Comprehensive Annual Financial Report 2004

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Treasury and Agency notes and bonds; municipal bonds; corporate securities; Yankee and Euro bonds; mortgage-backed securities; mortgage derivatives; asset-backed secu- rities; convertible securities; non-U. S.
dollar denominated securities; non- leveraged structured notes; futures; op- tions; swaps; credit default swaps and PIMCO pooled funds. All investments including those with derivative character- istics are repotted at fair value; therefore, no additional disclosures are required.
PIMCO ma
...y not invest in: caps and floors; preferred stock; emerging market securities; event-linked bonds and bank loans.
Variable investments are held and man- aged by a selection of retail and institu- tional mutual funds, which cover all stan- dard asset classes and categories. The selection of offered mutual funds is de- signed to provide plan participants with the ability to diversify and meet their in- dividual investment goals and strategies.
The PERB, with the advice of the statuto- rily created Employee Investment Advi- sory Council and the assistance of an in- dependent contracted third-party consult- ant and investment analyst, conducts an annual review of the offered mutual funds.


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