">To qualify as a REIT, the Fund generally must distribute annually to the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s Common Shareholders a minimum of 90% of the Fund’s net </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">taxable income, determined without regard to the dividends-paid </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">deduction and excluding net capital gains. The Fund will be subject to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">regular corporate income taxes on any undistributed REIT taxable </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">income each year. Additionally, the Fund will be subject to a 4% </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">nondeductible excise tax on any amount by which distributions paid by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund in any calendar year are less than the sum of 85% of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s ordinary income, 95% of the Fund’s capital gain net income and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">100% of the Fund’s undistributed income from previous years. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Payments to the Fund’s Common Shareholders under the Fund’s share </div></div></div> <div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">repurchase plan will not be taken into account for purposes of these </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">distribution requirements. If the Fund does not have sufficient cash to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">make distributions necessary to preserve the Fund’s REIT status for any </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">year or to avoid taxation, the Fund may be forced to borrow funds or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sell assets even if the market conditions at that time are not favorable </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">for these borrowings or sales. These options could increase the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">costs or reduce the Fund’s equity.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">Compliance with REIT requirements may cause the Fund to forego </div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">otherwise attractive opportunities, which may hinder or delay the Fund’s </div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">ability to meet the Fund’s investment objectives and reduce overall </div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">return for the Fund's Common Shareholders.</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">To qualify as a REIT, the Fund is required at all times to satisfy tests </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">relating to, among other things, the sources of the Fund’s income, the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">nature and diversification of the Fund’s assets, the ownership of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s stock and the amounts the Fund distributes to Fund’s Common </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Shareholders. Compliance with the REIT requirements may impair the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s ability to operate solely on the basis of maximizing profits. For </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">example, the Fund may be required to make distributions to Common </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Shareholders at disadvantageous times or when the Fund does not have </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">funds readily available for distribution.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">Compliance with REIT requirements may force the Fund to liquidate or </div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">restructure otherwise attractive investments.</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">To qualify as a REIT, at the end of each calendar quarter, at least 75% of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the value of the Fund’s assets must consist of cash, cash items, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">government securities and qualified real estate assets. The remainder of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund’s investments in securities (other than qualified real estate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">assets and government securities) generally cannot include more than </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">10% of the voting securities (other than securities that qualify for the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">straight debt safe harbor) of any one issuer or more than 10% of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">value of the outstanding securities of more than any one issuer unless </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">PIMCO and such issuer jointly elect for such issuer to be treated as a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">“taxable REIT subsidiary” under the Code. Debt will generally meet the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">“straight debt” safe harbor if the debt is a written unconditional </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">promise to pay on demand or on a specified date a certain sum of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">money, the debt is not convertible, directly or indirectly, into stock, and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the interest rate and the interest payment dates of the debt are not </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">contingent on the profits, the borrower’s discretion, or similar factors. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Additionally, no more than 5% of the value of the Fund’s assets (other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">than government securities and qualified real estate assets) can consist </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of the securities of any one issuer, and no more than 20% of the value </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of the Fund’s assets may be represented by securities of one or more </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">taxable REIT subsidiaries. If the Fund fails to comply with these </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">requirements at the end of any calendar quarter, the Fund must dispose </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of a portion of the Fund’s assets within 30 days after the end of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">calendar quarter or qualify for certain statutory relief provisions in order </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to avoid losing the Fund’s REIT qualification and suffering adverse tax </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">consequences. In order to satisfy these requirements and maintain the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s qualification as a REIT, the Fund may be forced to liquidate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">assets from the Fund’s portfolio or not make otherwise attractive </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments. These actions could have the effect of reducing the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">income and amounts available for distribution to the Fund’s Common </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Shareholders.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">The Fund’s Declaration of Trust does not permit any person or group to </div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">own more than 9.8% in value or number of shares, whichever is more </div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">restrictive, of the Fund’s outstanding Common Shares or of the Fund’s </div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">outstanding capital stock of all classes or series, and attempts to acquire </div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">the Fund’s Common Shares or the Fund’s capital stock of all other </div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">classes or series in excess of these 9.8% limits would not be effective </div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">without an exemption (prospectively or retroactively) from these limits </div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">by the Fund’s Board of Trustees.</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">For the Fund to qualify as a REIT under the Code, not more than 50% of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the value of the Fund’s outstanding Common Shares may be owned, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">directly or indirectly, by five or fewer individuals (including certain </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">entities treated as individuals for this purpose) during the last half of a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">taxable year. For the purpose of assisting the Fund’s qualification as a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">REIT for U.S. federal income tax purposes, among other purposes, the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s Declaration of Trust prohibits beneficial or constructive </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">ownership by any person or group of more than 9.8%, in value or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">number of shares, whichever is more restrictive, of the outstanding </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">shares of the Fund’s outstanding Common Shares, or 9.8% in value or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">number of shares, whichever is more restrictive, of the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">outstanding capital stock of all classes or series, which PIMCO refers to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">as the “Ownership Limit.” The constructive ownership rules under the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Code and the Fund’s Declaration of Trust are complex and may cause </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">shares of the outstanding Common Shares owned by a group of related </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">persons to be deemed to be constructively owned by one person. As a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">result, the acquisition of less than 9.8% of the Fund’s outstanding </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Common Shares or the Fund’s capital stock by a person could cause </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">another person to constructively own in excess of 9.8% of the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">outstanding Common Shares or the Fund’s capital stock, respectively, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and thus violate the Ownership Limit. There can be no assurance that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund’s board of trustees, as permitted in the Declaration of Trust, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">will not decrease this Ownership Limit in the future. Any attempt to own </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or transfer shares of the Fund’s Common Shares or capital stock in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">excess of the Ownership Limit without the consent of the Fund’s board </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of trustees will result in the transfer being void.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Ownership Limit may have the effect of precluding a change in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">control of the Fund by a third party, even if such change in control </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">would be in the best interests of the Fund’s Common Shareholders or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">would result in receipt of a premium to the price of the Fund’s Common </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Shares (and even if such change in control would not reasonably </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">jeopardize the Fund’s REIT status). The exemptions to the Ownership </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Limit granted to date may limit the Fund’s Board’s power to increase the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Ownership Limit or grant further exemptions in the future.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">The Fund’s Board of Trustees is authorized to revoke the Fund’s REIT </div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">election without shareholder approval, which may cause adverse </div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">consequences to the Fund’s shareholders.</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund’s Declaration of Trust authorizes the Fund’s Board of Trustees </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to revoke or otherwise terminate the Fund’s REIT election, without the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">approval of the Fund’s shareholders, if it determines that changes to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">U.S. federal income tax laws and regulations or other considerations </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mean it is no longer in the Fund’s best interests to qualify as a REIT. The </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s Board of Trustees has fiduciary duties to us and the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">shareholders and could only cause such changes in the Fund’s tax </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">treatment if it determines in good faith that such changes are in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s best interests and in the best interests of the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">shareholders. In this event, the Fund would become subject to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">U.S. federal income tax on the Fund’s taxable income and the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">would no longer be required to distribute most of the Fund’s net income </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to the Fund’s shareholders, which may cause a reduction in the total </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">return to the Fund’s shareholders.</div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Tax Risks of Investing in the Fund</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">Non-U.S. holders may be subject to U.S. federal income tax upon their </div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">disposition of shares of the Fund’s Common Shares or upon their receipt </div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">of certain distributions from PIMCO.</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">In addition to any potential withholding tax on ordinary dividends, a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">non-U.S. holder (as such term is defined below under “Certain </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">U.S. Federal Income Tax Considerations—Taxation of U.S. Holders of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s Common Shares”), other than a “qualified shareholder” or a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">“qualified foreign pension fund,” that disposes of a “U.S. real property </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest” (“USRPI”) (which includes shares of stock of a U.S. corporation </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">whose assets consist principally of USRPIs), is generally subject to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">U.S. federal income tax under the Foreign Investment in Real Property </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Tax Act of 1980, as amended (“FIRPTA”), on the amount received from </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such disposition. Such tax does not apply, however, to the disposition of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">stock in a REIT that is “domestically controlled.” Generally, a REIT is </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">domestically controlled if less than 50% of its stock, by value, has been </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">owned directly or indirectly by non-U.S. persons during a continuous </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">five-year period ending on the date of disposition or, if shorter, during </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the entire period of the REIT’s existence. The Fund cannot assure </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Common Shareholders that it will qualify as a domestically controlled </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">REIT. If the Fund were to fail to so qualify, amounts received by a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">non-U.S. holder on certain dispositions of the Fund’s Common Shares </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(including a redemption) would be subject to tax under FIRPTA, unless </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(i) the Fund’s Common Shares were regularly traded on an established </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities market and (ii) the non-U.S. holder did not, at any time during </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">a specified testing period, hold more than 10% of the Fund’s Common </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Shares. See “Certain U.S. Federal Income Tax Considerations—Taxation </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of Non-U.S. Holders of the Fund’s Common Shares—Sales of the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Common Shares.”</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">A non-U.S. holder other than a “qualified shareholder” or a “qualified </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">foreign pension fund,” that receives a distribution from a REIT that is </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">attributable to gains from the disposition of a USRPI as described </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">above, including in connection with a repurchase of the Fund’s Common </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Shares, is generally subject to U.S. federal income tax under FIRPTA to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the extent such distribution is attributable to gains from such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">disposition, regardless of whether the difference between the fair </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">market value and the tax basis of the USRPI giving rise to such gains is </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">attributable to periods prior to or during such non-U.S. holder’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">ownership of the Fund’s Common Shares. In addition, a repurchase of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund’s Common Shares, to the extent not treated as a sale or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">exchange, may be subject to withholding as an ordinary dividend. See </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">“Certain U.S. Federal Income Tax Considerations—Taxation of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Non-U.S. Holders of the Fund’s Common Shares—Distributions, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and—Repurchases of the Fund’s Common Shares.”</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div> <div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">PIMCO seeks to act in the best interests of the Fund as a whole and not </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in consideration of the particular tax consequences to any specific </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">holder of the Fund’s Common Shares. Potential non-U.S. holders should </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">inform themselves as to the U.S. tax consequences, and the tax </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">consequences within the countries of their citizenship, residence, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">domicile, and place of business, with respect to the purchase, ownership </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and disposition of shares of the Fund’s Common Shares.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">Investments outside the United States may subject the Fund to </div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">additional taxes and could present additional complications to the </div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">Fund’s ability to satisfy the REIT qualification requirements.</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Non-U.S. investments may subject the Fund to various non-U.S. tax </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">liabilities, including withholding taxes. In addition, operating in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">functional currencies other than the U.S. dollar and in environments in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which real estate transactions are typically structured differently than </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">they are in the United States or are subject to different legal rules may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">present complications to the Fund’s ability to structure </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">non-U.S. investments in a manner that enables the Fund to satisfy the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">REIT qualification requirements.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">The Fund may incur tax liabilities that would reduce the Fund’s cash </div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">available for distribution to shareholders.</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Even if the Fund qualifies and maintains the Fund’s status as a REIT, the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund may become subject to U.S. federal income taxes and related state </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and local taxes. For example, net income from the sale of properties that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">are “dealer” properties sold by a REIT (a “prohibited transaction” under </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Code) will be subject to a 100% tax. The Fund may not make </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sufficient distributions to avoid excise taxes applicable to REITs. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Similarly, if the Fund were to fail an income test (and did not lose the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s REIT status because such failure was due to reasonable cause </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and not willful neglect) the Fund would be subject to tax on the income </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">that does not meet the income test requirements. To qualify as a REIT, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund generally must distribute annually to the Fund’s Common </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Shareholders a minimum of 90% of the Fund’s net taxable income, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">determined without regard to the dividends-paid deduction and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">excluding net capital gains. If the Fund does not have sufficient cash to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">make distributions necessary to preserve the Fund’s REIT status for any </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">year or to avoid taxation, the Fund may be forced to borrow funds or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sell assets even if the market conditions at that time are not favorable </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">for these borrowings or sales. These options could increase the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">costs or reduce the Fund’s equity. The Fund also may decide to retain </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">net capital gains the Fund earns from the sale or other disposition of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s investments and pay income tax directly on such income. In that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">event, the Fund’s shareholders would be treated as if they earned that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">income and paid the tax on it directly. However, shareholders that are </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">tax-exempt, such as charities or qualified pension plans, would have no </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">benefit from their deemed payment of such tax liability unless they file </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">U.S. federal income tax returns and thereon seek a refund of such tax. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund also may be subject to state and local taxes on the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">income, gross receipts or property, including franchise, payroll, mortgage </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">recording and transfer taxes, either directly or at the level of the other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">companies through which the Fund indirectly owns assets, such as the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s taxable REIT subsidiaries, which are subject to full U.S. federal, </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">state, local and foreign corporate-level income taxes. Any taxes the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">pays directly or indirectly will reduce the Fund’s cash available for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">distribution to shareholders.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">There may be current tax liability on distributions reinvested in the </div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">Fund’s Common Shares.</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">If a shareholder participates in the Fund’s distribution reinvestment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">plan, that shareholder will be deemed to have received, and for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">U.S. federal income tax purposes will be taxed on, the amount </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">reinvested in shares of the Fund’s Common Shares to the extent the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">amount reinvested was not a tax-free return of capital. Therefore, unless </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the shareholder is a tax-exempt entity, the shareholder may be forced to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">use funds from other sources to pay any tax liability on the reinvested </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">dividends.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">Generally, ordinary dividends payable by REITs do not qualify for </div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">reduced U.S. federal income tax rates.</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Currently, the maximum tax rate applicable to qualified dividend income </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">payable to certain non-corporate U.S. Common Shareholders is 20%. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Dividends payable by REITs, however, generally are not eligible for the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">reduced rate. Although this does not adversely affect the taxation of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">REITs or dividends payable by REITs, the more favorable rates applicable </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to regular corporate qualified dividends could cause certain </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">non-corporate investors to perceive investments in REITs to be relatively </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">less attractive than investments in the stocks of non-REIT corporations </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">that pay dividends, which could adversely affect the value of the shares </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of REITs, including the Fund’s Common Shares. However, under current </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">law, individual taxpayers may be entitled to claim (through 2025) a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">deduction in determining their taxable income of 20% of ordinary REIT </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">dividends (dividends other than capital gain dividends and dividends </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">attributable to certain qualified dividend income received by the Fund), </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which temporarily reduces the effective tax rate on such dividends. See </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">“Certain U.S. Federal Income Tax Considerations—Taxation of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">U.S. Holders of the Fund’s Common Shares—Distributions Generally.” </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Shareholders are urged to consult with a tax advisor regarding the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">effective tax rate with respect to REIT dividends.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">The Fund may be subject to adverse legislative or regulatory tax </div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">changes that could increase the Fund’s tax liability, reduce the Fund’s </div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">operating flexibility and reduce the price of the Fund’s Common Shares.</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">In recent years, numerous legislative, judicial and administrative </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">changes have been made in the provisions of U.S. federal income tax </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">laws applicable to investments similar to an investment in shares of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s Common Shares. Additional changes to the tax laws are likely to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">continue to occur, and PIMCO cannot assure shareholders that any such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">changes will not adversely affect the taxation of the Fund’s Common </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Shareholders. Any such changes could have an adverse effect on an </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment in the Fund’s shares or on the market value or the resale </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">potential of the Fund’s assets. Shareholders are urged to consult with a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">tax advisor with respect to the impact of recent legislation on your </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment in the Fund’s shares and the status of legislative, regulatory </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or administrative developments and proposals and their potential effect </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">on an investment in the Fund’s shares. Although REITs generally receive </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">certain tax advantages compared to entities taxed as regular </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">corporations, it is possible that future legislation would result in a REIT </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">having fewer tax advantages, and it could become more advantageous </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">for a company that invests in real estate to elect to be treated for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">U.S. federal income tax purposes as a corporation. As a result, the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s Declaration of Trust authorizes the Fund’s Board of Trustees to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">revoke or otherwise terminate the Fund’s REIT election, without the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">approval of the Fund’s Common Shareholders, if it determines that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">changes to U.S. federal income tax laws and regulations or other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">considerations mean it is no longer in the Fund’s best interests to qualify </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">as a REIT. Prospective investors should consult their own tax advisors </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">regarding changes in tax laws.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">The failure of a mezzanine loan to qualify as a real estate asset could </div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">adversely affect the Fund’s ability to qualify as a REIT.</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">PIMCO may acquire mezzanine loans, for which the United States </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Internal Revenue Service (the “IRS”) has provided a safe harbor but not </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rules of substantive law. Pursuant to the safe harbor, if a mezzanine </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">loan meets certain requirements, it will be treated by the IRS as a real </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">estate asset for purposes of the REIT asset tests, and interest derived </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">from the mezzanine loan will be treated as qualifying mortgage interest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">for purposes of the REIT 75% income test. PIMCO may acquire </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mezzanine loans that do not meet all of the requirements of this safe </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">harbor. In the event the Fund owns a mezzanine loan that does not </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">meet the safe harbor, the IRS could challenge such loan’s treatment as a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">real estate asset for purposes of the REIT asset and income tests and, if </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such a challenge were sustained, the Fund could fail to qualify as a REIT.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">If the Fund’s operating partnership failed to qualify as a partnership or is </div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">not otherwise disregarded for U.S. federal income tax purposes, the </div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">Fund would cease to qualify as a REIT.</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">If the IRS were to successfully challenge the status of the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">operating partnership as a partnership or disregarded entity for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">U.S. federal income tax purposes, it would be taxable as a corporation. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">In the event that this occurs, it would reduce the amount of distributions </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">that the Fund’s operating partnership could make to the Fund. This </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">would also result in the Fund’s failing to qualify as a REIT and becoming </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">subject to a corporate-level tax on the Fund’s income, which would </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">substantially reduce the Fund’s cash available to pay distributions and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the yield on your investment.</div></div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Investment and Market Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The market price of securities owned by the Fund may go up or down, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sometimes rapidly or unpredictably. Securities may decline in value due </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to factors affecting securities or real estate markets generally or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">particular industries or companies represented in the securities or real </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">estate markets. The value of a security may decline due to general </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">market conditions that are not specifically related to a particular </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">company, such as real or perceived adverse economic conditions, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">changes in the general outlook for corporate earnings, changes in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest or currency rates, adverse changes to credit markets or adverse </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investor sentiment generally. The value of a security may also decline </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">due to factors that affect a particular industry or industries, such as </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">labor shortages or increased production costs and competitive </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">conditions within an industry. Conversely, a change in financial </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">condition or other event affecting a single issuer may adversely impact </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities markets as a whole. During a general downturn in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities markets, multiple asset classes may decline in value </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">simultaneously even if the performance of those asset classes is not </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">otherwise historically correlated. Investments may also be negatively </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">impacted by market disruptions and by attempts by other market </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">participants to manipulate the prices of particular investments. Equity </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities generally have greater price volatility than fixed income </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities. Credit ratings downgrades may also negatively affect </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities held by the Fund. Even when markets perform well, there is no </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">assurance that the investments held by the Fund will increase in value </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">along with the broader market.</div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">In addition, market risk includes the risk that geopolitical and other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">events will disrupt the economy on a national or global level. For </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instance, war or military conflict, terrorism, social unrest, recessions, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">supply chain disruptions, market manipulation, government defaults, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">government shutdowns, political changes, diplomatic developments or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the imposition of sanctions and other similar measures, public health </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">emergencies (such as the spread of infectious diseases, pandemics and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">epidemics), natural/environmental disasters, climate-change and climate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">related events can all negatively impact the securities markets, which </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">could cause the Fund to lose value. These events could reduce consumer </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">demand or economic output, result in market closures, changes in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest rates, inflation/deflation, travel restrictions or quarantines, and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">significantly adversely impact the economy.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">As computing technology and data analytics continually advance there </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">has been an increasing trend towards machine driven and artificially </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">intelligent trading systems, particularly providing such systems with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">increasing levels of autonomy in trading decisions. Regulators of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">financial markets have become increasingly focused on the potential </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">impact of artificial intelligence on investment activities and may issue </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">regulations that are intended to affect the use of artificial technology in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">trading activities. Any such regulations may not have the intended affect </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">on financial markets. Moreover, advancements in artificial intelligence </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and other technologies may suffer from the introduction of errors, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">defects or security vulnerabilities which can go undetected. The </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">potential speed of such trading technology may exacerbate the impact </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of any such flaws, particularly where such flaws are exploited by other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">artificially intelligent systems and may act to impair or prevent the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">intervention of a human control.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The current contentious domestic political environment, as well as </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">political and diplomatic events within the United States and abroad, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such as presidential elections in the U.S. or abroad or the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">U.S. government’s inability at times to agree on a long-term budget and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">deficit reduction plan, has in the past resulted, and may in the future </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">result, in a government shutdown or otherwise adversely affect the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">U.S. regulatory landscape, the general market environment and/or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investor sentiment, which could have an adverse impact on the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments and operations. Additional and/or prolonged U.S. federal </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">government shutdowns may affect investor and consumer confidence </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and may adversely impact financial markets and the broader economy, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">perhaps suddenly and to a significant degree. Governmental and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">quasi-governmental authorities and regulators throughout the world </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">have previously responded to serious economic disruptions with a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">variety of significant fiscal and monetary policy changes. The reversal of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">any fiscal and/or monetary policies or the ineffectiveness of these </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">policies, could increase volatility in securities markets, which could </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">adversely affect the Fund’s investments. Any market disruptions could </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">also prevent the Fund from executing advantageous investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">decisions in a timely manner. Funds that have focused their investments </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in a region enduring geopolitical market disruption will face higher risks </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of loss. Thus, investors should closely monitor current market conditions </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to determine whether the Fund meets their individual financial needs </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and tolerance for risk.</div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Recently, there have been inflationary price movements. As such, fixed </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">income securities markets may experience heightened levels of interest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rate, volatility and liquidity risk. As discussed more under “Interest Rate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Risk,” the Federal Reserve has raised interest rates from historically low </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">levels. Any additional interest rate increases in the future could cause </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the value of any fund, such as the Fund, that invests in fixed income </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities to decrease.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Although interest rates have significantly increased since 2022 through </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the date of this prospectus, the prices of real estate-related assets </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">generally have not decreased as much as may be expected based on </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">historical correlations between interest rates and prices of real </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">estate-related assets. This presents an increased risk of a correction or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">severe downturn in real estate-related asset prices, which could </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">adversely impact the value of other investments as well (such as loans, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securitized debt and other fixed income securities). This risk is </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">particularly present with respect to commercial real estate-related asset </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">prices, and the value of other investments with a connection to the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">commercial real estate sector. As examples of the current risks faced by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">real estate-related assets: tenant vacancy rates, tenant turnover and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">tenant concentration have increased; owners of real estate have faced </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">headwinds, delinquencies and difficulties in collecting rents and other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">payments (which increases the risk of owners being unable to pay or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">otherwise defaulting on their own borrowings and obligations); </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">property values have declined; inflation, upkeep costs and other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">expenses have increased; and rents have declined for many properties.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Exchanges and securities markets may close early, close late or issue </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">trading halts on specific securities, which may result in, among other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">things, the Fund being unable to buy or sell certain securities or financial </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instruments at an advantageous time or accurately price its portfolio </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Distribution Rate Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund's distribution rates may be affected by numerous factors, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">including but not limited to changes in realized and projected market </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">returns, fluctuations in market interest rates, Fund performance and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other factors. The Fund’s distributions may be comprised of a return of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">capital. In general terms, a return of capital would occur where a Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">distribution (or portion thereof) represents a return of a portion of your </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment, rather than net income or capital gains generated from your </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment during a particular period. There can be no assurance that a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">change in market conditions or other factors will not result in a change </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in the Fund’s distribution rate or that the rate will be sustainable in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">future. See “Distributions” for a description of return of capital and its </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">impacts. There can be no assurance that a change in market conditions </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or other factors will not result in a change in a Fund’s distribution rate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or that the rate will be sustainable in the future. For instance, during </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">periods of low or declining interest rates, the Fund’s distributable </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">income and dividend levels may decline for many reasons. For example, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund may have to deploy uninvested assets (whether from sales of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund shares, proceeds from matured, traded or called debt obligations </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or other sources) in new, lower yielding instruments. Additionally, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">payments from certain instruments that may be held by the Fund (such </div></div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">as variable and floating rate securities) may be negatively impacted by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">declining interest rates, which may also lead to a decline in the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">distributable income and dividend levels.</div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Liquidity Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">To the extent consistent with the applicable liquidity requirements for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interval funds under Rule 23c-3 under the 1940 Act, the Fund may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">invest without limit in illiquid investments. Liquidity risk exists when </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">particular investments are difficult to purchase or sell at the time that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund would like or at the price that the Fund believes such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments are currently worth. Many of the Fund’s investments may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">be illiquid. The term “illiquid investments” for this purpose means any </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment that the Fund reasonably expects cannot be sold or disposed </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of in current market conditions in seven calendar days or less without </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the sale or disposition significantly changing the market value of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment. Illiquid investments may become harder to value, especially </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in changing markets. The Fund’s investments in illiquid investments may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">reduce the returns of the Fund because it may be unable to sell the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">illiquid investments at an advantageous time or price or possibly require </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund to dispose of other investments at unfavorable times or prices </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in order to satisfy its obligations, which could prevent the Fund from </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">taking advantage of other investment opportunities. Illiquidity can be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">caused by, among other things, a drop in overall market trading volume, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">an inability to find a willing buyer, or legal restrictions on the securities’ </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">resale. Additionally, the market for certain investments may become </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">illiquid under adverse market or economic conditions independent of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">any specific adverse changes in the conditions of a particular issuer. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Bond markets have consistently grown over the past three decades </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">while the capacity for traditional dealer counterparties to engage in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">fixed income trading has not kept pace and in some cases has </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">decreased. As a result, dealer inventories of corporate bonds, which </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">provide a core indication of the ability of financial intermediaries to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">“make markets,” are at or near historic lows in relation to market size. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Because market makers seek to provide stability to a market through </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">their intermediary services, the significant reduction in dealer inventories </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">could potentially lead to decreased liquidity and increased volatility in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the fixed income markets. Such issues may be exacerbated during </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">periods of economic uncertainty. In such cases, the Fund, due to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">regulatory limitations on investments in illiquid investments and the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">difficulty in purchasing and selling such securities or instruments, may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">be unable to achieve its desired level of exposure to a certain sector. To </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the extent that the Fund’s principal investment strategies involve </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities of companies with smaller market capitalizations, foreign </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(non-U.S.) securities, Rule 144A securities, senior loans, illiquid sectors </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of fixed income securities, derivatives or securities with substantial </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">market and/or credit risk, the Fund will tend to have the greatest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">exposure to liquidity risk. Further, fixed income securities with longer </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">durations until maturity face heightened levels of liquidity risk as </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">compared to fixed income securities with shorter durations until </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">maturity. The risks associated with illiquid instruments may be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">particularly acute in situations in which the Fund’s operations require </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">cash (such as in connection with repurchase offers) and could result in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund borrowing to meet its short-term needs or incurring losses on </div></div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the sale of illiquid instruments. It may also be the case that other market </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">participants may be attempting to liquidate fixed income holdings at the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">same time as the Fund, causing increased supply in the market and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">contributing to liquidity risk and downward pricing pressure. Liquidity </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">risk also refers to the risk that the Fund may be required to hold </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">additional cash or sell other investments in order to obtain cash to close </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">out derivatives or meet the liquidity demands that derivatives can create </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to make payments of margin, collateral, or settlement payments to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">counterparties. The Fund may have to sell a security at a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">disadvantageous time or price to meet such obligations. The current </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">direction of governments and regulators may have the effect of reducing </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">market liquidity, market resiliency and money supply, such as through </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">higher rates, tighter financial regulations and proposals related to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">open-end fund liquidity that may prevent mutual funds and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">exchange-traded funds from participating in certain markets.</div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Management Risk</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;"> </div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund is subject to management risk because it is an actively </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">managed investment portfolio. PIMCO will apply investment techniques </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and risk analysis in making investment decisions for the Fund. There can </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">be no guarantee that these decisions will produce the desired results or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">that the due diligence conducted by PIMCO and individual portfolio </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">managers will expose all material risks associated with an investment. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Additionally, PIMCO and individual portfolio managers may not be able </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to identify suitable investment opportunities and may face competition </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">from other investment managers when identifying and consummating </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">certain investments, or may determine that certain factors are more </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">significant than others. Certain securities or other instruments in which </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund seeks to invest may not be available in the quantities desired, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">including in circumstances where other funds for which PIMCO acts as </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment adviser are seeking to invest in the same or similar securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or instruments. In addition, regulatory restrictions, actual or potential </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">conflicts of interest or other considerations may cause PIMCO to restrict </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or prohibit participation in certain investments. In such circumstances, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">PIMCO may determine to purchase other securities or instruments as </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">substitutes. Such substitute securities or instruments may not perform as </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">intended, which could result in losses to the Fund. To the extent the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund employs strategies targeting perceived pricing inefficiencies, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">arbitrage strategies or similar strategies, it is subject to the risk that the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">pricing or valuation of the securities and instruments involved in such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">strategies may change unexpectedly, which may result in reduced </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">returns or losses to the Fund. The Fund is also subject to the risk that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">deficiencies in the internal systems or controls of PIMCO or another </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">service provider will cause losses for the Fund or hinder Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">operations. For example, trading delays or errors (both human and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">systemic) could prevent the Fund from purchasing a security expected to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">appreciate in value. Please refer to “Portfolio Managers – Conflicts of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Interest” in the SAI for further information. Additionally, legislative, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">regulatory, or tax restrictions, policies or developments may affect the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment techniques available to PIMCO in connection with managing </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund, may cause PIMCO to restrict or prohibit participation in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">certain investments and may also adversely affect the ability of the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to achieve its investment objectives. There also can be no assurance that </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">all of the personnel of PIMCO will continue to be associated with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">PIMCO for any length of time. The loss of the services of one or more key </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">employees of PIMCO could have an adverse impact on the Fund’s ability </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to realize its investment objectives.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">In addition, the Fund may rely on various third-party sources to calculate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">its NAV. As a result, the Fund is subject to certain operational risks </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">associated with reliance on service providers and service providers’ data </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sources. In particular, errors or systems failures and other technological </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">issues may adversely impact the Fund’s calculations of its NAV, and such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">NAV calculation issues may result in inaccurately calculated NAVs, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">delays in NAV calculation and/or the inability to calculate NAVs over </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">extended periods. The Fund may be unable to recover any losses </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">associated with such failures.</div></div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Delay in Use of Proceeds Risk</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;"> </div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Although the Fund currently intends to invest the proceeds from any </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sale of the Common Shares offered hereby as soon as practicable, such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments may be delayed if suitable investments are unavailable at </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the time. Pending investment, the net proceeds of the offering may be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">invested in permitted temporary investments, which include short-term </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">U.S. government securities, bank certificates of deposit and other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">short-term liquid investments. The rate of return on these investments, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which affects the amount of cash available to make distributions, may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">be less than the return obtainable from the type of investments in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">real estate industry the Fund seeks to originate or acquire. Such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments may also make it more difficult for the Fund to qualify as a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">REIT. Therefore, delays the Fund encounters in the selection, due </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">diligence and origination or acquisition of investments would likely limit </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">its ability to pay distributions and lower overall returns. In the event the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund is unable to find suitable investments such temporary investments </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may be maintained for longer periods which would be dilutive to overall </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment returns. This could cause a substantial delay in the time it </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">takes for a shareholder’s investment to realize its full potential return.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Best Efforts Offering</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;"> </div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">This offering is being made on a “best efforts” basis, meaning the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Distributor and broker-dealers participating in the offering are only </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">required to use their best efforts to sell the Fund’s shares and have no </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">firm commitment or obligation to sell any of the shares. In the event of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the liquidation, dissolution or winding up of the Fund, Common </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Shareholders are entitled to receive the then-current NAV per share of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the assets legally available for distribution to the Fund’s Common </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Shareholders, after payment of or adequate provision for all of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s known debts and liabilities, including any outstanding debt </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities or other borrowings and any interest thereon. These rights are </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">subject to the preferential rights of outstanding shares of any other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">class or series of the Fund’s shares, including any Preferred Shares.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Competition Risk</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;"> </div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Identifying, completing and realizing attractive portfolio investments is </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">competitive and involves a high degree of uncertainty. The Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">profitability depends, in large part, on its ability to acquire target assets </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">at attractive prices. In acquiring its target assets, the Fund will compete </div></div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">with a variety of institutional investors, including specialty finance </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">companies, public and private funds (including other funds managed by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">PIMCO), REITs, commercial and investment banks, commercial finance </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and insurance companies and other financial institutions. Also, as a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">result of this competition, desirable investments in the Fund’s target </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">assets may be limited in the future and the Fund may not be able to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">take advantage of attractive investment opportunities from time to time, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">as the Fund can provide no assurance that it will be able to identify and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">make investments that are consistent with its investment objectives. The </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund cannot assure you that the competitive pressures it faces will not </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">have a material adverse effect on its business, financial condition and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">results of operations or the Fund’s ability to locate, consummate and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">exit investments that satisfy its investment objectives.</div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Non-Diversification Risk</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;"> </div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund is “non-diversified,” which means that the Fund may invest a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">greater percentage of its assets in the securities of a smaller number of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">issuers than a diversified fund. A fund that invests in a relatively smaller </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">number of issuers is more susceptible to risks associated with a single </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">economic, political or regulatory occurrence than a diversified fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">might be. Similarly, the Fund may be subject to increased economic, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">business or political risk to the extent that it invests a substantial </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">portion of its assets in a particular currency, in a group of related </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">industries, in a particular issuer, in the bonds of similar projects or in a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">narrowly defined geographic area outside the U.S. Notwithstanding the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s status as a “non-diversified” investment company under the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">1940 Act, the Fund intends to qualify as a REIT accorded special tax </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">treatment under the Code, which imposes its own diversification </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">requirements.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Illiquid Investment Risk</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;"> </div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Many of the Fund’s investments will be illiquid, including the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">private commercial real estate investments. A variety of factors could </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">make it difficult for the Fund to dispose of any of its illiquid assets on </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">acceptable terms even if a disposition is in the best interests of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s Common Shareholders. The Fund cannot predict whether it will </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">be able to sell any asset for the price or on the terms set by it or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">whether any price or other terms offered by a prospective purchaser </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">would be acceptable to the Fund. The Fund also cannot predict the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">length of time needed to find a willing purchaser and to close the sale </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of an asset. The Fund may be required to expend cash to correct defects </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or to make improvements before an asset can be sold, and there can be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">no assurance that it will have cash available to correct those defects or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to make those improvements. As a result, the Fund’s ability to sell </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments in response to changes in economic and other conditions </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">could be limited. Limitations on the Fund’s ability to respond to adverse </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">changes in the performance of its investments may have a material </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">adverse effect on the Fund’s business, financial condition and results of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">operations and the Fund’s ability to make distributions.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div> <div style="line-height:12.0pt;text-align:left"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Real Estate Investment Risk</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund’s investments will be subject to the risks inherent in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">ownership and operation of real estate and real estate-related </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">businesses and assets. These risks include, but are not limited to:</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div><div style="clear:both;margin-top:6pt;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the burdens of ownership of real property;</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">general and local economic conditions (such as an oversupply of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">space or a reduction in demand for space);</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the supply and demand for properties (including competition </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">based on rental rates);</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">energy and supply shortages;</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">fluctuations in average occupancy and room rates;</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the attractiveness, type and location of the properties and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">changes in the relative popularity of commercial properties as an </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment;</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the financial condition and resources of tenants, buyers and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sellers of properties;</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">increased mortgage defaults;</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the quality of maintenance, insurance and management services;</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">changes in the availability of debt financing which may render the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sale or refinancing of properties difficult or impracticable;</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">changes in building, environmental and other laws and/or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">regulations (including those governing usage and improvements), </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">fiscal policies and zoning laws;</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">changes in real property tax rates;</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">changes in interest rates and the availability of mortgage funds </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which may render the sale or refinancing of properties difficult or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">impracticable;</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">changes in operating costs and expenses;</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">uninsured losses or delays from casualties or condemnation;</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">negative developments in the economy that depress travel or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">leasing activity;</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">environmental liabilities;</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">contingent liabilities on disposition of assets;</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">uninsured or uninsurable casualties;</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">acts of God, including earthquakes, hurricanes and other natural </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">disasters;</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">social unrest and civil disturbances, epidemics, pandemics or other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">public crises;</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">terrorist attacks and war;</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">risks and operating problems arising out of the presence of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">certain construction materials, structural or property-level latent </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">defects, work stoppages, labor shortages, strikes, union relations </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and contracts, fluctuating prices and supply of labor and/or other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">labor-related factor; and</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other factors which are beyond the control of the Investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Manager and its affiliates.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">In addition, the Fund’s investments will be subject to various risks which </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">could cause fluctuations in occupancy, rental rates, operating income </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and expenses or which could render the sale or financing of its </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">properties difficult or unattractive. For example, following the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">termination or expiration of a tenant’s lease, there may be a period of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">time before the Fund will begin receiving rental payments under a </div></div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">replacement lease. During that period, the Fund will continue to bear </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">fixed expenses such as interest, real estate taxes, maintenance and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other operating expenses. In addition, declining economic conditions </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may impair the Fund’s ability to attract replacement tenants and achieve </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rental rates equal to or greater than the rents paid under previous </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">leases. Increased competition for tenants may require the Fund to make </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">capital improvements to properties which would not have otherwise </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">been planned. Ultimately, to the extent that the Fund is unable to renew </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">leases or re-let space as leases expire, decreased cash flow from tenants </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">will result, which could adversely impact the Fund’s operating results. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Furthermore, events involving limited liquidity, defaults, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">non-performance or other adverse developments that affect financial </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">institutions or the financial services industry generally, or concerns or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rumors about any events of these kinds or other similar risks, have in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">past and may in the future lead to market-wide liquidity problems.</div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Market Disruptions Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund is subject to investment and operational risks associated with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">financial, economic and other global market developments and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">disruptions, including those arising from war, military conflicts, terrorism, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">social unrest, recessions, supply chain disruptions, market manipulation, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">government interventions, defaults and shutdowns, political changes or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">diplomatic developments, public health emergencies (such as the spread </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of infectious diseases, pandemics and epidemics), bank failures and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">natural/environmental disasters, which can all negatively impact the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities markets, interest rates, auctions, secondary trading, ratings, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">credit risk, inflation, deflation and other factors relating to the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments or the Investment Manager’s operations and the value of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">an investment in the Fund, its distributions and its returns. These events </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">can also impair the technology and other operational systems upon </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which the Fund’s service providers, including PIMCO as the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment adviser, rely, and could otherwise disrupt the Fund’s service </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">providers’ ability to fulfill their obligations to the Fund. Furthermore, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">events involving limited liquidity, defaults, non-performance or other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">adverse developments that affect financial institutions or the financial </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">services industry generally, or concerns or rumors about any events of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">these kinds or other similar risks, have in the past and may in the future </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">lead to market-wide liquidity problems.</div></div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Commercial Real Estate Industry Risk</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;"> </div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund’s business and operations are dependent on the commercial </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">real estate industry generally, which in turn is dependent upon broad </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">economic conditions. Challenging economic and financial market </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">conditions may cause the Fund to experience an increase in the number </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of private commercial real estate investments that result in losses, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">including delinquencies, non-performing assets and a decrease in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">value of the property or, in the case of real estate debt and traded real </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">estate-related securities, collateral which secures its investments, all of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which could adversely affect the Fund’s results of operations. The Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may need to establish significant provisions for losses or impairment, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and be forced to sell assets at undesirable prices, which may result in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund’s NAV declining and the Fund incurring substantial losses.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Additionally, economic conditions can negatively impact the businesses </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of tenants of the Fund’s private commercial real estate investments, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which in turn could cause the Fund to experience increased </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">delinquencies or decreasing rents, either of which would negatively </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">impact the Fund’s income. These conditions may increase the volatility of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the value of private commercial real estate investments made by the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund. These developments also may make it more difficult for the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to accurately value its investments or to sell its investments on a timely </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">basis. These developments, including elevated interest rates relative to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">previous years, or a gradual decline in interest rates from these elevated </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">levels, could adversely affect the ability of the Fund to use leverage for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment purposes and increase the cost of such leverage, which </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">would reduce returns. Such developments could, in turn, diminish </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">significantly the Fund’s revenue from investments and adversely affect </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund’s NAV.</div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Private Commercial Real Estate Risk</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;"> </div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Lease defaults, terminations by one or more tenants or landlord-tenant </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">disputes may reduce the Fund’s revenues and net income. Any of these </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">situations may result in extended periods during which there is a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">significant decline in revenues or no revenues generated by a property. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">If this occurred, it could adversely affect the Fund’s performance.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund’s financial position and its ability to make distributions may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">also be adversely affected by financial difficulties experienced by any </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">major tenants, including bankruptcy, insolvency or a general downturn </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in the business, or in the event any major tenants do not renew or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">extend their relationship as their lease terms expire. A tenant in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">bankruptcy may be able to restrict the ability to collect unpaid rents or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest during the bankruptcy proceeding. Furthermore, dealing with a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">tenants’ bankruptcy or other default may divert management’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">attention and cause the Fund to incur substantial legal and other costs.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund’s investments in real estate will be pressured in challenging </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">economic and rental market conditions. If the Fund is unable to re-let or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">renew leases for all or substantially all of the space at these properties, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">if the rental rates upon such renewal or re-letting are significantly lower </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">than expected, or if the Fund’s reserves for these purposes prove </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">inadequate, the Fund will experience a reduction in net income and may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">be required to reduce or eliminate cash distributions.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund may obtain only limited warranties when it purchases an </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">equity investment in private commercial real estate. The purchase of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">properties with limited warranties increases the risk that the Fund may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">lose some or all of its invested capital in the property, as well as the loss </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of rental income from that property if an issue should arise that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">decreases the value of that property and is not covered by the limited </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">warranties. If any of these results occur, it may have a material adverse </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">effect on the Fund’s business, financial condition and results of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">operations and the Fund’s ability to make distributions.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Single Tenant Risk</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;"> </div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund depends on its tenants for revenue, and therefore the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">revenue is dependent on the success and economic viability of its </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">tenants. Certain of the Fund’s investments in single tenant properties </div></div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may be leased out to single tenants that the Investment Manager </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">believes have favorable credit profiles and/or performance attributes </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">supporting highly visible long-term cash flows. Adverse impacts to such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">tenants, including as a result of changes in market or economic </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">conditions, natural disasters, outbreaks of an infectious disease, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">pandemic or any other serious public health concern, political events or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other factors that may impact the operation of these properties, may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">have negative effects on the Fund’s business and financial results. As a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">result, such tenants may in the future be required to suspend operations </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">at the Fund’s properties for what could be an extended period of time. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Further, if such tenants default under their leases, the Fund may not be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">able to promptly enter into a new lease or operating arrangement for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such properties, rental rates or other terms under any new leases or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">operating arrangement may be less favorable than the terms of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">current lease or operating arrangement or the Fund may be required to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">make capital improvements to such properties for a new tenant, any of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which could adversely impact the Fund’s operating results.</div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Litigation Risk</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;"> </div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">In the ordinary course of its business, the Fund may be subject to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">litigation from time to time. The outcome of such proceedings may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">materially adversely affect the value of the Fund or its investments and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may continue without resolution for long periods of time. Any litigation </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may consume substantial amounts of the Investment Manager’s time </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and attention, and that time and the devotion of these resources to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">litigation may, at times, be disproportionate to the amounts at stake in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the litigation.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The acquisition, ownership and disposition of real properties carries </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">certain specific litigation risks. Litigation may be commenced with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">respect to a property acquired by the Fund or its subsidiaries in relation </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to activities that took place prior to the Fund’s acquisition of such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">property. In addition, at the time of disposition of an individual property, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">a potential buyer may claim that it should have been afforded the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">opportunity to purchase the asset or alternatively that such potential </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">buyer should be awarded due diligence expenses incurred or statutory </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">damages for misrepresentation relating to disclosure made, if such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">buyer is passed over in favor of another as part of the Fund’s efforts to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">maximize sale proceeds. Similarly, successful buyers may later sue the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund under various damage theories, including those sounding in tort, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">for losses associated with latent defects or other problems not </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">uncovered in due diligence.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Insurance Risk</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;"> </div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Certain types of losses, generally of a catastrophic nature, such as </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">earthquakes, floods and hurricanes may be uninsurable or not </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">economically insurable. The Fund may not obtain, or be able to require </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">tenants to obtain certain types of insurance if it is deemed commercially </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">unreasonable. Under such circumstances, the insurance proceeds, if any, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">might not be adequate to restore the economic value of the property, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which might decrease the value of the property. As a result, the insured </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">company could lose its investments in, and anticipated profits and cash </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">flows from, a number of properties and, as a result, adversely affect the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s investment performance.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div> <div style="line-height:12.0pt;text-align:left"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Environmental Risk</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund may be exposed to substantial risk of loss arising from </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments involving undisclosed or unknown environmental, health or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">occupational safety matters, or inadequate reserves, insurance or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">insurance proceeds for such matters that have been previously </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">identified. Under various U.S. federal, state and local and non-U.S. laws, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">ordinances and regulations, an owner of real property may be liable for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the costs of removal or remediation of certain hazardous or toxic </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">substances on or in such property. Such laws may also impose joint and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">several liability, which can result in a party being obligated to pay for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">greater than its share, or even all, of the liability involved. Such liability </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may also be imposed without regard to whether the owner knew of, or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">was responsible for, the presence of such hazardous or toxic substances </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and may be imposed on the owner in connection with the activities of a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">tenant at the property. The cost of any required remediation and the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">owner’s liability therefore as to any property are generally not limited </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">under such laws and could exceed the value of the property and/or the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">aggregate assets of the owner. The presence of such substances, or the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">failure to properly remediate contamination from such substances, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">would adversely affect the owner’s ability to sell the real estate or to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">borrow funds using such property as collateral, which could have an </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">adverse effect on the Fund’s return from such investment. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Environmental claims with respect to a specific investment could exceed </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the value of such investment, and under certain circumstances, subject </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the other assets of the Fund to such liabilities. In addition, some </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">environmental laws create a lien on contaminated property in favor of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">governments or government agencies for costs they incur in connection </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">with the contamination.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The ongoing presence of environmental contamination, pollutants or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other hazardous materials on a property (whether known at the time of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">acquisition or not) could also result in personal injury (and associated </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">liability) to persons on the property and persons removing such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">materials, future or continuing property damage (which would adversely </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">affect property value) or claims by third parties, including as a result of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">exposure to such materials through the spread of contaminants.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">In addition, the Fund’s operating costs and performance may be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">adversely affected by compliance obligations under environmental </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">protection statutes, rules and regulations relating to investments of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund, including additional compliance obligations arising from any </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">change to such statutes, rules and regulations. Statutes, rules and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">regulations may also restrict development of, and use of, property. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Certain clean-up actions brought by governmental agencies and private </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">parties could also impose obligations in relation to the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments and result in additional costs to the Fund. If the Fund is </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">deemed liable for any such environmental liabilities and is unable to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">seek recovery against its tenant, the Fund’s business, financial condition </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and results of operations could be materially and adversely affected, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and the amount available to make distributions could be reduced.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Further, even in cases where the Fund is indemnified by the seller with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">respect to an investment against liabilities arising out of violations of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">environmental laws and regulations, there can be no assurance as to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the financial viability of the seller to satisfy such indemnities or the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">ability of the Fund to achieve enforcement of such indemnities.</div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Joint Venture Risk</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;"> </div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund expects to enter into joint ventures with third parties to make </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments. Joint ventures entered into by the Fund would only include </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">arrangements in which the Fund does not primarily control the joint </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">venture. The Fund’s partial interest investments will generally be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">structured as joint ventures or co-investment arrangements with third </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">parties. In these joint ventures, the Fund would generally share control </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">with the third-party partner (for example the Fund may have approval </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rights over some of the joint venture’s activities, and in limited </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">circumstances that do not amount to primary control of the joint </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">venture, may have the ability to require that the joint venture take </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">specific actions), even though the Fund may hold a majority of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">economic interests of a joint venture. In many cases the third-party </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">partner may provide services for the joint venture or its assets, including, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">without limitation, management of day-to-day operations, asset </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">management, property management, construction or development </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">management, leasing, refinancing or disposition related services. The </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund may also make investments in partnerships or other co-ownership </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">arrangements or participations. Such investments may involve risks not </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">otherwise present with other methods of investment, including, for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instance, the following risks and conflicts of interest:</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the joint venture partner in an investment could become insolvent </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or bankrupt;</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">fraud or other misconduct by the joint venture partner;</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund may share decision-making authority with its joint </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">venture partner regarding certain major decisions affecting the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">ownership of the joint venture and the joint venture property, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such as the sale of the property or the making of additional </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">capital contributions for the benefit of the property, which may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">prevent the Fund from taking actions that are opposed by its joint </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">venture partner;</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">under certain joint venture arrangements, neither party may have </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the power to control the venture and, under certain </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">circumstances, an impasse could result regarding cash </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">distributions, reserves, or a proposed sale or refinancing of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment, and this impasse could have an adverse impact on </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the joint venture, which could adversely impact the operations </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and profitability of the joint venture and/or the amount and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">timing of distributions the Fund receives from such joint venture;</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the joint venture partner may at any time have economic or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">business interests or goals that are or that become in conflict with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund’s business interests or goals, including, for instance, the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">operation of the properties;</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the joint venture partner may be structured differently than the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund for tax purposes and this could create conflicts of interest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and risk to the Fund’s ability to qualify as a REIT;</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund may rely upon its joint venture partner to manage the </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div style="line-height:12.0pt;margin-left:22pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">day-to-day operations of the joint venture and underlying assets, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">as well as to prepare financial information for the joint venture </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and any failure to perform these obligations may have a negative </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">impact on the Fund’s performance and results of operations;</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the joint venture partner may experience a change of control, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which could result in new management of the joint venture </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">partner with less experience or conflicting interests to the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and be disruptive to the Fund’s business;</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such joint venture partner may be in a position to take action </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">contrary to the Fund’s instructions or requests or contrary to the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s policies or objectives, including the Fund’s policy with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">respect to maintaining its qualification as a REIT;</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the terms of the joint ventures could restrict the Fund’s ability to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sell or transfer its interest to a third party when it desires on </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">advantageous terms, which could result in reduced liquidity;</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund or its joint venture partner may have the right to trigger </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">a buy-sell arrangement, which could cause the Fund to sell its </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest, or acquire its partner’s interest, at a time when the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">otherwise would not have initiated such a transaction;</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the joint venture partner may not have sufficient personnel or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">appropriate levels of expertise to adequately support the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">initiatives; and</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to the extent it is permissible under the Investment Company Act </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">for the Fund to partner with other vehicles advised by the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Investment Manager, the Investment Manager may have conflicts </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of interest that may not be resolved in the Fund’s favor.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">In addition, disputes between the Fund and its joint venture partner may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">result in litigation or arbitration that would increase the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">expenses and prevent the Fund’s officers and trustees from focusing </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">their time and efforts on the Fund’s business. Any of the above might </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">subject the Fund to liabilities and thus reduce its returns on the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment with the joint venture partner. The Fund may at times enter </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">into arrangements that provide for unfunded commitments and, even </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">when not contractually obligated to do so, may be incentivized to fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">future commitments related to its investments.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Recourse Financings Risk</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;"> </div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">In certain cases, financings for the Fund’s commercial real estate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">properties may be recourse to the Fund. Generally, commercial real </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">estate financings are structured as non-recourse to the borrower, which </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">limits a lender’s recourse to the property pledged as collateral for the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">loan, and not the other assets of the borrower or to any parent of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">borrower, in the event of a loan default. However, lenders customarily </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">will require that a creditworthy parent entity enter into so-called </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">“recourse carveout” guarantees to protect the lender against certain </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">bad-faith or other intentional acts of the borrower in violation of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">loan documents. A “bad boy” guarantee typically provides that the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">lender can recover losses from the guarantors for certain bad acts, such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">as fraud or intentional misrepresentation, intentional waste, willful </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">misconduct, criminal acts, misappropriation of funds, voluntary </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">incurrence of prohibited debt and environmental losses sustained by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">lender. In addition, “bad boy” guarantees typically provide that the loan </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">will be a full personal recourse obligation of the guarantor, for certain </div></div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">actions, such as prohibited transfers of the collateral or changes of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">control and voluntary bankruptcy of the borrower. These financing </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">arrangements with respect to the Fund’s investments generally require </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">“bad boy” guarantees from the Fund and/or certain of the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">subsidiaries and in the event that such a guarantee is called, the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">assets could be adversely affected. Moreover, the Fund’s “bad boy” </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">guarantees could apply to actions of the joint venture partners </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">associated with the Fund’s investments. While the Investment Manager </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">expects to negotiate indemnities from such joint venture partners to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">protect against such risks, there remains the possibility that the acts of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such joint venture partner could result in liability to the Fund under such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">guarantees. PIMCO may provide “bad boy” guarantees on behalf of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other funds, investment vehicles and accounts managed by PIMCO </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investing alongside the Fund and as such guarantees are not for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">borrowed money, they will typically not be included under the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">leverage limitations.</div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Valuation Risk</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;"> </div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Certain securities, including certain real estate investments that the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund makes, in which the Fund invests may be less liquid and more </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">difficult to value than other types of securities. Investments for which </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">market quotations are not readily available are valued at fair value as </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">determined in good faith pursuant to Rule 2a-5 under the Act. See </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">“How Fund Shares are Priced.” Fair value pricing may require subjective </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">determinations about the value of a security or other asset. As a result, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">there can be no assurance that fair value pricing will result in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">adjustments to the prices of securities or other assets, or that fair value </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">pricing will reflect actual market value, and it is possible that the fair </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">value determined for a security or other asset will be materially different </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">from quoted or published prices, from the prices used by others for the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">same security or other asset and/or from the value that actually could be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or is realized upon the sale of that security or other asset. The price the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund pays for its private commercial real estate investments will be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">based on the Investment Manager’s projections of market demand, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">occupancy levels, rental income, the costs of any development, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">redevelopment or renovation of a property, borrower expertise and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other factors. If any of the Investment Manager’s projections are </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">inaccurate or it ascribes a higher value to assets and their value </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">subsequently drops or fails to rise because of market factors, returns on </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund’s investment may be lower than expected and the Fund could </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">experience losses.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">For the purposes of calculating the Fund’s NAV, private commercial real </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">estate investments typically will initially be valued at cost, which the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund expects to represent fair value at that time. Thereafter, valuations </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of properties will be derived from independent property appraisals or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">based on one or more fair valuation methodologies as determined by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">PIMCO in accordance with its policies and procedures.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The valuation methodologies used to value the Fund’s private </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">commercial real estate investments will involve subjective judgments </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and projections that may not materialize. Valuation methodologies will </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">also involve assumptions and opinions about future events, which may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or may not materialize. Valuations and appraisals of the Fund’s private </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">commercial real estate investments will be only estimates of fair value. </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Ultimate realization of the value of an asset depends to a great extent </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">on economic, market and other conditions beyond the Fund’s control </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and the control of the Investment Manager and the Fund’s independent </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">valuation advisors, as applicable.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Valuations and appraisals of the Fund’s private commercial real estate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments are only conducted on a periodic basis. If the relevant </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">asset’s value changes after such appraisal, it will be difficult for PIMCO </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to quantify the impact of such change and the necessary information to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">make a full assessment of the value may not be immediately available, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which may require the Investment Manager to make an assessment of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">fair value with incomplete information. The participation of PIMCO in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund’s valuation process could result in a conflict of interest, since </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the advisory fee is based on the Fund’s average daily net assets. A </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">material change in a private commercial real estate investment or a new </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">appraisal of a private commercial real estate investment may have a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">material impact on the Fund’s overall NAV, resulting in a sudden </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">increase or decrease to the Fund’s NAV per share. Further, valuations do </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">not necessarily represent the price at which an asset would sell, since </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">market prices of assets can only be determined by negotiation between </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">a willing buyer and seller. As such, the carrying value of an asset may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">not reflect the price at which the asset could be sold in the market, and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the difference between carrying value and the ultimate sales price could </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">be material. In addition, accurate valuations are more difficult to obtain </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in times of low transaction volume because there are fewer market </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">transactions that can be considered in the context of the appraisal. It </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">also may be difficult to reflect fully and accurately rapidly changing </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">market conditions or material events that may impact the value of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s real property investments between valuations, or to obtain </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">complete information regarding any such events in a timely manner. For </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">example, an unexpected termination or renewal of a material lease, a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">material increase or decrease in vacancies, an unanticipated structural </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or environmental event at a property or material changes in market, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">economic and political conditions globally and in the jurisdictions and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sectors in which a property operates, may cause the value of a property </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to change materially, yet obtaining sufficient relevant information after </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the occurrence has come to light and/or analyzing fully the financial </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">impact of such an event may be difficult to do and may require some </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">time. As a result, the Fund’s NAV per share may not reflect a material </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">event until such time as sufficient information is available and the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">impact of such an event on a property’s valuation is evaluated, such that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund’s NAV may be appropriately updated. The Investment Manager </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">expects to utilize the independent valuation advisors’ appraisals in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">determining the fair value of the private commercial real estate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments. There will be no retroactive adjustment in the valuation of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such assets, the offering price of the Common Shares, the price the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">paid to repurchase Common Shares or NAV-based fees the Fund paid to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">PIMCO and the Distributor to the extent such valuations prove to not </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">accurately reflect the realizable value of the Fund’s assets. Because the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">price shareholders will pay for Common Shares in this offering, and the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">price at which shares will be repurchased in quarterly repurchase offers </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">by the Fund, are based on NAV per share of Common Shares, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">shareholders may pay more than realizable value or receive less than </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">realizable value for an investment in the Fund.</div></div></div> <div style="line-height:12.0pt;text-align:left"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Risks Related to Specific Private Commercial Real Estate </div></div><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Property Types</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund may invest across various CRE property types, including, but </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">not limited to residential, industrial, and office, retail, hospitality and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">select niche sectors. The Fund’s exposure to any of the aforementioned </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">property types may change based on PIMCO’s outlook, which may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">expose the Fund to risks. For example, the Fund’s investments in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">multifamily properties may be affected by declining rents or may incur </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">vacancies either by the expiration and non-renewal of tenant leases or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the continued default of tenants under their leases, resulting in reduced </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">revenues and less cash available to distribute to Common Shareholders. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fluctuations in manufacturing activity in the United States may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">adversely affect the tenants of the Fund’s industrial properties and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">therefore the demand for and profitability of its industrial properties. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Office properties are subject to risks that the tenants of those office </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">properties face, including the overall health of the economy, the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">possibility of a downturn in the businesses operated by the tenants, lack </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of demand or obsolescence of the products or services provided by the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">tenants, and the non-competitiveness of the office tenants relative to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">their competitors. Specialty properties are subject to risks specific to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">their specialty use. For example, student housing properties are subject </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to seasonality and increased leasing risk and may be adversely affected </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">by a change in university admission policies. Additional niche sectors </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may include, among others, data centers, life sciences, medical offices, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and self-storage. The above is not an exhaustive list of the sectors that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund expects to invest in or the risks associated with those sectors. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund is not obliged to target all (or any one) of the above asset </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">classes or strategies.</div></div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Mortgage Loan Risk</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;"> </div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund may originate and selectively acquire senior mortgage loans </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which are generally loans secured by a first mortgage lien on a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">commercial property and are subject to risks of delinquency and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">foreclosure and risks of loss, that are greater than similar risks </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">associated with loans made on the security of single-family residential </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">property. In addition, certain of the mortgage loans in which the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">invests may be structured so that all or a substantial portion of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">principal will not be paid until maturity, which increases the risk of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">default at that time. The ability of a borrower to repay a loan secured by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">an income-producing property typically is dependent primarily upon the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">successful operation of such property rather than upon the existence of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">independent income or assets of the borrower. If the net operating </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">income of the property is reduced, the borrower’s ability to repay the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">loan may be impaired. Net operating income of an income-producing </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">property can be affected by, among other things: tenant mix, success of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">tenant businesses, property management decisions, property location </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and condition, competition from comparable types of properties, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">changes in laws that increase operating expense or limit rents that may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">be charged, any need to address environmental contamination at the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">property, the occurrence of any uninsured casualty at the property, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">changes in national, regional or local economic conditions and/or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">specific industry segments, declines in regional or local real estate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">values, declines in regional or local rental or occupancy rates, increases </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in interest rates, real estate tax rates and other operating expenses, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">changes in governmental rules, regulations and fiscal policies, including </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">environmental legislation, acts of God, terrorism, social unrest, civil </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">disturbances, epidemics and other public crises.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">In the event of any default under a mortgage loan held directly by the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund, it will bear a risk of loss of principal to the extent of any deficiency </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">between the value of the collateral and the principal and accrued </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest of the mortgage loan, which could have a material adverse </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">effect on the profitability of the Fund. In the event of the bankruptcy of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">a mortgage loan borrower, the mortgage loan to such borrower will be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">deemed to be secured only to the extent of the value of the underlying </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">collateral at the time of bankruptcy (as determined by the bankruptcy </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">court), and the lien securing the mortgage loan will be subject to the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">avoidance powers of the bankruptcy trustee or debtor-in-possession to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the extent the lien is unenforceable under state law.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Foreclosure of a mortgage loan can be an expensive and lengthy </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">process which could have a substantial negative effect on the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">anticipated return on the foreclosed mortgage loan. RMBS evidence </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interests in or are secured by pools of residential mortgage loans and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">CMBS evidence interests in or are secured by a single commercial </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgage loan or a pool of commercial mortgage loans. Accordingly, the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgage-backed securities in which the Fund invests are subject to all </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of the risks of the underlying mortgage loans.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Mezzanine Loan Risk</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;"> </div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund may invest in mezzanine loans that take the form of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">subordinated loans secured by a pledge of the ownership interests of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">either the entity owning the real property or the entity that owns the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest in the entity owning the real property. These types of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments involve a higher degree of risk than first mortgage lien </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">loans secured by income producing real property because the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment may become unsecured as a result of foreclosure by the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">senior lender. In the event of a bankruptcy of the entity providing the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">pledge of its ownership interests as security, the Fund may not have full </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">recourse to the assets of such entity, or the assets of the entity may not </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">be sufficient to satisfy the Fund’s mezzanine loan. If a borrower defaults </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">on the Fund’s mezzanine loan or debt senior to the Fund’s loan, or in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the event of a borrower bankruptcy, the Fund’s mezzanine loan will be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">satisfied only after the senior debt. As a result, the Fund may not recover </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">some or all of its investment. In addition, mezzanine loans may have </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">higher loan-to-value ratios than conventional mortgage loans, resulting </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in less equity in the real property and increasing the risk of loss of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">principal.</div></div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Certain Affiliations</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Certain broker-dealers may be considered to be affiliated persons of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund and/or the Investment Manager due to their possible affiliations </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">with Allianz SE, the ultimate parent of the Investment Manager, or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">another Allianz entity. Allianz Asset Management of America LP merged </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">with Allianz Asset Management, with the latter being the surviving </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">entity, effective January 1, 2023. Following the merger, Allianz Asset </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Management is PIMCO LLC’s managing member and direct parent </div></div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">entity. Absent an exemption from the SEC or other regulatory relief, the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund is generally precluded from effecting certain principal transactions </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">with affiliated brokers, and its ability to purchase securities being </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">underwritten by an affiliated broker or a syndicate including an affiliated </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">broker, or to utilize affiliated brokers for agency transactions, is subject </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to restrictions. This could limit the Fund’s ability to engage in securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">transactions and take advantage of market opportunities.</div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Mortgage-Related and Other Asset-Backed Instruments Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The mortgage-related assets in which the Fund may invest include, but </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">are not limited to, any security, instrument or other asset that is related </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to U.S. or non-U.S. mortgages, including those issued by private </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">originators or issuers, or issued or guaranteed as to principal or interest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">by the U.S. government or its agencies or instrumentalities or by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">non-U.S. governments or authorities, such as, without limitation, assets </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">representing interests in, collateralized or backed by, or whose values </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">are determined in whole or in part by reference to any number of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgages or pools of mortgages or the payment experience of such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgages or pools of mortgages, including REMICs, which could </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">include Re-REMICs, mortgage pass-through securities, inverse floaters, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">CMOs, CLOs, multiclass pass-through securities, private mortgage </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">pass-through securities, stripped mortgage securities (generally </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest-only and principal-only securities), mortgage-related asset </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">backed securities and mortgage-related loans (including through </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">participations, assignments, originations and whole loans), including </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">commercial and residential mortgage loans. Exposures to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgage-related assets through derivatives or other financial </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instruments will be considered investments in mortgage-related assets.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund may also invest in other types of ABS, including CDOs, CBOs </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and CLOs and other similarly structured securities. See “Investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Objectives and Strategies-Portfolio Composition” in this prospectus for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">a description of the various mortgage-related and other asset-backed </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instruments in which the Fund may invest and their related risks.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Mortgage-related and other asset-backed instruments represent </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interests in “pools” of mortgages or other assets such as consumer </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">loans or receivables held in trust and often involve risks that are </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">different from or possibly more acute than risks associated with other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">types of debt instruments.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Generally, rising interest rates tend to extend the duration of fixed rate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgage-related assets, making them more sensitive to changes in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest rates. Compared to other fixed income investments with similar </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">maturity and credit, mortgage-related securities may increase in value to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">a lesser extent when interest rates decline and may decline in value to a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">similar or greater extent when interest rates rise. As a result, in a period </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of rising interest rates, the Fund may exhibit additional volatility since </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">individual mortgage holders are less likely to exercise prepayment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">options, thereby putting additional downward pressure on the value of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">these securities and potentially causing the Fund to lose money. This is </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">known as extension risk. Mortgage-backed securities can be highly </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sensitive to rising interest rates, such that even small movements can </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">cause the Fund to lose value. Mortgage-backed securities, and in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">particular those not backed by a government guarantee, are subject to </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">credit risk. When interest rates decline, borrowers may pay off their </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgages sooner than expected. This can reduce the returns of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund because the Fund may have to reinvest that money at the lower </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">prevailing interest rates. In addition, the creditworthiness, servicing </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">practices, and financial viability of the servicers of the underlying </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgage pools present significant risks. For instance, a servicer may be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">required to make advances in respect of delinquent loans underlying the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgage-related securities; however, servicers experiencing financial </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">difficulties may not be able to perform these obligations. Additionally, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">both mortgage-related securities and asset-backed securities are subject </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to risks associated with fraud or negligence by, or defalcation of, their </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">servicers. These securities are also subject to the risks of the underlying </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">loans. In some circumstances, a servicer’s or originator’s mishandling of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">documentation related to the underlying collateral (e.g., failure to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">properly document a security interest in the underlying collateral) may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">affect the rights of security holders in and to the underlying collateral. In </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">addition, the underlying loans may have been extended pursuant to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">inappropriate underwriting guidelines, to no underwriting guidelines at </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">all, or to fraudulent origination practices. The owner of a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgage-backed security’s ability to recover against the sponsor, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">servicer or originator is uncertain and is often limited. The Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments in other asset-backed instruments are subject to risks </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">similar to those associated with mortgage-related assets, as well as </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">additional risks associated with the nature of the assets and the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">servicing of those assets. Payment of principal and interest on </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">asset-backed instruments may be largely dependent upon the cash </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">flows generated by the assets backing the instruments, and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">asset-backed instruments may not have the benefit of any security </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest in the related assets.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Subordinate mortgage-backed or asset-backed instruments are paid </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest only to the extent that there are funds available to make </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">payments. To the extent the collateral pool includes a large percentage </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of delinquent loans, there is a risk that interest payments on </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">subordinate mortgage-backed or asset-backed instruments will not be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">fully paid.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">There are multiple tranches of mortgage-backed and asset-backed </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instruments, offering investors various maturity and credit risk </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">characteristics. For example, tranches may be categorized as senior, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mezzanine, and subordinated/equity or “first loss,” according to their </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">degree of risk. The most senior tranche of a mortgage-backed or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">asset-backed instrument generally has the greatest collateralization and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">generally pays the lowest interest rate. If there are defaults or the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">collateral otherwise underperforms, scheduled payments to senior </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">tranches take precedence over those of mezzanine tranches, and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">scheduled payments to mezzanine tranches take precedence over those </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to subordinated/equity tranches. Lower tranches represent lower </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">degrees of credit quality and pay higher interest rates intended to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">compensate for the attendant risks. The return on the lower tranches is </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">especially sensitive to the rate of defaults in the collateral pool.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The lowest tranche (i.e., the “equity” or “residual” tranche) specifically </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">receives the residual interest payments (i.e., money that is left over after </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the higher tranches have been paid and expenses of the issuing entities </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">have been paid) rather than a fixed interest rate. The Fund may also </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">invest in the residual or equity tranches of mortgage-related and other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">asset-backed instruments, which may be referred to as subordinate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgage-backed or asset-backed instruments and interest-only </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgage-backed or asset-backed instruments. The Fund expects that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments in subordinate mortgage-backed and other asset-backed </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instruments will be subject to risks arising from delinquencies and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">foreclosures, thereby exposing its investment portfolio to potential </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">losses. Subordinate securities of mortgage-backed and other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">asset-backed instruments are also subject to greater credit risk than </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">those mortgage-backed or other asset-backed instruments that are </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">more highly rated.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The mortgage markets in the United States and in various foreign </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">countries have experienced extreme difficulties in the past that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">adversely affected the performance and market value of certain </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgage-related investments. Delinquencies and losses on residential </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and commercial mortgage loans (especially subprime and second-lien </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgage loans) may increase, and a decline in or flattening of housing </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and other real property values may exacerbate such delinquencies and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">losses. In addition, reduced investor demand for mortgage loans and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgage-related securities and increased investor yield requirements </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">have caused limited liquidity in the secondary market for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mortgage-related securities, which can adversely affect the market value </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of mortgage-related securities. It is possible that such limited liquidity in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such secondary markets could continue or worsen.</div></div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Risks Related to Investments in Publicly Traded REITs</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;"> </div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund’s investments in the securities of publicly traded REITs will be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">subject to a variety of risks affecting those REITs directly. Share prices of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">publicly traded REITs may decline because of adverse developments </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">affecting the real estate industry and real property values, including </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">supply and demand for properties, the economic health of the country </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or of different regions, the strength of specific industries that rent </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">properties and interest rates. REITs often invest in highly leveraged </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">properties. Returns from REITs, which typically are small or medium </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">capitalization stocks, may trail returns from the overall stock market. In </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">addition, changes in interest rates may hurt real estate values or make </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">REIT shares less attractive than other income-producing investments. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">REITs are also subject to heavy cash flow dependency and defaults by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">borrowers and tenants.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Repurchase Offers Risk</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;"> </div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">As described under “Periodic Repurchase Offers” above, the Fund is an </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">“interval fund” and, in order to provide liquidity to shareholders, the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund, subject to applicable law, intends to conduct quarterly repurchase </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">offers of the Fund’s outstanding Common Shares at NAV, subject to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">approval of the Board. In each quarter, such repurchase offers will be for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">at least 5% and not more than 25% of its outstanding Common Shares </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">at NAV, pursuant to Rule 23c-3 under the Act.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund currently expects to conduct quarterly repurchase offers for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">5% of its outstanding Common Shares under ordinary circumstances. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund believes that these repurchase offers are generally beneficial </div></div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to the Fund’s shareholders, and repurchases generally will be funded </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">from available cash or sales of portfolio securities. However, repurchase </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">offers and the need to fund repurchase obligations may affect the ability </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of the Fund to be fully invested or force the Fund to maintain a higher </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">percentage of its assets in liquid investments, which may harm the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s investment performance. Moreover, diminution in the size of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund through repurchases may result in untimely sales of portfolio </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities (with associated imputed transaction costs, which may be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">significant), and may limit the ability of the Fund to participate in new </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment opportunities or to achieve its investment objectives. The </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund may accumulate cash by holding back (i.e., not reinvesting) </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">payments received in connection with the Fund’s investments. If at any </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">time cash and other liquid assets held by the Fund are not sufficient to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">meet the Fund’s repurchase obligations, the Fund intends, if necessary, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to sell investments. To the extent the Fund employs investment leverage, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">repurchases of Common Shares would compound the adverse effects of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">leverage in a declining market. In addition, if the Fund borrows to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">finance repurchases, interest on that borrowing will negatively affect </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Common Shareholders who do not tender their Common Shares by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">increasing the Fund’s expenses and reducing any net investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">income. If a repurchase offer is oversubscribed, the Fund may, but is not </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">required to, determine to increase the amount repurchased by up to 2% </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of the Fund’s outstanding shares as of the date of the Repurchase </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Request Deadline. In the event that the Fund determines not to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">repurchase more than the repurchase offer amount, or if shareholders </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">tender more than the repurchase offer amount plus 2% of the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">outstanding shares as of the date of the Repurchase Request Deadline, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund will repurchase the Common Shares tendered on a pro rata </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">basis, and shareholders will have to wait until the next repurchase offer </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to make another repurchase request. As a result, shareholders may be to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">liquidate all or a given percentage of their investment in the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">during a particular repurchase offer. Some shareholders, in anticipation </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of proration, may tender more Common Shares than they wish to have </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">repurchased in a particular quarter, thereby increasing the likelihood </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">that proration will occur. A shareholder may be subject to market and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other risks, and the NAV of Common Shares tendered in a repurchase </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">offer may decline between the Repurchase Request Deadline and the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">date on which the NAV for tendered Common Shares is determined. In </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">addition, the repurchase of Common Shares by the Fund may be a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">taxable event to shareholders.</div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">High Yield Securities Risk</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;"> </div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Issuers of high yield securities may have the right to “call” or redeem </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the issue prior to maturity, which may result in the Fund having to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">reinvest the proceeds in other high yield securities or similar instruments </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">that may pay lower interest rates. The Fund may also be subject to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">greater levels of liquidity risk than funds that do not invest in high yield </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities. Consequently, transactions in high yield securities may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">involve greater costs than transactions in more actively traded </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities. A lack of publicly-available information, irregular trading </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">activity and wide bid/ask spreads among other factors, may, in certain </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">circumstances, make high yield debt more difficult to sell at an </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">advantageous time or price than other types of securities or </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instruments. These factors may result in the Fund being unable to realize </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">full value for these securities and/or may result in the Fund not receiving </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the proceeds from a sale of a high yield security for an extended period </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">after such sale, each of which could result in losses to the Fund. To the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">extent that the Fund invests in high yield securities and unrated </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities of similar credit quality (commonly known as “high yield </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities” or “junk bonds”), the Fund may be subject to greater levels </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of credit risk, call risk and liquidity risk than funds that do not invest in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such securities, which could have a negative effect on the NAV of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s Common Shares or Common Share dividends. These securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">are considered predominantly speculative with respect to an issuer’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">continuing ability to make principal and interest payments, and may be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">more volatile than other types of securities. An economic downturn or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">individual corporate developments could adversely affect the market for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">these securities and reduce the Fund’s ability to sell these securities at </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">an advantageous time or price. The Fund may purchase distressed </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities that are in default or the issuers of which are in bankruptcy, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which involve heightened risks.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">High yield securities structured as zero-coupon bonds or pay-in-kind </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities tend to be especially volatile as they are particularly sensitive </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to downward pricing pressures from rising interest rates or widening </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">spreads and may require the Fund to make taxable distributions of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">imputed income without receiving the actual cash currency. Issuers of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">high yield securities may have the right to “call” or redeem the issue </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">prior to maturity, which may result in the Fund having to reinvest the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">proceeds in other high yield securities or similar instruments that may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">pay lower interest rates. The Fund may also be subject to greater levels </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of liquidity risk than funds that do not invest in high yield securities. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Consequently, transactions in high yield securities may involve greater </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">costs than transactions in more actively traded securities. A lack of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">publicly-available information, irregulat trading actviity and wide </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">bid/ask spreads among other factors, may, in certain circumstances, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">make high yield debt more difficult to sell at an advantageous time or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">price than other types of securities or instruments. These factors may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">result in the Fund being unable to realize full value for these securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and/or may result in the Fund not receiving the proceeds from a sale of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">a high yield security for an extended period after such sale, each of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which could result in losses to the Fund. Because of the risks involved in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investing in high yield securities, an investment in the Fund should be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">considered speculative.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">In general, lower rated debt securities carry a greater degree of risk that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the issuer will lose its ability to make interest and principal payments, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which could have a negative effect on the Fund. Securities of below </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment grade quality are regarded as having predominantly </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">speculative characteristics with respect to capacity to pay interest and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">repay principal and are commonly referred to as “high yield” securities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or “junk bonds.” High yield securities involve a greater risk of default </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and their prices are generally more volatile and sensitive to actual or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">perceived negative developments. Debt securities in the lowest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment grade category also may be considered to possess some </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">speculative characteristics by certain rating agencies. The Fund may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">purchase stressed or distressed securities that are in default or the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">issuers of which are in bankruptcy, which involve heightened risks. An </div></div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">economic downturn could severely affect the ability of issuers </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(particularly those that are highly leveraged) to service or repay their </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">debt obligations. Lower-rated securities are generally less liquid than </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">higher-rated securities, which may have an adverse effect on the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">ability to dispose of them. For example, under adverse market or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">economic conditions, the secondary market for below investment grade </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities could contract further, independent of any specific adverse </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">changes in the condition of a particular issuer, and certain securities in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund’s portfolio may become illiquid or less liquid. As a result, the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund could find it more difficult to sell these securities or may be able to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sell these securities only at prices lower than if such securities were </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">widely traded. To the extent the Fund focuses on below investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">grade debt obligations, PIMCO’s capabilities in analyzing credit quality </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and associated risks will be particularly important, and there can be no </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">assurance that PIMCO will be successful in this regard. The Fund’s credit </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">quality policies apply only at the time a security is purchased, and the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund is not required to dispose of a security in the event that a rating </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">agency or PIMCO downgrades its assessment of the credit </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">characteristics of a particular issue. In determining whether to retain or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sell such a security, PIMCO may consider factors including, but not </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">limited to, PIMCO's assessment of the credit quality of the issuer of such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">security, the price at which such security could be sold and the rating, if </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">any, assigned to such security by other rating agencies. Analysis of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">creditworthiness may be more complex for issuers of high yield </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities than for issuers of higher quality debt securities.</div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Capital Markets Risk</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;"> </div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund expects to fund a portion of its commercial real estate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments with property-level financing. The Fund’s business may be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">adversely affected by disruptions in the debt and equity capital markets </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and institutional lending market, including the lack of access to capital </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or prohibitively high costs of obtaining or replacing capital. The ongoing </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">spread of COVID-19 has had, and may continue to have, a material </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">adverse effect on credit markets. There can be no assurance that any </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">financing will be available to the Fund in the future on acceptable </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">terms, if at all, or that it will be able to satisfy the conditions precedent </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">required to use its credit facilities, if entered into, which could reduce </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the number, or alter the type, of investments that the Fund would make </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">otherwise. This may reduce the Fund’s income. To the extent that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">financing proves to be unavailable when needed, the Fund may be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">compelled to modify its investment strategies to optimize the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">performance of the portfolio. Any failure to obtain financing could have </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">a material adverse effect on the continued development or growth of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund’s business and harm the Fund’s ability to operate and make </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">distributions.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Interest Rate Risk</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;"> </div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Interest rate risk is the risk that fixed income securities and other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instruments in the Fund’s portfolio will fluctuate in value because of a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">change in interest rates. For example, as nominal interest rates rise, the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">value of certain fixed income securities held by the Fund is likely to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">decrease. A nominal interest rate can be described as the sum of a real </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest rate and an expected inflation rate. Interest rate changes can be </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sudden and unpredictable, and the Fund may lose money as a result of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">movements in interest rates. The Fund may not be able to effectively </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">hedge against changes in interest rates or may choose not to do so for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">cost or other reasons.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">A wide variety of factors can cause interest rates or yields of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">U.S. Treasury securities (or yields of other types of bonds) to rise, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">including but not limited to central bank monetary policies, changing </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">inflation or real growth rates, general economic conditions, increasing </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">bond issuances or reduced market demand for low yielding investments. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Risks associated with changes in interest rates may be heightened </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">under certain market conditions, such as during times when the Federal </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Reserve raises interest rates or when such rates remain elevated </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">following a period of historically low levels. Additionally, the U.S. and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other governments have increased, and are likely to continue increasing, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">their debt issuances, which may also heighten these risks. In addition, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">changes in monetary policy may exacerbate the risks associated with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">changing interest rates. Further, in market environments where interest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rates are rising, issuers may be less willing or able to make principal and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest payments on fixed-income investments when due. There is the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">risk that the income generated by investments may not keep pace with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">inflation. Actions by governments and central banking authorities can </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">result in increases or decreases in interest rates. Periods of higher </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">inflation could cause such authorities to raise interest rates, which may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">adversely affect a Fund and its investments.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Further, fixed income securities with longer durations tend to be more </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sensitive to changes in interest rates, usually making them more volatile. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Duration is a measure used to determine the sensitivity of a security’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">price to changes in interest rates that incorporates a security’s yield, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">coupon, final maturity and call features, among other characteristics. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Duration is useful primarily as a measure of the sensitivity of a fixed </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">income security’s market price to interest rate (i.e., yield) movements. All </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other things remaining equal, for each one percentage point increase in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest rates, the value of a portfolio of fixed income investments would </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">generally be expected to decline by one percent for every year of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">portfolio’s average duration above zero. For example, the value of a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">portfolio of fixed income securities with an average duration of eight </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">years would generally be expected to decline by approximately 8% if </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest rates rose by one percentage point.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Variable and floating rate securities may decline in value if their interest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rates do not rise as much, or as quickly, as interest rates in general. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Conversely, floating rate securities will not generally increase in value if </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest rates decline. Inverse floating rate securities may decrease in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">value if interest rates increase. Inverse floating rate securities may also </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">exhibit greater price volatility than a fixed rate obligation with similar </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">credit quality. When the Fund holds variable or floating rate securities, a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">decrease (or, in the case of inverse floating rate securities, an increase) </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in market interest rates will adversely affect the income received from </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such securities and the NAV of the Fund’s shares.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">During periods of very low or negative interest rates, the Fund may be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">unable to maintain positive returns. Very low or negative interest rates </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may magnify interest rate risk. Changing interest rates, including rates </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">that fall below zero, may have unpredictable effects on markets, may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">result in heightened market volatility and may detract from Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">performance to the extent the Fund is exposed to such interest rates.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Measures such as average duration may not accurately reflect the true </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest rate sensitivity of the Fund. This is especially the case if the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">consists of securities with widely varying durations. Therefore, if the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund has an average duration that suggests a certain level of interest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rate risk, the Fund may in fact be subject to greater interest rate risk </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">than the average would suggest. This risk is greater to the extent the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund uses leverage or derivatives in connection with the management </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of the Fund.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Convexity is an additional measure used to understand a security's or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund's interest rate sensitivity. Convexity measures the rate of change of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">duration in response to changes in interest rates. With respect to a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">security’s price, a larger convexity (positive or negative) may imply more </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">dramatic price changes in response to changing interest rates. Convexity </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may be positive or negative. Negative convexity implies that interest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rate increases result in increased duration, meaning increased sensitivity </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in prices in response to rising interest rates. Thus, securities with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">negative convexity, which may include bonds with traditional call </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">features and certain mortgage-backed securities, may experience </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">greater losses in periods of rising interest rates. Accordingly, if the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">holds such securities, the Fund may be subject to a greater risk of losses </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in periods of rising interest rates.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Rising interest rates may result in a decline in value of the Fund’s fixed </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">income investments and in periods of volatility. Also, when interest rates </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rise, issuers are less likely to refinance existing debt securities, causing </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the average life of such securities to extend. Further, while U.S. bond </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">markets have steadily grown over the past three decades, dealer </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">“market making” ability has remained relatively stagnant. As a result, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">dealer inventories of certain types of bonds and similar instruments, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which provide a core indication of the ability of financial intermediaries </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to “make markets,” are at or near historic lows in relation to market </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">size. Because market makers provide stability to a market through their </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">intermediary services, a significant reduction in dealer inventories could </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">potentially lead to decreased liquidity and increased volatility in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">fixed income markets. Such issues may be exacerbated during periods of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">economic uncertainty. All of these factors, collectively and/or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">individually, could cause the Fund to lose value.</div></div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Regulatory Risk — LIBOR Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Certain instruments in which the Fund may invest have relied or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">continue to rely in some fashion upon LIBOR. LIBOR was traditionally an </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">average interest rate, determined by the ICE Benchmark Administration, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">that banks charge one another for the use of short-term money. On </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">March 5, 2021, the FCA, the United Kingdom’s financial regulatory body </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and regulator of LIBOR, publicly announced that all U.S. Dollar LIBOR </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">settings will either cease to be provided by any administrator or will no </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">longer be representative (i) immediately after December 31, 2021 for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">one-week and two-month U.S. Dollar LIBOR settings and (ii) </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">immediately after June 30, 2023 for the remaining U.S. Dollar LIBOR </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">settings. As of January 1, 2022, as a result of supervisory guidance from </div></div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">U.S. regulators, U.S. regulated entities have generally ceased entering </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">into new LIBOR contracts with limited exceptions. Publication of all </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Japanese yen and the one- and six-month sterling LIBOR settings have </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">ceased, and while publication of the three-month Sterling LIBOR setting </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">will continue through at least the end of March 2024 on the basis of a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">changed methodology (known as “synthetic LIBOR”), this rate has been </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">designated by the FCA as unrepresentative of the underlying market </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">that it seeks to measure and is solely available for use in legacy </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">transactions. Certain bank-sponsored committees in other jurisdictions, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">including Europe, the United Kingdom, Japan and Switzerland, have </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">selected alternative reference rates denominated in other currencies. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Although the transition process away from LIBOR for many instruments </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">has been completed, some LIBOR use is continuing and there are </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">potential effects related to the transition away from LIBOR or continued </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">use of LIBOR on the Fund, or on certain instruments in which the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">invests, which can be difficult to ascertain, and may vary depending on </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">factors that include, but are not limited to: (i) existing fallback or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">termination provisions in individual contracts and (ii) whether, how, and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">when industry participants adopt new reference rates for affected </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instruments. So-called “tough legacy” contracts have LIBOR interest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rate provisions with no fallback provisions contemplating a permanent </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">discontinuation of LIBOR, inadequate fallback provisions or fallback </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">provisions which may not effectively result in a transition away from </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">LIBOR prior to LIBOR’s planned replacement date. On March 15, 2022, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Adjustable Interest Rate (LIBOR) Act was signed into law. This law </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">provides a statutory fallback mechanism on a nationwide basis to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">replace LIBOR with a benchmark rate that is selected by the Board of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Governors of the Federal Reserve System based on SOFR for tough </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">legacy contracts. On February 27, 2023, the Federal Reserve System’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">final rule in connection with this law became effective, establishing </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">benchmark replacements based on SOFR and Term SOFR (a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">forward-looking measurement of market expectations of SOFR implied </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">from certain derivatives markets) for applicable tough legacy contracts </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">governed by U.S. law. In addition, the FCA has announced that it will </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">require the publication of synthetic LIBOR for the one-month, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">three-month and six-month U.S. Dollar LIBOR settings after June 30, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">2023 through at least September 30, 2024. Certain of the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments may involve individual tough legacy contracts which may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">be subject to the Adjustable Interest Rate (LIBOR) Act or synthetic LIBOR </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and no assurances can be given that these measures will have had the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">intended effects. Moreover, certain aspects of the transition from LIBOR </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">have relied or will continue to rely on the actions of third-party market </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">participants, such as clearing houses, trustees, administrative agents, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">asset servicers and certain service providers; PIMCO cannot guarantee </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the performance of such market participants and any failure on the part </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of such market participants to manage their part of the LIBOR transition </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">could impact the Fund. The transition of investments from LIBOR to a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">replacement rate as a result of amendment, application of existing </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">fallbacks, statutory requirements or otherwise may also result in a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">reduction in the value of certain instruments held by the Fund or a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">reduction in the effectiveness of related Fund transactions such as </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">hedges. In addition, an instrument’s transition to a replacement rate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">could result in variations in the reported yields of the Fund that holds </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such instrument. Any such effects of the transition away from LIBOR, as </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">well as other unforeseen effects, could result in losses to the Fund.</div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Derivatives Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The use of derivative and other similar instruments (referred to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">collectively as “derivatives”) involves risks different from, and possibly </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">greater than, the risks associated with investing directly in securities and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other traditional investments. Derivatives are subject to a number of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">risks, such as liquidity risk (which may be heightened for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">highly-customized derivatives), interest rate risk, market risk, credit risk, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">leveraging risk, counterparty risk (including credit), operational risk, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">legal risk, tax risk and management risk, as well as risks arising from </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">changes in applicable requirements, risks arising from margin </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">requirements and risks arising from mispricing or valuation complexity. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">They also involve the risk of unfavorable or ambiguous documentation </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and the risk that changes in the value of the derivative may not </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">correlate perfectly with the underlying asset, rate or index. If the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">invests in a derivative instrument, it could lose more than the principal </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">amount invested and derivatives may increase the volatility of the Fund, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">especially in unusual or extreme market conditions. The Fund may be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">required to hold additional cash or sell other investments in order to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">obtain cash to close out a position and changes in the value of a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">derivative may also create margin delivery or settlement payment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">obligations for the Fund. Also, suitable derivative transactions may not </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">be available in all circumstances and there can be no assurance that the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund will engage in these transactions to reduce exposure to other risks </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">when that would be beneficial. The Fund’s use of derivatives may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">increase or accelerate the amount of taxes payable by Common </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Shareholders.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Participation in the markets for derivative instruments involves </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment risks and transaction costs to which the Fund may not be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">subject absent the use of these strategies.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Non-centrally-cleared over-the-counter (“OTC”) derivatives are also </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">subject to the risk that a counterparty to the transaction will not fulfill </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">its contractual obligations to the other party, as many of the protections </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">afforded to centrally-cleared derivatives might not be available for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">non-centrally-cleared OTC derivatives transactions. For derivatives </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">traded on an exchange or through a central counterparty, credit risk </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">resides with the Fund’s clearing broker, or the clearinghouse itself.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">It may not be possible for the Fund to modify, terminate, or offset the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s obligations or the Fund’s exposure to the risks associated with a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">derivative transaction prior to its scheduled termination or maturity </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">date, which may create a possibility of increased volatility and/or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">decreased liquidity to the Fund. Hedges are sometimes subject to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">imperfect matching between the derivative and the underlying </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instrument, and there can be no assurance that the Fund’s hedging </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">transactions will be effective. Because the markets for certain derivative </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instruments (including markets located in foreign countries) are </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">relatively new and still developing, appropriate derivative transactions </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may not be available in all circumstances for risk management or other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">purposes. Upon the expiration of a particular contract, a Fund may wish </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to retain its position in the derivative instrument by entering into a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">similar contract, but may be unable to do so if the counterparty to the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">original contract is unwilling to enter into the new contract and no other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">appropriate counterparty can be found. When such markets are </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">unavailable, a Fund will be subject to increased liquidity and investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">risk.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">When a derivative is used as a hedge against a position that the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">holds, any loss generated by the derivative generally should be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">substantially offset by gains on the hedged investment, and vice versa.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The regulation of the derivatives markets has increased over the past </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">several years, and additional future regulation of the derivatives markets </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may make derivatives more costly, may limit the availability or reduce </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the liquidity of derivatives, or may otherwise adversely affect the value </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or performance of derivatives. Any such adverse future developments </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">could impair the effectiveness or raise the costs of a Fund’s derivative </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">transactions, impede the employment of the Fund’s derivatives </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">strategies, or adversely affect the Fund’s performance and cause the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund to lose value.</div></div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Leverage Risk</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;"> </div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund’s use of leverage, if any, creates the opportunity for increased </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Common Share net income, but also creates special risks for Common </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Shareholders (including an increased risk of loss). To the extent used, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">there is no assurance that the Fund’s leveraging strategies will be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">successful. Leverage is a speculative technique that may expose the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund to greater risk and increased costs. The Fund’s assets attributable </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to leverage will be invested in accordance with the Fund’s investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">objectives and policies. Interest expense payable by the Fund with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">respect to derivatives and other forms of leverage, and dividends </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">payable with respect to any Preferred Shares outstanding will generally </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">be based on shorter-term interest rates that would be periodically reset. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">So long as the Fund’s portfolio investments provide a higher rate of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">return (net of applicable Fund expenses) than the interest expenses and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other costs to the Fund of such leverage, the investment of the proceeds </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">thereof will generate more income than will be needed to pay the costs </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of the leverage. If so, and all other things being equal, the excess may be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">used to pay higher dividends to Common Shareholders than if the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">were not so leveraged. If, however, shorter-term interest rates rise </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">relative to the rate of return on the Fund’s portfolio, the interest and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other costs to the Fund of leverage could exceed the rate of return on </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the debt obligations and other investments held by the Fund, thereby </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">reducing return to Common Shareholders. Leveraging transactions </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">pursued by the Fund may increase its duration and sensitivity to interest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rate movements. In addition, fees and expenses of any form of leverage </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">used by the Fund will be borne entirely by the Common Shareholders </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(and not by preferred shareholders) and will reduce the investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">return of the Common Shares. Therefore, there can be no assurance that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund’s use of leverage will result in a higher yield on the Common </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Shares, and it may result in losses. In addition, any Preferred Shares </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">issued by the Fund are expected to pay cumulative dividends, which may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">tend to increase leverage risk.</div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Leverage creates several major types of risks for Common Shareholders, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">including:</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the likelihood of greater volatility of NAV of Common Shares, and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of the investment return to Common Shareholders, than a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">comparable portfolio without leverage;</div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the possibility either that Common Share dividends will fall if the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest and other costs of leverage rise, or that dividends paid on </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Common Shares will fluctuate because such costs vary over time; </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the effects of leverage in a declining market or a rising interest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rate environment, as leverage is likely to cause a greater decline in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the NAV of the Common Shares than if the Fund were not </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">leveraged and may result in a greater decline in the market value </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of the Common Shares.</div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">In addition, the counterparties to the Fund’s leveraging </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">transactions and any preferred shareholders of the Fund will have </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">priority of payment over the Fund’s Common Shareholders.</div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Reverse repurchase agreements involve the risks that the interest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">income earned on the investment of the proceeds will be less than the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest expense and Fund expenses associated with the repurchase </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">agreement, that the market value of the securities sold by the Fund may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">decline below the price at which the Fund is obligated to repurchase </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such securities and that the securities may not be returned to the Fund. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">There is no assurance that reverse repurchase agreements can be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">successfully employed. Dollar roll transactions involve the risk that the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">market value of the securities the Fund is required to purchase may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">decline below the agreed upon repurchase price of those securities. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Successful use of dollar rolls/buybacks may depend upon the Investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Manager’s ability to correctly predict interest rates and prepayments. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">There is no assurance that dollar rolls/buybacks can be successfully </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">employed. In connection with reverse repurchase agreements and dollar </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rolls/buybacks, the Fund will also be subject to counterparty risk with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">respect to the purchaser of the securities. If the broker/dealer to whom </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund sells securities becomes insolvent, the Fund’s right to purchase </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or repurchase securities may be restricted.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund may engage in total return swaps, reverse repurchases, loans </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of portfolio securities, short sales and when-issued, delayed delivery and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">forward commitment transactions, credit default swaps, basis swaps </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and other swap agreements, purchases or sales of futures and forward </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">contracts (including foreign currency exchange contracts), call and put </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">options and/or other derivatives. The Fund’s use of such transactions </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">gives rise to associated leverage risks described above, and may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">adversely affect the Fund’s income, distributions and total returns to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Common Shareholders. To the extent that any offsetting positions do </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">not behave in relation to one another as expected, the Fund may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">perform as if it is leveraged through use of these derivative strategies.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Any total return swaps, reverse repurchases, loans of portfolio securities, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">short sales and when-issued, delayed delivery and forward commitment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">transactions, credit default swaps, basis swaps and other swap </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">agreements, purchases or sales of futures and forward contracts </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(including foreign currency exchange contracts), call and put options or </div></div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other derivatives by the Fund or counterparties to the Fund’s other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">leveraging transactions, if any, would have seniority over the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Common Shares.</div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Additional Risks Relating to the Fund’s Preferred Shares</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;"> </div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Because the Fund has issued Preferred Shares, it is required to satisfy </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">certain asset coverage requirements, including those imposed by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">regulatory and rating agency requirements. Accordingly, any decline in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the net asset value of the Fund’s investments could result in the risk that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund will fail to meet its asset coverage requirements for such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Preferred Shares or the risk of the Preferred Shares being downgraded </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">by a rating agency. In an extreme case, the Fund’s current investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">income might not be sufficient to meet the dividend requirements on </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">any Preferred Shares outstanding. In order to address these types of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">events, the Fund might need to dispose of investments in order to fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">a redemption of some or all of its Preferred Shares. Dispositions at times </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of adverse economic conditions may result in a loss to the Fund. At </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other times, these dispositions may result in gain at the Fund level and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">thus in additional taxable distributions to Common Shareholders. See </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">“Certain U.S. Federal Income Tax Considerations” for more information. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Preferred Shares have seniority over the Fund’s Common Shares.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund pays (and the Common Shareholders bear) all costs and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">expenses relating to the issuance and ongoing maintenance of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Preferred Shares. In addition, holders of Preferred Shares issued by the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund have complete priority over Common Shareholders in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">distribution of the Fund’s assets. Furthermore, Preferred Shareholders, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">voting separately as a single class, have the right to elect two members </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of the Board at all times and to elect a majority of the trustees in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">event two full years’ dividends on the Preferred Shares are unpaid, and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">also have separate class voting rights on certain matters. Accordingly, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Preferred Shareholders may have interests that differ from those of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Common Shareholders, and may at times have disproportionate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">influence over the Fund’s affairs.</div></div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Potential Conflicts of Interest Risk – Allocation of Investment </div></div><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Opportunities</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;"> </div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Investment Manager and its affiliates are involved worldwide with a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">broad spectrum of financial services and asset management activities </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and may engage in the ordinary course of business in activities in which </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">their interests or the interests of their clients may conflict with those of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund. The Investment Manager may provide investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">management services to other funds and discretionary managed </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">accounts that follow an investment program similar to that of the Fund. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Subject to the requirements of the 1940 Act, the Investment Manager </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">intends to engage in such activities and may receive compensation from </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">third parties for its services. The results of the Fund’s investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">activities may differ from those of the Fund’s affiliates, or another </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">account managed by the Fund’s affiliates, and it is possible that the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund could sustain losses during periods in which one or more of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s affiliates and/or other accounts managed by the Investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Manager or its affiliates, including proprietary accounts, achieve profits </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">on their trading.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div> <div style="line-height:12.0pt;text-align:left"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Geopolitical Conflicts</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The occurrence of geopolitical conflicts, war or terrorist activities could </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">have adverse impacts on markets in various and unpredictable ways. For </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">example, following Russia’s large-scale invasion of Ukraine in February </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">2022, Russia, and other countries, persons and entities that were </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">viewed as having provided material aid to Russia’s aggression against </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Ukraine, became the subject of economic sanctions and import and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">export controls imposed by countries throughout the world, including </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the United States. Such measures have had and may continue to have </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">an adverse effect on the Russian, Belarusian and other securities and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">economies. The extent, duration and impact of geopolitical conflicts and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">related market impacts are difficult to ascertain, but could be significant </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and could have significant adverse effects on regional and global </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">economies and the markets for certain securities and commodities, such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">as oil and natural gas, as well as other sectors, and on the Fund's </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments.</div></div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Cyber Security Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">As the use of technology, including cloud-based technology, has </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">become more prevalent in the course of business, the Fund is potentially </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">more susceptible to operational and information security risks resulting </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">from breaches in cyber security. A breach in cyber security refers to both </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">intentional and unintentional cyber events from outside threat actors or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">internal resources that may, among other things, cause the Fund to lose </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">proprietary information, suffer data corruption and/or destruction, lose </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">operational capacity, result in the unauthorized release or other misuse </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of confidential information, or otherwise disrupt normal business </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">operations. Cyber security breaches may involve unauthorized access to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund’s digital information systems (e.g., through “hacking” or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">malicious software coding), and may come from multiple sources, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">including outside attacks such as denial-of-service attacks (i.e., efforts to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">make network services unavailable to intended users) or cyber extortion, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">including exfiltration of data held for ransom and/or “ransomware” </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">attacks that renders systems inoperable until ransom is paid, or insider </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">actions (e.g., intentionally or unintentionally harmful acts of PIMCO </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">personnel). In addition, cyber security breaches involving the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">third party service providers (including but not limited to advisers, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sub-advisers, administrators, transfer agents, custodians, vendors, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">suppliers, distributors and other third parties), trading counterparties or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">issuers in which the Fund invests can also subject the Fund to many of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the same risks associated with direct cyber security breaches or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">extortion of company data. PIMCO's use of cloud-based service </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">providers could heighten or change these risks. In addition, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">work-from-home arrangements by the Fund, the Investment Manager or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">their service providers could increase all of the above risks, create </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">additional data and information accessibility concerns, and make the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund, the Investment Manager or their service providers susceptible to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">operational disruptions, any of which could adversely impact their </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">operations.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Cyber security failures or breaches may result in financial losses to the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund and its shareholders. For example, cyber security failures or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">breaches involving trading counterparties or issuers in which the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">invests could adversely impact such counterparties or issuers and cause </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund’s investment to lose value. These failures or breaches may also </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">result in disruptions to business operations, potentially resulting in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">financial losses; interference with the Fund’s ability to calculate its NAV, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">process shareholder transactions or otherwise transact business with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">shareholders; impediments to trading; violations of applicable privacy </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and other laws; regulatory fines; penalties; third-party claims in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">litigation; reputational damage; reimbursement or other compensation </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">costs; additional compliance and cyber security risk management costs </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and other adverse consequences. In addition, substantial costs may be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">incurred in order to prevent any cyber incidents in the future.</div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Like with operational risk in general, the Fund has established business </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">continuity plans and risk management systems designed to reduce the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">risks associated with cyber security. However, there are inherent </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">limitations in these plans and systems, including that certain risks may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">not have been identified, in large part because different or unknown </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">threats may emerge in the future. As such, there is no guarantee that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such efforts will succeed, especially because the Fund does not directly </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">control the cyber security systems of issuers in which the Fund may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">invest, trading counterparties or third-party service providers to the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund. Such entities have experienced cyber attacks and other attempts </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to gain unauthorized access to systems from time to time, and there is </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">no guarantee that efforts to prevent or mitigate the effects of such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">attacks or other attempts to gain unauthorized access will be successful. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">There is also a risk that cyber security breaches may not be detected. The </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund and its shareholders may suffer losses as a result of a cyber </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">security breach related to the Fund, its service providers, trading </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">counterparties or the issuers in which the Fund invests.</div></div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Non-U.S. Investment Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">PIMCO may invest in real estate located outside of the United States </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and real estate debt issued in, and/or backed by real estate in, countries </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">outside the United States. Non-U.S. real estate and real estate-related </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments involve certain factors not typically associated with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investing in real estate and real estate-related investments in the U.S., </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">including risks relating to (i) currency exchange matters, including </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">fluctuations in the rate of exchange between the U.S. dollar and the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">various non-U.S. currencies in which such investments are denominated, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and costs associated with conversion of investment principal and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">income from one currency into another; (ii) differences in conventions </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">relating to documentation, settlement, corporate actions, stakeholder </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rights and other matters; (iii) differences between U.S. and non-U.S. real </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">estate markets, including potential price volatility in and relative </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">illiquidity of some non-U.S. markets; (iv) the absence of uniform </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">accounting, auditing and financial reporting standards, practices and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">disclosure requirements and differences in government supervision and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">regulation; (v) certain economic, social and political risks, including </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">potential exchange-control regulations, potential restrictions on </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">non-U.S. investment and repatriation of capital, the risks associated with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">political, economic or social instability, including the risk of sovereign </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">defaults, regulatory change, and the possibility of expropriation or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">confiscatory taxation or the imposition of withholding or other taxes on </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">dividends, interest, capital gains, other income or gross sale or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">disposition proceeds, and adverse economic and political developments; </div></div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(vi) the possible imposition of non-U.S. taxes on income and gains and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">gross sales or other proceeds recognized with respect to such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments; (vii) differing and potentially less well-developed or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">well-tested corporate laws regarding stakeholder rights, creditors’ rights </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(including the rights of secured parties), fiduciary duties and the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">protection of investors; (viii) different laws and regulations including </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">differences in the legal and regulatory environment or enhanced legal </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and regulatory compliance; (ix) political hostility to investments by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">foreign investors; (x) less publicly available information; (xi) obtaining or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">enforcing a court judgement abroad; (xii) restrictions on foreign </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment in other jurisdictions; and (xiii) difficulties in effecting </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">repatriation of capital. Furthermore, while PIMCO may have the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">capacity, but not the obligation, to mitigate such additional risks, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">including through the utilization of certain foreign exchange hedging </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instruments, there is no guarantee that PIMCO will be successful in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mitigating such risks and in turn may introduce additional risks and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">expenses linked to such efforts.</div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Property Manager Risk</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;"> </div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Investment Manager hires property managers to manage the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">properties and leasing agents to lease vacancies in the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">properties. These property managers may be the Fund’s affiliates or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">partners in joint ventures that the Fund enters into. The property </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">managers have significant decision-making authority with respect to the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">management of the Fund’s properties. The Fund’s ability to direct and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">control how the Fund’s properties are managed on a day-to-day basis </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may be limited because PIMCO engages other parties to perform this </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">function. Thus, the success of the Fund’s business may depend in large </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">part on the ability of the Fund’s property managers to manage the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">day-to-day operations and the ability of the Fund’s leasing agents to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">lease vacancies in the Fund’s properties. Any adversity experienced by, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or problems in the Fund’s relationship with, the Fund’s property </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">managers or leasing agents could adversely impact the operation and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">profitability of the Fund’s properties.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Privacy and Data Security Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The GLBA and other laws limit the disclosure of certain non-public </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">personal information about a consumer to non- affiliated third parties </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and require financial institutions to disclose certain privacy policies and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">practices with respect to information sharing with both affiliates and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">non- affiliated third parties. Many states and a number of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">non-U.S. jurisdictions have enacted privacy and data security laws </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">requiring safeguards on the privacy and security of consumers’ </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">personally identifiable information. Other laws deal with obligations to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">safeguard and dispose of private information in a manner designed to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">avoid its dissemination. Privacy rules adopted by the U.S. Federal Trade </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Commission and SEC implement the GLBA and other requirements and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">govern the disclosure of consumer financial information by certain </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">financial institutions, ranging from banks to private investment funds. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">U.S. platforms following certain models generally are required to have </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">privacy policies that conform to these GLBA and other requirements. In </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">addition, such platforms typically have policies and procedures intended </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to maintain platform participants’ personal information securely and </div></div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">dispose of it properly. The Fund generally does not intend to obtain or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">hold borrowers’ non-public personal information, and the Fund has </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">implemented procedures reasonably designed to prevent the disclosure </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of borrowers’ non-public personal information to the Fund. However, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">service providers to the Fund, including their custodians and the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">platforms acting as loan servicers for the Fund, may obtain, hold or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">process such information. The Fund cannot guarantee the security of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">non-public personal information in the possession of such a service </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">provider and cannot guarantee that service providers have been and will </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">continue to comply with the GLBA, other data security and privacy laws </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and any other related regulatory requirements. Violations of the GLBA </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and other laws could subject the Fund to litigation and/or fines, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">penalties or other regulatory action, which, individually or in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">aggregate, could have an adverse effect on the Fund. The Fund may also </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">face regulations related to privacy and data security in the other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">jurisdictions in which the Fund invests.</div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Regulatory Changes Risk</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Financial entities, such as investment companies and investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">advisers, are generally subject to extensive government regulation and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">intervention. Government regulation and/or intervention may change </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the way the Fund is regulated, affect the expenses incurred directly by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund and the value of its investments, and limit and/or preclude the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s ability to achieve its investment objectives. Government </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">regulation may change frequently and may have significant adverse </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">consequences. The Fund and the Investment Manager have historically </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">been eligible for exemptions from certain regulations. However, there is </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">no assurance that the Fund and the Investment Manager will continue </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to be eligible for such exemptions. Actions by government entities may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">also impact certain instruments in which the Fund invests and reduce </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">market liquidity and resiliency.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Moreover, government regulation may have unpredictable and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">unintended effects. Legislative or regulatory actions to address </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">perceived liquidity or other issues in fixed income markets generally, or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in particular markets such as the municipal securities market, may alter </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or impair the Fund’s ability to pursue its investment objectives or utilize </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">certain investment strategies and techniques.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">While there continues to be uncertainty about the full impact of these </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and other regulatory changes, it is the case that the Fund will be subject </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to a more complex regulatory framework, and may incur additional </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">costs to comply with new requirements as well as to monitor for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">compliance in the future. Actions by governmental entities may also </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">impact certain instruments in which the Fund invests and reduce market </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">liquidity and resiliency. For example, the Fund’s investments (including, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">but not limited to, repurchase agreements, collateralized loan </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">obligations and mortgage-backed securities), payment obligations and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">financing terms may rely in some fashion on LIBOR. For more </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">information related to the LIBOR transition, see “Principal Risks of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund - Regulatory Risk – LIBOR”.</div></div></div> <div style="line-height:12.0pt;text-align:left"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Risk Retention Investment Risk</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund may invest in risk retention tranches of CMBS or other eligible </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securitizations, if any, which are eligible residual interests held by the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sponsors of such securitizations pursuant to the final rules </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">implementing the credit risk retention requirements of the “U.S. Risk </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Retention Rules.” In the case of CMBS transactions, for example, the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">U.S. Risk Retention Rules permit all or a portion of the retained credit </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">risk associated with certain securitizations (i.e., retained risk) to be held </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">by a “third party purchaser,” such as the Fund, if, among other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">requirements, the third-party purchaser holds its retained interest, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">unhedged, for at least five years following the closing of the CMBS </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">transaction, after which it is entitled to transfer its interest in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securitization to another person that meets the requirements for a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">third-party purchaser. Even after the required holding period has </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">expired, due to the generally illiquid nature of such investments, no </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">assurance can be given as to what, if any, exit strategies will ultimately </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">be available for any given position.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">In addition, there is limited guidance on the application of the final </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">U.S. Risk Retention Rules to specific securitization structures. There can </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">be no assurance that the applicable federal agencies charged with the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">implementation of the final U.S. Risk Retention Rules (the Federal </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Deposit Insurance Corporation, the Comptroller of the Currency, the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Federal Reserve Board, the SEC, the Department of Housing and Urban </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Development, and the Federal Housing Finance Agency) could not take </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">positions in the future that differ from the interpretation of such rules </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">taken or embodied in such securitizations, or that the final U.S. Risk </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Retention Rules will not change.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Furthermore, in situations where the Fund invests in risk retention </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">tranches of securitizations structured by third parties, the Fund may be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">required to execute one or more letters or other agreements, the exact </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">form and nature of which will vary under which it will make certain </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">undertakings designed to ensure such securitization complies with the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">final U.S. Risk Retention Rules. Such Risk Retention Agreements may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">include a variety of representations, warranties, covenants and other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">indemnities, each of which may run to various transaction parties. If the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund breaches any undertakings in any Risk Retention Agreement, it will </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">be exposed to claims by the other parties thereto, including for any </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">losses incurred as a result of such breach, which could be significant </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and exceed the value of the Fund’s investments.</div></div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Risks of Investing in Private Real Estate Investment Funds</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">To the extent the Fund invests in private real estate investment funds, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Investment Manager will have limited or no control over the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment decisions made by any such private real estate investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">funds. Investments in private real estate investment funds are illiquid, as </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interests are not listed for trading on any securities exchange and there </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">is little to no secondary market for trading such investments. In addition, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Investment Manager’s ability to withdraw an investment or allocate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">away from the private real estate investment funds, may be constrained </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">by limitations imposed by the private real estate investment funds. The </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">illiquid nature of private fund investments may prevent the Fund from </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">actively managing its portfolio away from underperforming private real </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">estate investment funds or in uncertain markets.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Under the terms of the limited partnership agreements or limited </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">liability company operating agreements, as applicable, of many of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">private real estate investment funds in which the Fund may invest, the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund will make commitments to make capital contributions in specified </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">maximum amounts to such private real estate investment funds (each, a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">“Capital Contribution”) based on notices provided by the private real </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">estate investment funds (each, a “Capital Call”). These Capital </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Contributions will be made from time to time generally on an as-needed </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">basis rather than upfront. The Capital Contributions would be used by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the applicable private real estate investment funds to pay specified </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">expenses of the private real estate investment funds and to make </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments in a manner consistent with the investment strategy or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">guidelines established by the applicable private real estate investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">funds. As a result, the Fund, as an investor in a private real estate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment fund, may be required to make a Capital Contribution to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such private real estate investment fund without the benefit of an </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">extensive notice period after a Capital Call and without regard to the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s current financial condition and availability of cash to make such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Capital Contribution.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The limited partnership agreement or limited liability company operating </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">agreement, as applicable, of the applicable private real estate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment funds may contain detailed provisions regarding the failure </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of an investor in such private real estate investment funds to honor its </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Capital Contribution obligation. The consequences that may be imposed </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">upon a defaulting investor in such private real estate investment funds </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">include interest on overdue amounts, a loss of voting rights in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">private real estate investment funds as long as the default is continuing, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and (in many cases) a forced sale or forfeiture of the defaulting </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investor’s interest in the private real estate investment funds in favor of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the other investors in such private real estate investment funds.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The private real estate investment funds will not be registered as </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment companies under the 1940 Act and, therefore, the Fund will </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">not be able to avail itself of the protections of the 1940 Act with respect </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to the private real estate investment funds, including certain corporate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">governance protections, such as the requirement to have a majority </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Independent Directors serving on the board, statutory protections </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">against self-dealings and joint transactions by the institutional asset </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">managers and their affiliates, and leverage limitations. Furthermore, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">some of the institutional asset managers for the private real estate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment funds may not be registered under the Investment Advisers </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Act of 1940 (“Advisers Act”), meaning that the Fund will not be able to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rely on the statutory protections of the Advisers Act.</div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The valuation of the Fund’s investments in private real estate investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">funds will be determined by the institutional asset managers of those </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">private real estate investment funds, which valuation may not be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">accurate or reliable. While the valuation of the Fund’s publicly traded </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities are more readily ascertainable, the Fund’s ownership interests </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in private real estate investment funds are not publicly traded and the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund will depend on appraisers, service providers, and the institutional </div></div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">asset manager to a private real estate investment fund to provide a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">valuation, or assistance with a valuation, of those investments. Any such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">valuation is a subjective analysis of the fair market value of an asset and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">requires the use of techniques that are costly and time-consuming and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">ultimately provide no more than an estimate of value. Moreover, the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">valuation of the Fund’s investment in a private real estate investment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">funds, as provided by an institutional asset manager for its assets as of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">a specific date, may vary from the actual sales price of its assets or any </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">secondary market value price for the underlying fund’s interest, if such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments were sold to a third party.</div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Risks Related to the Fund’s REIT Status</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;"> </div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">If the Fund does not qualify as a REIT, the Fund will be subject to tax as </div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">a regular corporation and could face a substantial tax liability.</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund expects to operate so as to qualify as a REIT under the Code. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">However, qualification as a REIT involves the application of highly </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">technical and complex Code provisions for which only a limited number </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of judicial or administrative interpretations exist. Notwithstanding the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">availability of cure provisions in the Code, various compliance </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">requirements could be failed and could jeopardize the Fund’s REIT </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">status. Furthermore, new tax legislation, administrative guidance or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">court decisions, in each instance potentially with retroactive effect, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">could make it more difficult or impossible for the Fund to qualify as a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">REIT. If the Fund fails to qualify as a REIT in any tax year, then:</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund would be taxed as a regular domestic corporation, which </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">under current laws, among other things, means being unable to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">deduct distributions to Common Shareholders in computing </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">taxable income and being subject to federal income tax on the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s taxable income at regular corporate income tax rates;</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">any resulting tax liability could be substantial and could have a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">material adverse effect on the Fund’s book value;</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">unless the Fund were entitled to relief under applicable statutory </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">provisions, the Fund would be required to pay taxes, and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">therefore, the Fund’s cash available for distribution to Common </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Shareholders would be reduced for each of the years during </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which the Fund did not qualify as a REIT and for which the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">had taxable income; and</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12.0pt;margin-left:10pt;text-align:left;width:5.56pt"><div style="color: rgb(30, 130, 151); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">■</div></div><div style="float:left;line-height:12.0pt;margin-left:6.44pt;text-align:left;width:233.00pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund generally would not be eligible to requalify as a REIT for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the subsequent four full taxable years.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">To maintain the Fund’s REIT status, the Fund may have to borrow funds </div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">on a short-term basis during unfavorable market conditions.</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">To qualify as a REIT, the Fund generally must distribute annually to the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s Common Shareholders a minimum of 90% of the Fund’s net </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">taxable income, determined without regard to the dividends-paid </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">deduction and excluding net capital gains. The Fund will be subject to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">regular corporate income taxes on any undistributed REIT taxable </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">income each year. Additionally, the Fund will be subject to a 4% </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">nondeductible excise tax on any amount by which distributions paid by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund in any calendar year are less than the sum of 85% of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s ordinary income, 95% of the Fund’s capital gain net income and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">100% of the Fund’s undistributed income from previous years. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Payments to the Fund’s Common Shareholders under the Fund’s share </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">repurchase plan will not be taken into account for purposes of these </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">distribution requirements. If the Fund does not have sufficient cash to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">make distributions necessary to preserve the Fund’s REIT status for any </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">year or to avoid taxation, the Fund may be forced to borrow funds or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sell assets even if the market conditions at that time are not favorable </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">for these borrowings or sales. These options could increase the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">costs or reduce the Fund’s equity.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">Compliance with REIT requirements may cause the Fund to forego </div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">otherwise attractive opportunities, which may hinder or delay the Fund’s </div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">ability to meet the Fund’s investment objectives and reduce overall </div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">return for the Fund's Common Shareholders.</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">To qualify as a REIT, the Fund is required at all times to satisfy tests </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">relating to, among other things, the sources of the Fund’s income, the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">nature and diversification of the Fund’s assets, the ownership of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s stock and the amounts the Fund distributes to Fund’s Common </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Shareholders. Compliance with the REIT requirements may impair the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s ability to operate solely on the basis of maximizing profits. For </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">example, the Fund may be required to make distributions to Common </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Shareholders at disadvantageous times or when the Fund does not have </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">funds readily available for distribution.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">Compliance with REIT requirements may force the Fund to liquidate or </div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">restructure otherwise attractive investments.</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">To qualify as a REIT, at the end of each calendar quarter, at least 75% of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the value of the Fund’s assets must consist of cash, cash items, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">government securities and qualified real estate assets. The remainder of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund’s investments in securities (other than qualified real estate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">assets and government securities) generally cannot include more than </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">10% of the voting securities (other than securities that qualify for the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">straight debt safe harbor) of any one issuer or more than 10% of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">value of the outstanding securities of more than any one issuer unless </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">PIMCO and such issuer jointly elect for such issuer to be treated as a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">“taxable REIT subsidiary” under the Code. Debt will generally meet the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">“straight debt” safe harbor if the debt is a written unconditional </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">promise to pay on demand or on a specified date a certain sum of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">money, the debt is not convertible, directly or indirectly, into stock, and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the interest rate and the interest payment dates of the debt are not </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">contingent on the profits, the borrower’s discretion, or similar factors. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Additionally, no more than 5% of the value of the Fund’s assets (other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">than government securities and qualified real estate assets) can consist </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of the securities of any one issuer, and no more than 20% of the value </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of the Fund’s assets may be represented by securities of one or more </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">taxable REIT subsidiaries. If the Fund fails to comply with these </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">requirements at the end of any calendar quarter, the Fund must dispose </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of a portion of the Fund’s assets within 30 days after the end of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">calendar quarter or qualify for certain statutory relief provisions in order </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to avoid losing the Fund’s REIT qualification and suffering adverse tax </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">consequences. In order to satisfy these requirements and maintain the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s qualification as a REIT, the Fund may be forced to liquidate </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">assets from the Fund’s portfolio or not make otherwise attractive </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments. These actions could have the effect of reducing the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">income and amounts available for distribution to the Fund’s Common </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Shareholders.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">The Fund’s Declaration of Trust does not permit any person or group to </div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">own more than 9.8% in value or number of shares, whichever is more </div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">restrictive, of the Fund’s outstanding Common Shares or of the Fund’s </div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">outstanding capital stock of all classes or series, and attempts to acquire </div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">the Fund’s Common Shares or the Fund’s capital stock of all other </div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">classes or series in excess of these 9.8% limits would not be effective </div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">without an exemption (prospectively or retroactively) from these limits </div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">by the Fund’s Board of Trustees.</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">For the Fund to qualify as a REIT under the Code, not more than 50% of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the value of the Fund’s outstanding Common Shares may be owned, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">directly or indirectly, by five or fewer individuals (including certain </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">entities treated as individuals for this purpose) during the last half of a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">taxable year. For the purpose of assisting the Fund’s qualification as a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">REIT for U.S. federal income tax purposes, among other purposes, the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s Declaration of Trust prohibits beneficial or constructive </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">ownership by any person or group of more than 9.8%, in value or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">number of shares, whichever is more restrictive, of the outstanding </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">shares of the Fund’s outstanding Common Shares, or 9.8% in value or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">number of shares, whichever is more restrictive, of the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">outstanding capital stock of all classes or series, which PIMCO refers to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">as the “Ownership Limit.” The constructive ownership rules under the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Code and the Fund’s Declaration of Trust are complex and may cause </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">shares of the outstanding Common Shares owned by a group of related </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">persons to be deemed to be constructively owned by one person. As a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">result, the acquisition of less than 9.8% of the Fund’s outstanding </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Common Shares or the Fund’s capital stock by a person could cause </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">another person to constructively own in excess of 9.8% of the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">outstanding Common Shares or the Fund’s capital stock, respectively, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and thus violate the Ownership Limit. There can be no assurance that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund’s board of trustees, as permitted in the Declaration of Trust, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">will not decrease this Ownership Limit in the future. Any attempt to own </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or transfer shares of the Fund’s Common Shares or capital stock in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">excess of the Ownership Limit without the consent of the Fund’s board </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of trustees will result in the transfer being void.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Ownership Limit may have the effect of precluding a change in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">control of the Fund by a third party, even if such change in control </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">would be in the best interests of the Fund’s Common Shareholders or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">would result in receipt of a premium to the price of the Fund’s Common </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Shares (and even if such change in control would not reasonably </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">jeopardize the Fund’s REIT status). The exemptions to the Ownership </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Limit granted to date may limit the Fund’s Board’s power to increase the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Ownership Limit or grant further exemptions in the future.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">The Fund’s Board of Trustees is authorized to revoke the Fund’s REIT </div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">election without shareholder approval, which may cause adverse </div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">consequences to the Fund’s shareholders.</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund’s Declaration of Trust authorizes the Fund’s Board of Trustees </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to revoke or otherwise terminate the Fund’s REIT election, without the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">approval of the Fund’s shareholders, if it determines that changes to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">U.S. federal income tax laws and regulations or other considerations </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mean it is no longer in the Fund’s best interests to qualify as a REIT. The </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s Board of Trustees has fiduciary duties to us and the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">shareholders and could only cause such changes in the Fund’s tax </div></div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">treatment if it determines in good faith that such changes are in the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s best interests and in the best interests of the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">shareholders. In this event, the Fund would become subject to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">U.S. federal income tax on the Fund’s taxable income and the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">would no longer be required to distribute most of the Fund’s net income </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to the Fund’s shareholders, which may cause a reduction in the total </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">return to the Fund’s shareholders.</div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Tax Risks of Investing in the Fund</div></div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">Non-U.S. holders may be subject to U.S. federal income tax upon their </div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">disposition of shares of the Fund’s Common Shares or upon their receipt </div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">of certain distributions from PIMCO.</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">In addition to any potential withholding tax on ordinary dividends, a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">non-U.S. holder (as such term is defined below under “Certain </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">U.S. Federal Income Tax Considerations—Taxation of U.S. Holders of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s Common Shares”), other than a “qualified shareholder” or a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">“qualified foreign pension fund,” that disposes of a “U.S. real property </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest” (“USRPI”) (which includes shares of stock of a U.S. corporation </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">whose assets consist principally of USRPIs), is generally subject to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">U.S. federal income tax under the Foreign Investment in Real Property </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Tax Act of 1980, as amended (“FIRPTA”), on the amount received from </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such disposition. Such tax does not apply, however, to the disposition of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">stock in a REIT that is “domestically controlled.” Generally, a REIT is </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">domestically controlled if less than 50% of its stock, by value, has been </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">owned directly or indirectly by non-U.S. persons during a continuous </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">five-year period ending on the date of disposition or, if shorter, during </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the entire period of the REIT’s existence. The Fund cannot assure </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Common Shareholders that it will qualify as a domestically controlled </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">REIT. If the Fund were to fail to so qualify, amounts received by a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">non-U.S. holder on certain dispositions of the Fund’s Common Shares </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(including a redemption) would be subject to tax under FIRPTA, unless </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(i) the Fund’s Common Shares were regularly traded on an established </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities market and (ii) the non-U.S. holder did not, at any time during </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">a specified testing period, hold more than 10% of the Fund’s Common </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Shares. See “Certain U.S. Federal Income Tax Considerations—Taxation </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of Non-U.S. Holders of the Fund’s Common Shares—Sales of the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Common Shares.”</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">A non-U.S. holder other than a “qualified shareholder” or a “qualified </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">foreign pension fund,” that receives a distribution from a REIT that is </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">attributable to gains from the disposition of a USRPI as described </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">above, including in connection with a repurchase of the Fund’s Common </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Shares, is generally subject to U.S. federal income tax under FIRPTA to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the extent such distribution is attributable to gains from such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">disposition, regardless of whether the difference between the fair </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">market value and the tax basis of the USRPI giving rise to such gains is </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">attributable to periods prior to or during such non-U.S. holder’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">ownership of the Fund’s Common Shares. In addition, a repurchase of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund’s Common Shares, to the extent not treated as a sale or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">exchange, may be subject to withholding as an ordinary dividend. See </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">“Certain U.S. Federal Income Tax Considerations—Taxation of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Non-U.S. Holders of the Fund’s Common Shares—Distributions, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and—Repurchases of the Fund’s Common Shares.”</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">PIMCO seeks to act in the best interests of the Fund as a whole and not </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in consideration of the particular tax consequences to any specific </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">holder of the Fund’s Common Shares. Potential non-U.S. holders should </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">inform themselves as to the U.S. tax consequences, and the tax </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">consequences within the countries of their citizenship, residence, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">domicile, and place of business, with respect to the purchase, ownership </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and disposition of shares of the Fund’s Common Shares.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">Investments outside the United States may subject the Fund to </div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">additional taxes and could present additional complications to the </div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">Fund’s ability to satisfy the REIT qualification requirements.</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Non-U.S. investments may subject the Fund to various non-U.S. tax </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">liabilities, including withholding taxes. In addition, operating in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">functional currencies other than the U.S. dollar and in environments in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which real estate transactions are typically structured differently than </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">they are in the United States or are subject to different legal rules may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">present complications to the Fund’s ability to structure </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">non-U.S. investments in a manner that enables the Fund to satisfy the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">REIT qualification requirements.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">The Fund may incur tax liabilities that would reduce the Fund’s cash </div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">available for distribution to shareholders.</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Even if the Fund qualifies and maintains the Fund’s status as a REIT, the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund may become subject to U.S. federal income taxes and related state </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and local taxes. For example, net income from the sale of properties that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">are “dealer” properties sold by a REIT (a “prohibited transaction” under </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Code) will be subject to a 100% tax. The Fund may not make </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sufficient distributions to avoid excise taxes applicable to REITs. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Similarly, if the Fund were to fail an income test (and did not lose the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s REIT status because such failure was due to reasonable cause </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and not willful neglect) the Fund would be subject to tax on the income </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">that does not meet the income test requirements. To qualify as a REIT, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund generally must distribute annually to the Fund’s Common </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Shareholders a minimum of 90% of the Fund’s net taxable income, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">determined without regard to the dividends-paid deduction and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">excluding net capital gains. If the Fund does not have sufficient cash to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">make distributions necessary to preserve the Fund’s REIT status for any </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">year or to avoid taxation, the Fund may be forced to borrow funds or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sell assets even if the market conditions at that time are not favorable </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">for these borrowings or sales. These options could increase the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">costs or reduce the Fund’s equity. The Fund also may decide to retain </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">net capital gains the Fund earns from the sale or other disposition of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s investments and pay income tax directly on such income. In that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">event, the Fund’s shareholders would be treated as if they earned that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">income and paid the tax on it directly. However, shareholders that are </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">tax-exempt, such as charities or qualified pension plans, would have no </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">benefit from their deemed payment of such tax liability unless they file </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">U.S. federal income tax returns and thereon seek a refund of such tax. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund also may be subject to state and local taxes on the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">income, gross receipts or property, including franchise, payroll, mortgage </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">recording and transfer taxes, either directly or at the level of the other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">companies through which the Fund indirectly owns assets, such as the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s taxable REIT subsidiaries, which are subject to full U.S. federal, </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">state, local and foreign corporate-level income taxes. Any taxes the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">pays directly or indirectly will reduce the Fund’s cash available for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">distribution to shareholders.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">There may be current tax liability on distributions reinvested in the </div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">Fund’s Common Shares.</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">If a shareholder participates in the Fund’s distribution reinvestment </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">plan, that shareholder will be deemed to have received, and for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">U.S. federal income tax purposes will be taxed on, the amount </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">reinvested in shares of the Fund’s Common Shares to the extent the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">amount reinvested was not a tax-free return of capital. Therefore, unless </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the shareholder is a tax-exempt entity, the shareholder may be forced to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">use funds from other sources to pay any tax liability on the reinvested </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">dividends.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">Generally, ordinary dividends payable by REITs do not qualify for </div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">reduced U.S. federal income tax rates.</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Currently, the maximum tax rate applicable to qualified dividend income </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">payable to certain non-corporate U.S. Common Shareholders is 20%. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Dividends payable by REITs, however, generally are not eligible for the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">reduced rate. Although this does not adversely affect the taxation of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">REITs or dividends payable by REITs, the more favorable rates applicable </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to regular corporate qualified dividends could cause certain </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">non-corporate investors to perceive investments in REITs to be relatively </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">less attractive than investments in the stocks of non-REIT corporations </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">that pay dividends, which could adversely affect the value of the shares </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of REITs, including the Fund’s Common Shares. However, under current </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">law, individual taxpayers may be entitled to claim (through 2025) a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">deduction in determining their taxable income of 20% of ordinary REIT </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">dividends (dividends other than capital gain dividends and dividends </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">attributable to certain qualified dividend income received by the Fund), </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which temporarily reduces the effective tax rate on such dividends. See </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">“Certain U.S. Federal Income Tax Considerations—Taxation of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">U.S. Holders of the Fund’s Common Shares—Distributions Generally.” </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Shareholders are urged to consult with a tax advisor regarding the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">effective tax rate with respect to REIT dividends.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">The Fund may be subject to adverse legislative or regulatory tax </div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">changes that could increase the Fund’s tax liability, reduce the Fund’s </div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">operating flexibility and reduce the price of the Fund’s Common Shares.</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">In recent years, numerous legislative, judicial and administrative </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">changes have been made in the provisions of U.S. federal income tax </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">laws applicable to investments similar to an investment in shares of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s Common Shares. Additional changes to the tax laws are likely to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">continue to occur, and PIMCO cannot assure shareholders that any such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">changes will not adversely affect the taxation of the Fund’s Common </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Shareholders. Any such changes could have an adverse effect on an </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment in the Fund’s shares or on the market value or the resale </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">potential of the Fund’s assets. Shareholders are urged to consult with a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">tax advisor with respect to the impact of recent legislation on your </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment in the Fund’s shares and the status of legislative, regulatory </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or administrative developments and proposals and their potential effect </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">on an investment in the Fund’s shares. Although REITs generally receive </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">certain tax advantages compared to entities taxed as regular </div></div></div><div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">corporations, it is possible that future legislation would result in a REIT </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">having fewer tax advantages, and it could become more advantageous </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">for a company that invests in real estate to elect to be treated for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">U.S. federal income tax purposes as a corporation. As a result, the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s Declaration of Trust authorizes the Fund’s Board of Trustees to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">revoke or otherwise terminate the Fund’s REIT election, without the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">approval of the Fund’s Common Shareholders, if it determines that </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">changes to U.S. federal income tax laws and regulations or other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">considerations mean it is no longer in the Fund’s best interests to qualify </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">as a REIT. Prospective investors should consult their own tax advisors </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">regarding changes in tax laws.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">The failure of a mezzanine loan to qualify as a real estate asset could </div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">adversely affect the Fund’s ability to qualify as a REIT.</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">PIMCO may acquire mezzanine loans, for which the United States </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Internal Revenue Service (the “IRS”) has provided a safe harbor but not </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rules of substantive law. Pursuant to the safe harbor, if a mezzanine </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">loan meets certain requirements, it will be treated by the IRS as a real </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">estate asset for purposes of the REIT asset tests, and interest derived </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">from the mezzanine loan will be treated as qualifying mortgage interest </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">for purposes of the REIT 75% income test. PIMCO may acquire </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">mezzanine loans that do not meet all of the requirements of this safe </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">harbor. In the event the Fund owns a mezzanine loan that does not </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">meet the safe harbor, the IRS could challenge such loan’s treatment as a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">real estate asset for purposes of the REIT asset and income tests and, if </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such a challenge were sustained, the Fund could fail to qualify as a REIT.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">If the Fund’s operating partnership failed to qualify as a partnership or is </div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">not otherwise disregarded for U.S. federal income tax purposes, the </div></div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">Fund would cease to qualify as a REIT.</div></div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">If the IRS were to successfully challenge the status of the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">operating partnership as a partnership or disregarded entity for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">U.S. federal income tax purposes, it would be taxable as a corporation. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">In the event that this occurs, it would reduce the amount of distributions </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">that the Fund’s operating partnership could make to the Fund. This </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">would also result in the Fund’s failing to qualify as a REIT and becoming </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">subject to a corporate-level tax on the Fund’s income, which would </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">substantially reduce the Fund’s cash available to pay distributions and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the yield on your investment.</div></div></div> <div style="line-height:14.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Description of Capital Structure and Shares</div></div></div></div> <div style="line-height:12.0pt;margin-top:2pt;text-align:left"><div style="margin-top:2pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The following is a brief description of the capital structure of the Fund. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">This description does not purport to be complete and is subject to and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">qualified in its entirety by reference to the Declaration and the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Bylaws, as amended and restated through the date hereof (the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">“Bylaws”). The Declaration of Trust and Bylaws are each exhibits to the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">registration statement of which this prospectus is a part.</div></div></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund is a Delaware statutory trust with transferable shares of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">beneficial interest established under the laws of the State of Delaware. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Declaration of Trust provides that the Trustees of the Fund may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">authorize separate classes of shares of beneficial interest. Preferred </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Shares may be issued in one or more series, with such par value and with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such rights as determined by the Board, by action of the Board without </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the approval of the Common Shareholders.</div></div></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The following table shows the amounts of Common Shares of the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">that were authorized and outstanding as of December 31, 2024:</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 1pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div> <div style="margin-top:0.0pt"> <table cellpadding="0" cellspacing="0" style="text-align:start; border-bottom:0.5pt solid #00687D;empty-cells:show;width:263pt"> <tr style="height:14.25pt"> <td style="background-color:#FFFFFF;border-bottom:0.5pt solid #00687D;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Bottom;width:106.48pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:3pt;margin-right:6pt;text-align:Left;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">(1)</div></div></div></div></td> <td style="background-color:#FFFFFF;border-bottom:0.5pt solid #00687D;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Bottom;width:44.14pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">(2)</div></div></div></div></td> <td style="background-color:#FFFFFF;border-bottom:0.5pt solid #00687D;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Bottom;width:58.83pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">(3)</div></div></div></div></td> <td style="background-color:#FFFFFF;border-bottom:0.5pt solid #00687D;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Bottom;width:53.55pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:6pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">(4)</div></div></div></div></td></tr> <tr style="height:39.5pt"> <td style="background-color:azure;border-bottom:0.5pt solid #00687D;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Bottom;width:106.48pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:3pt;margin-right:6pt;text-align:Left;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Title of Class</div></div></div></div></td> <td style="background-color:azure;border-bottom:0.5pt solid #00687D;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Bottom;width:44.14pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Amount</div></div></div><div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Authorized</div></div></div></div></td> <td style="background-color:azure;border-bottom:0.5pt solid #00687D;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Bottom;width:58.83pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Amount Held by</div></div></div><div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">the Fund for its</div></div></div><div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Account</div></div></div></div></td> <td style="background-color:azure;border-bottom:0.5pt solid #00687D;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Bottom;width:53.55pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:6pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Amount</div></div></div><div style="margin-left:6pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Outstanding</div></div></div><div style="margin-left:6pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Exclusive of</div></div></div><div style="margin-left:6pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Amount Shown</div></div></div><div style="margin-left:6pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Under (3)</div></div></div></div></td></tr> <tr style="height:11.25pt"> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:1.75pt;vertical-align:Top;width:106.48pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:6pt;text-align:Left;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Institutional Class Common Shares</div></div></div></td> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:1.75pt;vertical-align:Top;width:44.14pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Unlimited</div><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; line-height: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div></td> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:1.75pt;vertical-align:Top;width:58.83pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">0</div></div></div></td> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:1.75pt;vertical-align:Top;width:53.55pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:6pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">28,225,567</div></div></div></td></tr> <tr style="height:11pt"> <td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:106.48pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:6pt;text-align:Left;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Class F Common Shares</div></div></div></td> <td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:44.14pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Unlimited</div></div></div></td> <td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:58.83pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">0</div></div></div></td> <td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:53.55pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:6pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">952</div></div></div></td></tr> <tr style="height:11pt"> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:106.48pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:6pt;text-align:Left;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Class A-3 Common Shares</div></div></div></td> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:44.14pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">0</div></div></div></td> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:58.83pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">0</div></div></div></td> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:53.55pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:6pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">0</div></div></div></td></tr> <tr style="height:11pt"> <td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:106.48pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:6pt;text-align:Left;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Class A-4 Common Shares</div></div></div></td> <td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:44.14pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">0</div></div></div></td> <td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:58.83pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">0</div></div></div></td> <td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:53.55pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:6pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">0</div></div></div></td></tr> <tr style="height:8.5pt"> <td style="background-color:#FFFFFF;padding-bottom:2pt;padding-top:3pt;vertical-align:Top;width:106.48pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:6pt;text-align:Left;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Series A Preferred Shares</div></div></div></td> <td style="background-color:#FFFFFF;padding-bottom:2pt;padding-top:3pt;vertical-align:Top;width:44.14pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Unlimited</div></div></div></td> <td style="background-color:#FFFFFF;padding-bottom:2pt;padding-top:3pt;vertical-align:Top;width:58.83pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">0</div></div></div></td> <td style="background-color:#FFFFFF;padding-bottom:2pt;padding-top:3pt;vertical-align:Top;width:53.55pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:6pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">125</div></div></div></td></tr></table></div> <div style="line-height:17.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Common Shares</div></div></div></div> <div style="line-height:12.0pt;margin-top:4.0pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Declaration of Trust authorizes the issuance of an unlimited number </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of Common Shares. The Common Shares will be issued with a par value </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of $0.00001 per share. The Fund currently has four classes of Common </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Shares: Institutional Class, Class A-3, Class A-4 and Class F. An </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment in any share class of the Fund represents an investment in </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the same assets of the Fund. However, the ongoing fees and expenses </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">for each share class may be different. The fees and expenses for the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">are set forth in “Summary of Fund Expenses” above. Certain share class </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">details are set forth in “Plan of Distribution” above.</div></div></div> <div style="line-height:12.0pt;margin-top:4.0pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Common Shareholders will be entitled to the payment of dividends and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other distributions when, as and if declared by the Board.</div> All Common </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Shares have equal rights to the payment of dividends and the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">distribution of assets upon liquidation. Common Shares will, when </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">issued, be fully paid and non-assessable, and will have no pre-emptive or conversion rights or rights to cumulative voting. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Upon liquidation of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund, after paying or adequately providing for the payment of all </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">liabilities of the Fund and the liquidation preference with respect to any </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">outstanding Preferred Shares, and upon receipt of such releases, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">indemnities and refunding agreements as they deem necessary for their </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">protection, the Trustees may distribute the remaining assets of the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">among the Fund’s Common Shareholders.</div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"></div></div></div> <div style="line-height:12.0pt;margin-top:4.0pt;text-align:left"><div style="margin-top:4pt"><div style="color:#333333;font-family:Arial Narrow;font-size:10pt;display:inline;">The Fund does not intend to hold annual meetings of shareholders. </div><div style="color:#333333;font-family:Arial Narrow;font-size:10pt;display:inline;">If the </div><div style="color:#333333;font-family:Arial Narrow;font-size:10pt;display:inline;">Fund does hold a meeting of shareholders, Common Shares of the Fund </div><div style="color:#333333;font-family:Arial Narrow;font-size:10pt;display:inline;">entitle their holders to one vote for each Common Share held; however, </div><div style="color:#333333;font-family:Arial Narrow;font-size:10pt;display:inline;">separate votes are taken by each class of Common Shares on matters </div><div style="color:#333333;font-family:Arial Narrow;font-size:10pt;display:inline;">affecting an individual class of Common Shares. Each fractional share </div><div style="color:#333333;font-family:Arial Narrow;font-size:10pt;display:inline;">shall be entitled to a proportionate fractional vote, except as otherwise </div><div style="color:#333333;font-family:Arial Narrow;font-size:10pt;display:inline;">provided by the Declaration of Trust, Bylaws, or required by applicable </div><div style="color:#333333;font-family:Arial Narrow;font-size:10pt;display:inline;">law.</div><div style="color:#333333;font-family:Arial Narrow;font-size:10pt;display:inline;"></div></div></div> <div style="line-height:12.0pt;margin-top:4.0pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund will send unaudited reports at least semiannually and audited </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">financial statements annually to all of its Common Shareholders.</div></div></div> <div style="line-height:12.0pt;margin-top:4.0pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Common Shares are not, and are not expected to be, listed for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">trading on any national securities exchange nor is there expected to be </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">any secondary trading market in the Common Shares.</div></div></div> <div style="line-height:12.0pt;margin-top:4.0pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">As noted under “Leverage,” the Fund currently intends, subject to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">favorable market conditions, to add leverage to its portfolio by utilizing </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">reverse repurchase agreements, credit default swaps, dollar </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rolls/buybacks or borrowings, such as through bank loans or commercial </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">paper and/or other credit facilities. The Fund may also enter into </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">transactions other than those noted above that may give rise to a form of </div></div></div> <div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">leverage including, among others, futures and forward contracts </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(including foreign currency exchange contracts), credit default swaps, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">total return swaps and other derivative transactions, loans of portfolio </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities, short sales and when-issued, delayed delivery and forward </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">commitment transactions.</div></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund has issued Preferred Shares, and may issue additional Preferred </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Shares or other senior securities to add leverage to its portfolio. Any such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Preferred Shares would have complete priority upon distribution of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">assets over the Common Shares.</div></div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Preferred Shares</div></div></div></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund’s Declaration of Trust authorizes the Board to classify and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">reclassify any unissued Common Shares into shares of other classes or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">series of shares, including Preferred Shares, without the approval of Common Shareholders. <div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Common Shareholders have no preemptive right </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to purchase any shares of Preferred Shares that the Fund may issue.</div> The </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund may elect to issue additional Preferred Shares in the future as part </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of a leveraging strategy.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Prior to issuance of shares of any class or series, the Board is required by </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Delaware statutory trust and by the Fund’s Declaration of Trust to set the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">preferences, conversion and other rights, voting powers, restrictions, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">limitations as to dividends and other distributions, qualifications and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">terms and conditions of redemption of each such class or series. Thus, the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Board could authorize the Fund to issue shares of Preferred Shares with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">terms that could have the effect of delaying, deferring or preventing a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">transaction or a change in control that might involve a premium price for </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">common shareholders or otherwise be in their best interests. Any </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">issuance of Preferred Shares, however, must comply with the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">requirements of the Investment Company Act. The Fund's ability to make </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">distributions to its common shareholders may be limited by the terms of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such Preferred Shares or debt securities, the asset coverage requirements </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and other limitations imposed by the Investment Company Act, Delaware </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">law and the Fund’s lenders.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">On January 5, 2023, and as approved by the Board, the Fund issued 125 </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Shares in a single series, Series A.</div></div></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Under the Investment Company Act, holders of the Preferred Shares are </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">entitled to elect two trustees of the Fund at all times and to elect a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">majority of the Fund’s trustees if at any time dividends on the Preferred </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Shares are unpaid in an amount equal to two full years’ dividends. </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Holders of the Preferred Shares would continue to have the right to elect </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">a majority of the Fund’s trustees until all dividends in arrears on the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Preferred Shares have been paid. In addition, holders of the Preferred </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Shares would also be entitled to vote separately as a class on certain </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">matters, which may at times give holders of Preferred Shares </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">disproportionate influence over the Fund’s affairs.</div></div></div> <div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Transfer Restrictions</div></div></div></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">For the Fund to qualify as a REIT, no more than 50% in value of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">outstanding shares of the Fund’s Common Shares may be owned, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">directly or indirectly through the application of certain attribution rules </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">under the Code, by any five or fewer individuals, as defined in the Code </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to include specified entities, during the last half of any taxable year other </div></div></div> <div style="line-height:12.0pt;text-align:left"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">than the Fund’s first taxable year. In addition, the outstanding shares of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund’s Common Shares must be owned by 100 or more persons </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">independent of the Fund and each other during at least 335 days of a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">12-month taxable year or during a proportionate part of a shorter </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">taxable year, excluding the Fund’s first taxable year for which the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">elects to be taxed as a REIT. In addition, the Fund must meet </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">requirements regarding the nature of the Fund’s gross income to qualify </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">as a REIT. One of these requirements is that at least 75% of the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">gross income for each calendar year must consist of rents from real </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">property and income from other real property investments.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">To assist the Fund in preserving the Fund’s status as a REIT, among other </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">purposes, the Fund’s Declaration of Trust contains limitations on the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">transfer and ownership of shares of the Fund’s Common Shares which </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">prohibit: (i) any person, entity or group from owning or acquiring, directly </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or indirectly, more than 9.8% in value or number of shares, whichever is </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">more restrictive, of the aggregate of the Fund’s then outstanding shares </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of capital stock of all classes and series or more than 9.8% in value or </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">number of shares, whichever is more restrictive, of the aggregate of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s then outstanding Common Shares; (ii) any person or entity from </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">owning or acquiring, directly or indirectly shares of the Fund’s Common </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Shares to the extent such ownership would result in the Fund’s being </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">“closely held” within the meaning of Section 856(h) of the Code </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(without regard to whether the ownership interest is held during the last </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">half of a taxable year) or otherwise failing to qualify as a REIT; and (iii) </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">any transfer of or other event or transaction with respect to shares of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">capital stock that would result in the beneficial ownership of the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">outstanding shares of capital stock by fewer than 100 persons </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(determined under the principles of Section 856(a)(5) of the Code). The </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s Declaration of Trust provides that any transfer of shares of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s capital stock that, if effective, would result in a violation of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">above restrictions, shall be automatically void and the intended </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">transferee shall acquire no rights in such shares of capital stock.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Any person who acquires or attempts to acquire shares of the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">capital stock in violation of the foregoing restrictions, is required to give </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">immediate written notice to the Fund of such event, or, in the case of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such a proposed or attempted transaction, 15 days written notice prior </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to such purported transaction. In both cases, such persons must provide </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to the Fund such other information as PIMCO may request to determine </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the effect, if any, of such event on the Fund’s status as a REIT.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The foregoing restrictions will continue to apply until the Board </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">determines it is no longer in the Fund’s best interest to attempt to, or to </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">continue to, qualify as a REIT or that compliance with the restrictions is </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">no longer required for the Fund to qualify as a REIT.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The ownership limits do not apply to a person or persons that the Board </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">exempts from the ownership limit upon appropriate assurances </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(including certain representations and undertakings from the intended </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">transferee) that the Fund’s qualification as a REIT is not jeopardized. In </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">addition, the Fund’s Declaration of Trust exempts PIMCO and its affiliates </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">from the Ownership Limit.</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div> <div style="line-height:12.0pt;margin-top:4pt;text-align:left"><div style="margin-top:4pt"><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Every owner of 5% or more (or such lower percentage as required by the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Code or the regulations promulgated thereunder) of the Fund’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">outstanding Common Shares is required, within 30 days after the end of </div></div></div> <div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">each taxable year, to give the Fund written notice stating his, her or its </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">name and address, the number of shares of each class and series of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s Common Shares which the shareholders beneficially owns and a </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">description of the manner in which the shares are held. Each such owner </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">shall provide the Fund with such additional information as the Fund may </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">request in order to determine the effect, if any, of the shareholder’s </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">beneficial ownership on the Fund’s qualification as a REIT and to ensure </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">compliance with the restrictions noted above. In addition, each </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">shareholders shall upon demand be required to provide the Fund with </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such information as the Fund may request in order to determine the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s qualification as a REIT and to comply with the requirements of </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">any taxing authority or governmental authority or to determine such </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">compliance.</div> <div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The following table shows the amounts of Common Shares of the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">that were authorized and outstanding as of December 31, 2024:</div><div style="color: rgb(0, 0, 0); font-family: &quot;Arial Narrow&quot;; font-size: 1pt; letter-spacing: 0px; top: 0px;display:inline;"> </div> <table cellpadding="0" cellspacing="0" style="text-align:start; border-bottom:0.5pt solid #00687D;empty-cells:show;width:263pt"> <tr style="height:14.25pt"> <td style="background-color:#FFFFFF;border-bottom:0.5pt solid #00687D;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Bottom;width:106.48pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:3pt;margin-right:6pt;text-align:Left;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">(1)</div></div></div></div></td> <td style="background-color:#FFFFFF;border-bottom:0.5pt solid #00687D;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Bottom;width:44.14pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">(2)</div></div></div></div></td> <td style="background-color:#FFFFFF;border-bottom:0.5pt solid #00687D;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Bottom;width:58.83pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">(3)</div></div></div></div></td> <td style="background-color:#FFFFFF;border-bottom:0.5pt solid #00687D;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Bottom;width:53.55pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:6pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">(4)</div></div></div></div></td></tr> <tr style="height:39.5pt"> <td style="background-color:azure;border-bottom:0.5pt solid #00687D;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Bottom;width:106.48pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:3pt;margin-right:6pt;text-align:Left;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Title of Class</div></div></div></div></td> <td style="background-color:azure;border-bottom:0.5pt solid #00687D;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Bottom;width:44.14pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Amount</div></div></div><div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Authorized</div></div></div></div></td> <td style="background-color:azure;border-bottom:0.5pt solid #00687D;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Bottom;width:58.83pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Amount Held by</div></div></div><div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">the Fund for its</div></div></div><div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Account</div></div></div></div></td> <td style="background-color:azure;border-bottom:0.5pt solid #00687D;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Bottom;width:53.55pt"><div style="line-height:8.0pt;text-align:left"><div style="margin-left:6pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Amount</div></div></div><div style="margin-left:6pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Outstanding</div></div></div><div style="margin-left:6pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Exclusive of</div></div></div><div style="margin-left:6pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Amount Shown</div></div></div><div style="margin-left:6pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 104, 125); font-family: &quot;Arial Narrow&quot;; font-size: 7pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bold;display:inline;">Under (3)</div></div></div></div></td></tr> <tr style="height:11.25pt"> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:1.75pt;vertical-align:Top;width:106.48pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:6pt;text-align:Left;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Institutional Class Common Shares</div></div></div></td> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:1.75pt;vertical-align:Top;width:44.14pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Unlimited</div><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; line-height: 7.5pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div></td> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:1.75pt;vertical-align:Top;width:58.83pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">0</div></div></div></td> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:1.75pt;vertical-align:Top;width:53.55pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:6pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">28,225,567</div></div></div></td></tr> <tr style="height:11pt"> <td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:106.48pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:6pt;text-align:Left;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Class F Common Shares</div></div></div></td> <td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:44.14pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Unlimited</div></div></div></td> <td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:58.83pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">0</div></div></div></td> <td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:53.55pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:6pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">952</div></div></div></td></tr> <tr style="height:11pt"> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:106.48pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:6pt;text-align:Left;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Class A-3 Common Shares</div></div></div></td> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:44.14pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">0</div></div></div></td> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:58.83pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">0</div></div></div></td> <td style="background-color:#FFFFFF;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:53.55pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:6pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">0</div></div></div></td></tr> <tr style="height:11pt"> <td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:106.48pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:6pt;text-align:Left;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Class A-4 Common Shares</div></div></div></td> <td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:44.14pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">0</div></div></div></td> <td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:58.83pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">0</div></div></div></td> <td style="background-color:azure;padding-bottom:3pt;padding-top:3pt;vertical-align:Top;width:53.55pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:6pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">0</div></div></div></td></tr> <tr style="height:8.5pt"> <td style="background-color:#FFFFFF;padding-bottom:2pt;padding-top:3pt;vertical-align:Top;width:106.48pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:3pt;margin-right:6pt;text-align:Left;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Series A Preferred Shares</div></div></div></td> <td style="background-color:#FFFFFF;padding-bottom:2pt;padding-top:3pt;vertical-align:Top;width:44.14pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Unlimited</div></div></div></td> <td style="background-color:#FFFFFF;padding-bottom:2pt;padding-top:3pt;vertical-align:Top;width:58.83pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:6pt;margin-right:6pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">0</div></div></div></td> <td style="background-color:#FFFFFF;padding-bottom:2pt;padding-top:3pt;vertical-align:Top;width:53.55pt"><div style="line-height:7.5pt;text-align:left"><div style="margin-left:6pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(63, 63, 63); font-family: &quot;Arial Narrow&quot;; font-size: 7.5pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">125</div></div></div></td></tr></table> Institutional Class Common Shares 0 28225567 Class F Common Shares 0 952 Class A-3 Common Shares 0 0 0 Class A-4 Common Shares 0 0 0 Series A Preferred Shares 0 125 Common Shares <div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Common Shareholders will be entitled to the payment of dividends and </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other distributions when, as and if declared by the Board.</div> <div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Upon liquidation of the </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund, after paying or adequately providing for the payment of all </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">liabilities of the Fund and the liquidation preference with respect to any </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">outstanding Preferred Shares, and upon receipt of such releases, </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">indemnities and refunding agreements as they deem necessary for their </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">protection, the Trustees may distribute the remaining assets of the Fund </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">among the Fund’s Common Shareholders.</div> <div style="color:#333333;font-family:Arial Narrow;font-size:10pt;display:inline;">If the </div><div style="color:#333333;font-family:Arial Narrow;font-size:10pt;display:inline;">Fund does hold a meeting of shareholders, Common Shares of the Fund </div><div style="color:#333333;font-family:Arial Narrow;font-size:10pt;display:inline;">entitle their holders to one vote for each Common Share held; however, </div><div style="color:#333333;font-family:Arial Narrow;font-size:10pt;display:inline;">separate votes are taken by each class of Common Shares on matters </div><div style="color:#333333;font-family:Arial Narrow;font-size:10pt;display:inline;">affecting an individual class of Common Shares. Each fractional share </div><div style="color:#333333;font-family:Arial Narrow;font-size:10pt;display:inline;">shall be entitled to a proportionate fractional vote, except as otherwise </div><div style="color:#333333;font-family:Arial Narrow;font-size:10pt;display:inline;">provided by the Declaration of Trust, Bylaws, or required by applicable </div><div style="color:#333333;font-family:Arial Narrow;font-size:10pt;display:inline;">law.</div> Preferred Shares <div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Common Shareholders have no preemptive right </div><div style="color: rgb(51, 51, 51); font-family: &quot;Arial Narrow&quot;; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to purchase any shares of Preferred Shares that the Fund may issue.</div> While neither the Fund nor the Distributor impose an initial sales charge, if you buy Institutional Class, Class A-3 or Class F Common Shares through certain financial firms, they may directly charge you transaction or other fees in such amount as they may determine. Please consult your financial firm for additional information. Although the Fund is permitted to charge a maximum sales charge of 3.00%, the Fund has elected to currently charge a maximum sales charge of 2.00%. See “Plan of Distribution - Purchasing Shares - Reductions and Waivers of Initial Sales Charges and EWCs” - Class A-4 Common Shares in this prospectus for more information on sales charge waivers and discounts. “Interest Payments on Borrowed Funds” and “Dividends and Other Costs on Preferred Shares” are borne by the Fund separately from the advisory and administrative fees paid to PIMCO. Excluding such expenses, estimated Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement are 1.86% for Institutional Class and Class F shares and 2.61% for Class A-3 and Class A-4 shares. “Interest Payments on Borrowed Funds” reflects the Fund’s use of leverage averaged over the period ended December 31, 2023 in an amount equal to 43.20% of the Fund's average net assets (including assets attributable to such leverage) at an interest rate of 6.26%. The actual amount of leverage used and borrowing expenses borne by the Fund will vary over time in accordance with the level of the Fund's use of secured credit facilities from certain financial institutions and/or other forms of borrowings and variations in market interest rates. Borrowing expense is required to be treated as an expense of the Fund for accounting purposes. Any associated income or gains (or losses) realized from leverage obtained through such instruments is not reflected in the Annual Fund Operating Expenses table above, but would be reflected in the Fund's performance result. “Dividend and Other Costs on Preferred Shares” reflects the Fund’s issuance of Preferred Shares in an amount equal to 0.28% of the Fund's average net assets, at an estimated annual dividend cost to the Fund of 12.00%. See “Description of Capital Structure and Shares.” Dividend and Other Costs on Preferred Shares are borne directly by the Fund and will be reflected in the Fund's financial statements. PIMCO has contractually agreed (the “Expense Limitation Agreement”), through May 1, 2026, to waive its supervisory and administrative fee, or reimburse the Fund, to the extent that organizational expenses (including any initial offering expenses), the payment of expenses associated with obtaining or maintaining a Legal Entity Identifier (“LEI”) and/or payment of the Fund’s pro rata Trustees’ fees (the “Specified Expenses”) in any fiscal year exceed 0.07% of the Fund’s average daily net assets (the “Expense Limit”). Under the Expense Limitation Agreement, if, in any month during which the Administration Agreement is in effect, the estimated annualized Specified Expenses of the Fund for that month are less than the Expense Limit, PIMCO shall be entitled to reimbursement by the Fund of any Supervisory and Administrative Fees waived or reduced pursuant to the Expense Limitation Agreement (the “Reimbursement Amount”) during the previous thirty-six (36) months, to the extent that the Fund’s annualized Specified Expenses plus the amount so reimbursed does not exceed, for such month, the Expense Limit (or the expense limit in place at the time the amount being recouped was originally waived if lower than the Expense Limit) or any future expense limitation that may be in place, provided that such amount paid to PIMCO will in no event exceed the total Reimbursement Amount and will not include any amounts previously reimbursed to PIMCO. The Expense Limitation Agreement shall automatically renew for one-year terms unless PIMCO provides written notice to the Fund of the termination of the Expense Limitation Agreement, which notice shall be received by the Fund at least 30 days prior to the end of the then-current term. In addition, the Expense Limitation Agreement shall terminate upon termination of the Administration Agreement, or it may be terminated by the Fund, without payment of any penalty, upon ninety (90) days’ prior written notice to PIMCO at its principal place of business. The example above should not be considered a representation of future expenses. Actual expenses may be higher or lower than those shown. The example assumes that the estimated Interest Payments on Borrowed Funds and Other Expenses set forth in the Annual Fund Operating Expenses table are accurate, that the Total Annual Fund Operating Expenses (as described above) remain the same for all time periods shown and that all dividends and distributions are reinvested at NAV. Actual expenses may be greater or less than those assumed. Moreover, the Fund’s actual rate of return may be greater or less than the hypothetical 5% annual return shown in the example. In addition to the fees and expenses described above, you may also be required to pay transaction or other fees on purchases of Common Shares of the Fund, which are not reflected in the example. “Property-Level Expenses” represents estimated fees and expenses related to property management, disposition expenses, any other expenses related to investments in real property by the Fund’s consolidated subsidiaries. In addition, the Fund also expects that its unconsolidated operating entities will incur property management, disposition and other expenses related to investments in real property, the costs of which will be indirectly borne by Common Shareholders. The Fund’s real estate operating subsidiaries have and expect in the future to hire affiliated or unaffiliated property managers or other service providers (who could also be joint venture partners for an investment) at prevailing market rates to perform management and specialized services for the Fund’s commercial real estate (“CRE”) investments.