Why has the Unit Price of Mari Invest Income declined in 2Q 2026?

Under Mari Invest Income, we distribute the PIMCO GIS Income Fund Admin SGD Hedged – Inc (“Fund”). The primary investment objective of the Fund is to seek high current income, consistent with prudent investment management. Long-term capital appreciation is a secondary objective.

Like all investments, the Fund offered through Mari Invest Income is not immune to market fluctuations, and its Unit Price may increase, decrease, or remain the same over time. The fund manager, PIMCO, shares more insights on the Fund’s performance through the ongoing US–Iran conflict.

Market Overview (as of 20 May 2026)

The continued geopolitical tensions have increased uncertainty in global markets and energy markets. With the increase in energy prices, investors are expecting higher inflation moving forward. As a result, developed market government bond yields have moved higher in response to these inflation concerns.

_{As of 20 May 2026. Source: Bloomberg.}

_{Past performance is not a guarantee or reliable indicator of future results.}

PIMCO GIS Income Fund Performance Update (as of 20 May 2026)

Against this backdrop, the recent pullback in PIMCO GIS Income Fund’s performance reflects short-term market volatility driven by rising global bond yields, rather than any weakening in credit quality or direct exposure to the conflict. Bond prices move in the opposite direction of interest rates, meaning that as interest rates rise, bond prices typically fall, which creates short‑term pressure on the Fund’s unit price.

PIMCO’s view is that the US–Iran conflict is likely to remain contained and should not lead to a prolonged rise in inflation like what was observed in 2022. This is because the backdrop today is quite different. There is no strong surge in demand driven by large government stimulus or pent-up spending, and interest rates are already at relatively high levels, which helps to keep inflation pressures in check.

What lies ahead for PIMCO GIS Income Fund?

While not immune to short-term volatility, PIMCO GIS Income Fund’s Yield-To-Maturity¹ of 7.0% (as of 30 Apr 2026) acts as a substantial cushion against an increase in interest rates to protect against drawdowns.

The Fund maintains a high-quality AA- rated² portfolio which is diversified globally, across different fixed income sectors. This high-quality focus is expected to be resilient if economic weakness starts to materialise. The portfolio of >7,000 holdings helps to reduce concentration risk.

Well-positioned for different scenarios

If the US–Iran conflict de-escalates, markets could see a relief rally, with both equities and bonds benefiting. In this scenario, bond yields will likely fall, which would support bond prices and potentially enhance the Fund’s capital gains. Importantly, the Fund remains flexible, allowing it to take advantage of opportunities as market conditions improve.

Conversely, if the conflict intensifies or becomes prolonged, the bigger risk shifts toward slower economic growth. In such an environment, central banks may eventually need to ease policy to support the economy, which would also be supportive for bonds. The Fund is also well positioned in this scenario, as its emphasis on high-quality, diversified investments helps provide stability, along with exposure designed to be mindful of inflation risks.

Based on information provided by PIMCO, as of 20 May 2026.

Payouts are not guaranteed and will be reviewed periodically by the fund manager. Historical payouts are not indicative of future payouts. Payouts may be made out of either income and/or capital of the fund. Historical performance of the fund or the fund manager is not indicative of future performance of the fund or the fund manager. Returns may vary and are not guaranteed.

¹PIMCO calculates a fund's Estimated Yield to Maturity by averaging the yield to maturity of each security held in the Fund on a market weighted basis. PIMCO sources each security's yield to maturity from PIMCO's Portfolio Analytics database. When not available in PIMCO's Portfolio Analytics database, PIMCO sources the security's yield to maturity from Bloomberg. When not available in either database, PIMCO will assign a yield to maturity for that security from a PIMCO matrix based on prior data. The source data used in such circumstances is a static metric and PIMCO makes no representation as to the accuracy of the data for the purposes of calculating the Estimated Yield to Maturity. The Estimated Yield to Maturity is provided for illustrative purposes only and should not be relied upon as a primary basis for an investment decision and should not be interpreted as a guarantee or prediction of future performance of the Fund or the likely returns of any investment.

²Average Credit Quality (ACQ) is calculated by PIMCO using an internal proprietary calculation methodology and ranges from AAA (highest) to D (lowest); the portfolio contained herein is not reflective of individual ratings by an independent rating agency. ACQ is a market-weighted average of the credit ratings of the credit instruments and holdings which create bilateral counterparty risk, excluding equities and certain other instruments. In calculating the ACQ of a portfolio, PIMCO generally uses the highest of the ratings of S&P, Moody’s or Fitch assigned to each issuer held by the portfolio. If an issue or issuer is unrated, it is generally assigned a rating by PIMCO. A significant portion of a portfolio’s ACQ may be derived from ratings assigned by PIMCO. ACQ is calculated on a daily basis for each portfolio and will change over time as the ratings for individual securities held in the portfolio change or as instruments are added and removed from the portfolio. In general, instruments are weighted at their market value. Certain derivatives, such as credit default swaps, are weighted at “bond equivalent value,” which is the notional amount of the instrument adjusted by the current gain or loss on the position. Certain unrated instruments are not assigned a rating by PIMCO (such as OTC Credit Spreads, Money Market futures, Equity futures, and common stock) and are excluded from the ACQ calculation. This could lead to an under- estimation and under-statement of the credit risk of a portfolio. The portfolio itself has not been individually rated by an independent rating agency. The credit quality of a particular security or group of securities does not ensure the quality, stability or safety of the entire portfolio. PIMCO-assigned ratings used in the calculation may not be representative of PIMCO’s current views should the security review have occurred on a date other than the date that this calculation was generated, which will generally be the case, or should an event that could affect a credit rating have occurred.