Fund Description: Pimco Active Bond ETF, formerly PIMCO Total Return Exchange-Traded Fund ETF, is an actively managed exchange-traded fund or Actively Managed ETF which is a separate investment portfolio of the PIMCO ETF Trust, an open-end investment management company. FUND OBJECTIVE: The Pimco Active Bond ETF seeks maximum total return, consistent with preservation of capital and prudent investment management. The Fund is actively managed and does not seek to replicate the performance of a specified Index. FUND STRATEGY: The Fund invests under normal circumstances at least 65% of its total assets in a diversified portfolio of Fixed Income Instruments of varying maturities. Fixed Income Instruments include bonds, debt securities and other similar instruments issued by various U.S. and non-U.S. public or private-sector entities. The average portfolio duration of the Fund normally varies within two years (plus or minus) of the portfolio duration of the securities comprising the Barclays Capital Build America Bond Index, as calculated by PIMCO, the Investment Advisor, which as of October 31, 2011, was 11.81 years. Duration is a measure used to determine the sensitivity of a security’s price to changes in interest rates. The longer a security’s duration, the more sensitive it will be to changes in interest rates. The Fund invests primarily in investment-grade debt securities, but may invest up to 10% of its total assets in high yield securities (junk bonds) rated B or higher by Moody’s Investors Service, Inc. or equivalently rated by Standard & Poor’s Ratings Services or, if unrated, determined by PIMCO to be of comparable quality. The Fund may invest up to 30% of its total assets in securities denominated in foreign currencies, and may invest beyond this limit in U.S. dollar-denominated securities of foreign issuers. The Fund may invest up to 15% of its total assets in securities and instruments that are economically tied to emerging market countries. The Fund will normally limit its foreign currency exposure (from non-U.S. dollar-denominated securities or currencies) to 20% of its total assets. The Fund may invest, without limitation, in mortgage or assetbacked securities, subject to applicable law and any other restrictions. The Fund may purchase or sell securities on a whenissued, delayed delivery or forward commitment basis and may engage in short sales. The Fund may invest up to 10% of its total assets in preferred stock, convertible securities and other equity related securities. FUND MANAGEMENT: PIMCO serves as the investment manager for the Fund and is responsible for managing the investment activities of the Funds, the Funds’ business affairs and other administrative matters, subject to the supervision of the Board of Trustees.